Dilip Buildcon shares jump 5% in afternoon trade today; here's why

Shares of Dilip Buildcon Ltd saw a sharp uptick during the afternoon session on Thursday. The stock surged 5.35 per cent to hit a day high of Rs 581.55. At this price, it has gained over 50 per cent on a year-to-date (YTD) basis.

Today's upward move in the share price came after the construction firm said it has been declared as the lowest bidder for a tender floated by the Konkan Railway Corporation Ltd. The estimated project cost is Rs 1,341 crore.

The tender is for "construction of Twin Tube Unidirectional Tunnel (2-Lanes in each Traffic Direction) in the Kozhikode and Wayanad Districts of Kerala on Engineering, Procurement & Construction (EPC) Basis including Four Lane approach Road for Direct Connectivity Between Anakkampoyil – Kalladi – Meppadi from Km 0.460 to Km 8.735 - (Project length=8.275 km)- Package-II." And, it has to completed in 48 months.

Around 57,000 shares were last seen changing hands on BSE today. The figure was higher than the two-week average volume of 47,000 shares. Turnover on the counter came at Rs 3.26 crore, commanding a market capitalisation (m-cap) of Rs 8,251.64 crore. There were 28,625 sell orders against buy orders of 14,647 shares.

The scrip traded higher than the 5-day, 10-, 20-, 30-, 50-, 100-, 150-day and 200-day simple moving averages (SMAs). The stock's 14-day relative strength index (RSI) came at 58.19. A level below 30 is defined as oversold while a value above 70 is considered overbought.

As per BSE, the stock has a price-to-equity (P/E) ratio of 20.91 against a price-to-book (P/B) value of 1.56. Earnings per share (EPS) stood at 26.40 with a return on equity (RoE) of 7.44.

As of June 2024, promoters held a 70.15 per cent stake in the company.