Gammon India spurts on Rs 1,700-crore order win

NEW DELHI: Shares of Gammon India ended 8.49 per cent up at Rs 12.27 in trade on Monday after the company said it has bagged an engineering, procurement & construction ( EPC) contract worth over Rs 1,700 crore.

Under the project, the company will engage in four-laning of the Udhampur-Ramban section of NH-1A from 67 km to 89 km and from 130 km to 151 km under NHDP phase II in Jammu & Kashmir, the company said in a filing to BSE

The stock rose 16.27 per cent to hit a high of Rs 13.15 on BSE within the first hour of trade.

Last month, the company had announced bagging a similar but smaller transportation contract amounting to Rs 397 crore. The company's order book stood at Rs 11,666 crore at the end of the June quarter.

The construction and engineering firm has reporting been losses in the past couple of quarters. In June quarter, its standalone net loss widened to Rs 187.50 crore on poor sales and higher finance cost. The company had posted a net loss of Rs 120.27 crore in the corresponding quarter last year.

Weak earnings have been weighing on the stock performance. The stock has lost more than half of its market value so far this year.