Dilip Buildcon shares jump 8% on bagging Rs 4,167-crore order

Dilip Buildcon share price jumped 8 percent intraday on July 23 after the company received the letter of acceptance for a Rs 4,167.70-crore EPC project in Gujarat.

The project includes engineering, procurement and construction contract for Bhadbhut barrage, flood protection embankments and associated works across the river Narmada near village Bhadbhut in Bharuch district.

The bid project is valued at Rs 4,167.70 crore, with a completion period of 48 months and a maintenance period of 10 years, the company told exchanges.

"We are pleased to inform that the DBL-HCC (JV) has received the letter of acceptance (LOA) on July 22, 2020 from the Narmada, Water Resources, Water Supply and Kalpasar Department (Water Resources) for an EPC project in the state of Gujarat," the company said in a filing to the exchanges.

The stock witnessed a 1.73 times spurt in volume and was trading with volumes of 39,516 shares, compared to its five-day average of 17,628 shares, an increase of 124.16 percent. It was trading at Rs 304.70, up Rs 22.70, or 8.05 percent and touched an intraday high of Rs 307.50.

The company said its joint venture with HCC received a Rs 1,900- crore NHAI contract for design and construction of a 22-km road to link Jharkhand and Bihar.

According to Moneycontrol SWOT Analysis powered by Trendlyne, Dilip Buildcon has been able to generate net cash with improving net cash flow for the last two years. It has a strong cash-generating ability from core business and cash flow from operations has been improving for two years.

Moneycontrol technical rating is very bullish with moving averages and technical indicators being bullish