Shares of Surya Roshni rallied 10 per cent to Rs 212.85 on the BSE on Monday after the company received orders worth Rs 273 crore from state-owned oil & gas companies. The stock was also trading close to its 52-week high of Rs 214, hit on September 21, 2020.
“The company has obtained orders aggregating to Rs 272.86 crore (excluding GST) for the supply of coated API line pipes to GAIL (India) and Indradhanush Gas Grid (IGGL) for North-East gas grid pipe line project,” Surya Roshni said in a exchange filing.
IGGL awarded a contract worth Rs 221.29 crore, which is to be executed in 60 weeks. Other contract worth Rs 61.57 crore from GAIL (India), which is to be executed in 8 months, the company said.
Earlier this month, Surya Roshni had obtained orders aggregating to Rs 287.45 crore (excluding GST) for the supply of API Grade 3LPE Coated line Pipes to Indian Oil Corporation for LPG pipeline projects and Bharat Gas Resources (BGRL) for CGD.
The stock has outperformed the market by surging 64 per cent in past three months, against 7 per cent rise in the S&P BSE Sensex.
The company said that post the unlock, both the divisions - steel pipes & strips and lighting and consumer durables - are witnessing V-shaped recovery from June 2020 onwards (overall double digit growth in revenue and substantial bottom line improvement) owing to strong presence in the rural and semi-urban markets, growth in agriculture, consolidation of businesses post COVID and better export prospects owing to increasing preference of India-based manufactures over China.
The government's thrust on projects like increasing the share of gas in energy mix, city gas distribution network and improved focus on domestic water segment, irrigation projects, ‘Har Ghar Jal’ scheme etc. will further boost the growth of steel pipes segment.
At 09:59 am, the stock was trading 7 per cent higher at Rs 207, against 0.93 per cent gain in the Sensex. A combined 510,000 equity shares have changed hands on the counter on the NSE and BSE, so far.
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