Stone India on track

Stone India had briefly breached the upper circuit today at Rs.23.25, just as it had yesterday too at Rs.22.15. The stock remains up in the green, over 4.5%.

The stock is up after the company stated today morning that it has signed an agreement with Shenyang Brilliant Elevator in China, one of the biggest elevator company in PRC. This will enable the company to enter into Escalator & Elevator business in India in targeted markets in Metros, Indian Railways and Government Projects. Ad this comes on the back of its announcement yesterday that it had won a contract worth Rs 83 crore from Delhi Metro Rail Corporation. The contract is scheduled to be executed by end of December 2015.

With nothing happening on the Indian Railways front, it is good that the company has been aggressively pursuing businesses outside Indian Railways and by winning this contract from Delhi Metro and now the decision to get into elevator and escalator business, it is spreading its risks and opening up more business verticals.