IL&FS Engineering has breached the upper circuit today at Rs.40.30 but soon dropped from that level and is currently at Rs.30.40, up almost 7.5%. Volumes are up over 1.4 times.

The stock has jumped up today after it announced that it has secured a contract for elevated depot cum workshop for the Rapid Metro Rail Gurgaon, (RIVIRG- Phase-II). The total value of the contract is Rs 69.97 crore, to be completed within 24 months from the date of issue of letter of acceptance (LOA).

The company has also stated that it is presently in the process of executing two contracts – one is construction of double track elevated viaduct worth Rs 255.84 crore and the second is construction of five elevated stations at DLF Phase-I, Sushant Lok, Sector 53-54, AIT Chowck, and Sector 55-56 in Gurgaon (South Extension) worth Rs 84.30 crore.

The market is naturally enthused with this order coming in and the fact that it is already working on some fat orders already. Prior to bagging this contract, it had completed another contract worth Rs.259 crore.