Sadbhav Engineering shares jump 11% after it is declared the lowest bidder by Gujarat Metro Rail Corporation

Shares of Sadbhav Engineering jumped about 11 percent in morning trade on BSE on December 22 after it said it was declared the lowest bidder by Gujarat Metro Rail Corporation for a project.

The project is for the construction of 11.6 km elevated viaduct from Kadarsha Ni Nal to Dream City dead-end including ramp for depot entry near Dream City and 10 Stations for Surat Metro Rail Project," the company said.

Following the announcement, the stock surged buy cooled off later and traded 4.12 percent higher at Rs 60.60 on BSE at 1115 hours.

Sadbhav Engineering is engaged in the business of development of infrastructure facilities in areas of canals, irrigation projects, roads, bridges, etc.

Amarjeet Maurya - AVP - Mid Caps, Angel Broking pointed out that the company has been declared as the lowest bidder by Gujarat Metro Rail Corporation (GMRC) Limited for the Metro Rail projects which cost is around about Rs 780 crore and the award is expected to receive soon from Gujarat Metro Rail Corporation.

As of 2QFY21, the company has an order book Is around Rs 9,397 crore which provides revenue visibility about 2.7 times of FY20 revenue, Maurya said.