Heard on the Street: Pipavav Shipyard up 4% on new order buzz

Shares of Pipavav Shipyard outperformed the market amid buzz that the company is expected to receive a large order from Mazgaon Dock in Mumbai.

The stock rose nearly 4% to Rs 81.75 on huge volumes, with 49 lakh shares changing hands compared with the two week average of 20.2 lakh shares traded on the BSE.

When contacted, the company officials declined to comment on the market talk. The stock had significantly underperformed the Sensex until participants got a whiff of high net worth investor Rakesh Jhunjhunwala’s intention to buy stake in the company.

Pipavav Shipyard has rallied 25% in the past two weeks, as investors have taken a positive view of Jhunjhunwala’s interest in the company. It is strengthening focus on defence and offshore businesses.

(Contributed by Harish Rao)