Here's why Kalpataru Power shares jumped 7% today

Shares of Kalpataru Power Transmission jumped 7 per cent to hit an intraday high of Rs 403.70 on BSE after the company received a Letter of Intent (LoI) for Power Transmission and Distribution project in international market.
 
The stock opened 7 per cent higher at Rs 403.70 against the previous close of Rs 377.50. With a market capitalisation of more than Rs 5800 crore, the shares stand higher than 5 day and 50 day moving averages but lower than 20 day, 100 day and 200 day moving averages.
 
"The LoI is for a prestigious project involving design, engineering, supply and construction of HVDC power transmission line of 700 kms. The estimated value of the project stands at Rs.3,276 Crores (USD 431 Million). The LoI is subject to fulfilment of certain conditions. The project will start immediately with design and engineering activities in Phase 1," the company said.
 
Commenting on the development, Mr. Manish Mohnot, Managing Director & CEO, KPTL said “We feel privileged to announce the receipt of the above mentioned LoI. This landmark achievement has been on several counts - intensive efforts that we have been putting in over last several years on large size projects for long-term value creation, developing strong client relationships and penetrate deeper into the focused markets on back of our strong technical and execution capabilities."
 
This is also a hugely rewarding experience as we were working along with the same clients for past few years and is a testament for our quality solutions and expertise in power T&D business. We look forward to many such opportunities in future.”
 
According to MarketsMojo, the stock is technically in a Mildly Bearish range and 50 per cent of promoter Shares are pledged. In falling markets, high promoter pledged shares puts additional downward pressure on the stock prices. The proportion of pledged holdings has increased by 4.7 per cent over the last quarter.
 
KPTL is one of the largest specialised EPC companies engaged in power transmission & distribution, oil & gas pipeline, railways and civil infrastructure business.