Dilip Buildcon shares decline after touching intraday high despite order execution

The shares of Dilip Buildcon Ltd recovered early losses on Monday after the company reported that its subsidiary executed a concession agreement on Monday. Its shares touched an intraday high of Rs 351 on BSE.

The company reported that its wholly-owned subsidiary, Narenpur Purnea Highways Limited, has executed the concession agreement with National Highways Authority of India (NHAI). The agreement extends the scope of work on the construction and upgradation of NH-131A from Narenpur to Purnea to four lanes in the state of Bihar on a hybrid annuity model (HAM) basis.

As per the press release on the stock exchanges, the bid for the project stands at the cost of Rs 1,905 crore. The stated project will have a completion period target of 24 months and its operational period will be 15 years from the date of completion. As of the end of the first quarter of FY21, the total order book of the company stood at Rs 26,115 crore with the largest chunk coming from the road & highway sector.

Its share price corrected in the second half of Monday’s trading session. The stock closed at Rs 328.80, down by 2.5 per cent on BSE.