Welspun Enterprises Shares Jump Nearly 6% On Winning BMC Water Tunnel Project

Shares of Welspun Enterprises Ltd. snapped their two-day fall and jumped nearly 6% after the company was declared lowest bidder for a Rs 1,990-rupee water tunnel project by Brihanmumbai Municipal Corporation.

The project is for designing and building tertiary treated water conveyance tunnel from Dharavi wastewater treatment facility to Ghatkopar wastewater treatment facility, an exchange filing said. It added that the key scope of contract includes design and construction of a 8.48 km tunnel with a 3,500 mm bored diameter, to be executed within a period of 93 months using a tunnel boring machine.

"Our offer excluding GST is Rs. 1,989.90 crore," it said.

The stock rose today after falling nearly 4% in the last two sessions.

The scrip rose as much as 5.88% to Rs 590 apiece. It pared gains to trade 2.2% higher at Rs 569.05 apiece, as of 9:42 a.m. This compares to a 0.6% decline in the NSE Nifty 50 index.

It has risen 74.77% on a year-to-date basis and 100.41% in the last 12 months. Total traded volume so far in the day stood at 1.98 times its 30-day average. The relative strength index was at 48.51.

One analyst tracking the company has a 'hold' rating on the stock, according to Bloomberg data. The average 12-month consensus price target implies a downside of 5.6%.