Sunil Hi-Tech on good roads

Sunil Hi-Tech is on a roll today. The stock which had closed yesterday at Rs.140.50, opened today at Rs.150 and went on to an intra day high at Rs.158.20. The stock remains over 7% high at Rs.151 levels. Volumes are up over 4 times.

The stock has reacted positively to the company receiving a road project contract in Karnataka. This order, worth Rs.122 crore is from the Ministry of Road Transport and Highways - Government of India for Rehabilitation and Upgrading to 2 lanes of Madhugiri–Chikkaballapura-Mulbagal section road in the state of Karnataka.

This work is expected to be completed in around 24 months. The market is very enthused with this news as this is the first major EPC which the company has received in the road segment.

The company had ended Q3FY15 with a 15% (YoY) rise in total income at Rs.417 crore and net profit rose 45% at Rs.9 crore.