Punj Lloyd rises over 15%

Every time there is news of receipt of an order, that’s the only time we see this upward surge in this beleaguered company, Punj Lloyd. The stock price rose over 15% to Rs.18.40. Its UC is at 20% - Rs.19.10.

The company announced yesterday after market hours that it has won an ‘engineering, procurement and construction’ order from the NHAI Odisha worth Rs.505 crore.

This order is for for six/four Laning of NH 5 (New NH 16) from Puintola to Tangi in Odisha.

The construction period is 730 days from the start of the project.

One just hopes that these orders start showing positive results in the earnings. It had ended Q3FY18 with a loss of Rs.184 crore v/s loss of Rs.231 crore (YoY). The company has incurred losses resulting in erosion of its net worth as at December 31, 2017. It submitted a proposal to its lenders for restructuring of debt. The company is taking several measures to improve operational efficiencies, besides monetising the identified assets as avenues of raising funds.