After rising sharply thanks to a strong third quarter earnings report from the company, shares of Welspun Enterprises Limited have pared most of the gains amid somewhat lackluster moves by investors.
The stock rose this morning, reacting to an announcement from the company that its net profit increased as much as 105% in the October - December 2017 quarter, at Rs 34.40 crore, compared to year-ago quarter. Total income was up 336% at Rs 298.10 crore in the third quarter, the company said.
Welspun Enterprises Limited is engaged in infrastructure business and has investments in oil and gas exploration as well.
After hitting a 52-week high of Rs 198 on BSE (Rs 197.65 on NSE) on 10 January 2018, Welspun Enterprises retreated and suffered some sharp losses over the next four weeks to touch a low of Rs 148 by February 6.
The stock spurted to a high of Rs 184.90 this morning on fairly impressive volumes, but gave up gains swiftly and dropped to Rs 170.20 and has been moving in a tight band since then.
On BSE, the Welspun Enterprises counter has clocked a volume of about 2.02 lakh shares so far in the session, about 14% higher than the average daily volume of 1.74 lakh shares. On the National Stock Exchange, the counter has clocked a volume of about 9.64 lakh shares so far in the day.
The company is a niche player in the construction industry for over three decades and has rich experience of executing EPC contracts in projects across various sectors like roads, water, industrial structures and some projects through PPP.
While announcing quarterly results, Welspun Enterprises Limited said that the National Highways Authority of India (NHAI) is likely to bid out about 95 HAM (Hybrid Annuity Model) projects in the next 3-6 months, valued at approximately Rs 1 lakh crore and that the company will continue to selectively bid for these, and participate in the Bharatmala programme of NHAI.
The company has currently submitted bids for 5 such projects, totalling almost Rs 4800 crore, and 154 km in length, which are yet to be opened.