Jyoti Structures shares surged after the engineering company secured two turnkey high-voltage transmission contracts whose combined value is equivalent to nearly 90% of its market capitalisation.
Jyoti Structures shares jumped on Monday after the company said it had won two orders from Power Grid Corporation of India worth a combined ₹949.35 crore for high-voltage direct current transmission work in Rajasthan. The contracts, which are due to be completed over 38 months, lifted the stock as much as 13.97% to ₹9.30 on the National Stock Exchange, while the Nifty 50 was largely unchanged.
According to the company’s exchange filing, the work covers the ±800 kV HVDC Bipole Barmer-II project and the South Kalamb transmission line packages TL01 and TL02. HDFC Sky reported that the scope includes supplying, erecting, testing and commissioning the transmission lines on a turnkey basis, meaning Jyoti Structures will manage the project end to end rather than only part of the build.
The order book is sizeable relative to the company’s valuation. Business Standard reported that the combined contract value is almost 90% of Jyoti Structures’ current market capitalisation of ₹1,069.52 crore, underlining how material the award could be for the engineering firm if the projects progress as planned.
Market performance has been mixed. Business Standard said the stock has outpaced the benchmark over the past week and edged higher over the past month, but it has lagged over longer periods, including the year to date and the past year. Globe Capital Market’s Vipin Kumar said the shares were attempting a recovery from a recent support level, although he added that the broader chart picture remained weak, with resistance seen above current levels and support near ₹7.90.
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