Shares of KNR Constructions surged 16% over the past two sessions after the company announced a major order win worth Rs 4,800 crore from Patratu Vidyut Utpadan Nigam, a subsidiary of NTPC. The contract pertains to the development and operation of the Banhardih coal mining block located in Jharkhand.
On Thursday, June 26, KNR Constructions’ stock rose nearly 5% to ₹242.09 on the NSE. This follows an 11% jump in Wednesday’s trade, when the stock hit an intraday high of ₹235.85. The company’s market capitalization now stands at Rs 6,716 crore.
The Rs 4,800 crore project will be executed by a joint venture between KNR Constructions and Harsha Constructions, where KNR will operate 74% of the mining block. The project timeline includes an initial development period of 360 days followed by a five-year operational phase. The coal block holds reserves of approximately 34.50 million tonnes.
The stock momentum comes despite KNR reporting a 61% decline in net profit to Rs 248 crore for the March quarter. Analysts suggest that the large order provides visibility for future revenue and earnings recovery.
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