Madhucon Projects rallies on large order win

December 12, 2011

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Madhucon Projects rose 2.03% to Rs. 52.65 at 13:20 IST on BSE, extending Monday’s 3.8% rally triggered by a large order win.

Meanwhile, the BSE Sensex was down 60.15 points, or 0.37% to 16,106.98.

On BSE, 2,472 shares were traded in the counter as against average daily volume of 4,935 shares over the past one quarter.

The stock hit a high of Rs. 53.50 and a low of Rs. 50.50 so far during the day. The stock had hit a 52-week low of Rs. 47 on 22 November 2011. The stock had hit a 52-week high of Rs.132.90 on 2 December 2010.

The stock has risen 5.9% in two trading sessions from Rs. 49.70 on Friday, 25 November 2011, boosted by a large order win. The company announced the order win after market hours on Friday, 25 November 2011.

The small-cap stock had underperformed the market over the past one month till 28 November 2011, falling 26.34% compared with the Sensex’s 9.2% fall. The scrip had also underperformed the market in past one quarter, declining 31.66% as against 2.01% rise in the Sensex.

The company has an equity capital of Rs. 7.38 crore. Face value per share is Re 1.

Madhucon Projects on Friday, 25 November 2011, said it has bagged an EPC contract worth Rs. 422.06 crore from Bharat Coking Coal, Dhanbad. The project is to be completed in 84 months from the date of acceptance, Madhucon Projects said in a statement.

Madhucon Projects has order book position of around Rs. 6500 crore, inclusive of road, irrigation, power and mining sectors. Madhucon has also been prequalified in EPC works of over Rs. 20000 crore in various sectors, the company said in a statement.

Madhucon Infra, a subsidiary of Madhucon projects, is having road vertical, power vertical and coalmine vertical. There are total 8 road projects under road portfolio costing around Rs. 7000 crore in which 4 toll road projects are commissioned and toll revenues are being collected, Madhucon Projects said in a statement. With regard to 3 more newly secured Build-Operate-Transfer (BOT) projects, financial closure has been completed and the project construction activities have just started, Madhucon added. LOA for one more BOT toll road project between Vijayawada and Machilipatnam, costing around Rs. 760 crore. is received from National Highway Authority of India (NHAI), Madhucon Projects said in a statement.

Madhucon Projects further added Madhucon Infra is also coming up with a 1920 megawatts (MW) coal based power project near Nellore. The first phase of 300 MW power plant is expected to be commissioned by end of this year. The second phase of 300 MW power plant is expected to be commissioned by August 2012. Madhucon Projects has also been declared as preferential bidder in a 300 MW mine mouth power project in Indonesia, which is on BOT basis, the company said in a statement.

With regard to the coal subsidiary i.e. PT Madhucon Indonesia, in principle clearance for jetty construction has been received and the company is hopeful of commencing the coal production by January/February 2012, Madhucon said in a statement.

Madhucon Projects’ net profit fell 10.1% to Rs. 6.05 crore on 18.3% growth in net sales to Rs.416.05 crore in Q2 September 2011 over Q2 September 2010.

Madhucon Projects is an engineering construction company. The company is involved in projects that include highway construction, infrastructure projects, and construction of hydel and thermal power projects.

Source: indiainfoline.com