Dilip Buildcon emerges as lowest bidder; stock gains

Today, the share of Dilip Buildcon opened 3.16 per cent higher on BSE after the company announced that it has emerged as L-1 bidder for mine developer-cum-operator (MDO) contract for the development & operation of Mahanadi Coalfields Limited (MCL), a subsidiary of Coal India Limited during the weekend.

The contract for the development & operation of Siarmal open cast project in Sundergarh district (Odisha) is worth Rs 37,215.58 crore and has a period of 25 years. The mineable reserve block is 1,091 million metric tonnes, which is to be exploited for a period of 25 years at a peak rated capacity of 50 million tonnes per annum.

The company provides infrastructure facilities on an engineering, procurement & construction (EPC) basis. The core business of the company is undertaking construction projects across India. It specialises in constructing state & national highways, city roads, and so on. The company enjoys 10 per cent of the market share in the EPC and HAM project segment.

On Monday, at around 11.32 am, the share of Dilip Buildcon was trading 0.91 per cent higher at Rs 350.20. It recorded an intraday high of Rs 358.05 on BSE. Its share has gained 5.61 per cent in the past three days after the company disclosed its September quarter earnings for FY20-21.