HG Infra Shares At Record After Solar Power Contract To JV

Shares of HG Infra Engineering Ltd. surged nearly 11% to a record high on Tuesday after its consortium with Stockwell Solar Services Pvt. won a contract to build two solar power plants.

The joint venture has received a letter of award from Jodhpur Vidyut Vitran Nigam Ltd. to build two solar power plants in Rajasthan for a total consideration of Rs 156 crore, according to an exchange filing.

The contract also includes operation and maintenance of both plants for 25 years, the filing said. The orders have to be executed within 12 months, it said.

Shares of the company rose as much as 10.84% to a record high of Rs 1,019 apiece. It pared gains to trade 9.2% higher at Rs 1,082.70 apiece as of 12:29 p.m. This compares to a 0.18% decline in the NSE Nifty 50 Index.

The stock has risen 22.87% on a year-to-date basis. Total traded volume so far in the day stood at 6.53 times its 30-day average. The relative strength index was at 77.73, indicating that the stock may be overbought.

Out of 14 analysts tracking the company, 13 maintain a 'buy' rating and one recommends a 'hold', according to Bloomberg data. The average 12-month consensus price target implies an upside of 6.2%.