Lanco Infra up 10% on Rs 3294 cr EPC order win

Moneycontrol Bureau

Lanco Infratech shares surged 10 percent Tuesday, after the company received a contract worth Rs 3,293.96 crore for EPC work.

"...EPC division has been awarded the prestigious EPC contracts by Gujarat Industries Power Company (GIPCL), for their 2 x 300 MW Lignite based thermal power project," the company in its filing said.

According to a release, the scope of contract includes off-shore supplies, on-shore supplies, civil and structuring works and on-shore services contract on engineering, procurement and construction (EPC) basis.

At 10:16 hours IST, the stock was quoting at Rs 9.29, up 6.05 percent on the Bombay Stock Exchange.

But it lost 14 percent in past one month and more than 23 percent over the last one year.

Kotak Institutional Equities has suspended its coverage on the stock and is awaiting clarity on some issues before resuming it.

"We await the resolution of key issues like fuel supply issues for most of the operational projects, and clarity on tariff disputes for Udupi and Amarkantak with SEB’s leading to receivables of Rs 47 billion; lack of new order inflows in the EPC segment, and excessive reliance on in-house projects; and ramp-up of capacity in the Australian coal mining business to achieve breakeven profits," the Kotak note to clients said.