Dilip Buildcon shares gain 4% after arm gets appointed date letter for project

Shares of Dilip Buildcon gained 4 per cent in Tuesday's trade after it said a wholly-owned subsidiary of the company received the letter of appointed date from Mahanadi Coalfields for an order, whose contract value stands at Rs 36,419 crore, including GST.

In November 2020, the company was emerged as L-1 bidder for the mine developer cum operator (MDO) contract for development and operation of Siarmal Open Cast Project from Mahanadi Coalfield (MCL), a subsidiary of Coal India.

It received the letter of acceptance (LOA) from Mahanadi Coalfield on March 4, 2021.

Following the fresh development, the stock rose 4.43 per cent to hit a high of Rs 229.60 on BSE. The scrip ahs plunged 48 per cent in the last one year. That said, the stock has an average target price of Rs 312, as per data publicly available with Trendlyne, which suggests a potential 39 per cent upside.

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Dilip Buildcon said DBL-Siarmal Coal Mines, its subsidiary, received the letter of appointed date from the Mahanadi Coalfields and declared January 02, 2023 as an appointed date.

The project is for mine development cum operations of Siarmal Open Cast Project in Sundergarh district of Odisha.  The contract period is 25 years and that the mine reserve stands at 1,091 million tonnes, the company said in a BSE filing.

"The trading window for dealing in the securities of the company for all insiders, designated persons and their immediate relatives, connected persons, fiduciaries and intermediaries is already closed from the end of quarter till 48 hours after the declaration of financial results of the company for the quarter ended December 31, 2022," it said in a BSE filing.