Small Cap Stock Jumps 4% After Bagging ₹709 Cr Railway Project

HG Infra Engineering shares jumped up sharply on Friday after the announcement was made, going up over 4%.

What Happened: The stock is upbeat after being selected as the lowest bidder by the East Central Railway for an engineering, procurement and construction (EPC) project. The project is worth around ₹709 crore and is expected to be completed within 3 years.

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The construction project entails the establishment of a double line track, encompassing the 3rd and 4th lines, with comprehensive activities such as earthwork, blanketing, construction of minor and major bridges, electrification works, and other miscellaneous tasks. This infrastructure initiative is designed to support a 32.5 T axle load capacity, inclusive of Electrical TRD (2×25 KV), within the Gaya-Son Nagar section.

The company’s bid was lower than the Railways estimated cost of around ₹772 crore. Last month, the company had bagged another railway order. The estimated cost of that project is ₹716.11 crore, and the construction period is set at 30 months.

The announcement today, helped the stock end its eight straight session losing streak.

Price Action: HG Infra's share price was up 2.72% to trade at ₹905 in early trade on Friday.

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