Dilip Buildcon shares jump 6% on Rs 1,115 crore Kerala project win, then give up gains

Shares of Dilip Buildcon Ltd declined after gaining as much as 6 per cent in Wednesday’s trade, even after the company announced it had emerged as the lowest bidder (L1) for a project worth Rs 1,115.37 crore in Kerala.

In an exchange filing, the company said its joint venture with PSP Projects Ltd — DBL-PSP JV (Dilip Buildcon 74 per cent and PSP 26 per cent) — has been declared the L1 bidder for infrastructure works at Pudussery Central and Kannambra of Palakkad Node in Kerala. The project is part of the extension of the Chennai–Bengaluru Industrial Corridor (CBIC) to Kochi via Coimbatore.

The order, awarded by the Kerala Industrial Corridor Development Corporation Ltd, is on an engineering, procurement and construction (EPC) basis with a completion timeline of 42 months. “The project involves design, construction, testing, commissioning and operation & maintenance of infrastructure works,” Dilip Buildcon said in the filing

Profit booking capped gains in the stock amid the announcement. The scrip, which earlier surged 5.9 per cent to touch a day’s high of Rs 587.90 from its previous close of Rs 555, gave up most of its gains and was trading 0.04 per cent lower at Rs 554.80 at 11 am. The stock remains 52 per cent above its 52-week low of Rs 363.45 and has gained nearly 17 per cent over the past month.

Meanwhile, the Bhopal-based construction firm also informed that in line with SEBI regulations, the trading window for insiders and connected persons will remain closed until 48 hours after this information is made public.

The stock’s relative strength index (RSI) stands at 67.5, indicating a mid-range momentum, while the Money Flow Index (MFI) is at 87.9. The stock also exhibits high volatility, with a one-year beta of 1.3. On the moving average front, the scrip remains comfortably above key levels — trading above its 50-day simple moving average of Rs 491.5 and 200-day SMA of Rs 468.2