Shares of Shapoorji Pallonji group firm Afcons Infrastructure rallied 3.7% to their days high of Rs 434.45 on the BSE on Tuesday after the company announced it has emerged as the lowest bidder for a major railway project in the Republic of Croatia.The bid was awarded by H Infrastruktura d.o.o.
(H Infrastructure Ltd) for the reconstruction of the existing track and construction of a second line on the Dugo SeloNovska railway route.
The project also includes overhead electrification and signalling & telecommunication work.The estimated contract value, excluding VAT, is 677 million (approximately Rs 6,800 crore).
The work will be executed on a BOQ/item-rate basis, with a scheduled completion period of 72 months from the commencement date post-award.Earlier in May, Afcons Infrastructure said it had received a letter of commitment for a civil and structural contract worth Rs 175 crore from Reliance Industries for work at Jamnagar, Gujarat.
The final value will depend on the actual work executed, as per the contract terms.Also Read:7 Nifty500 stocks with highest dividend yields.
Do you own any?Live EventsOn Monday, Afcons Infra shares ended 0.36% higher at Rs 418.70, tracking broader market gains.
However, the stock has declined 17% over the past six months and is down 22% year-to-date.According to Trendlyne, the average target price for Afcons Infra is Rs 543, suggesting a potential upside of nearly 30% from current levels.
Of the seven analysts covering the stock, most have a Strong Buy rating.Also Read: Apollo Tyres, Brigade Enterprises among 10 small-cap stocks trading below industry PE; may rally up to 43%(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own.
These do not represent the views of the Economic Times)