Surya Roshni surges 25% in 8 days after winning orders worth Rs 287 crore

Shares of Surya Roshni climbed 6 per cent to a 52-week high of Rs 207.50 on the BSE on Friday. The stock has rallied 25 per cent in eight days after winning orders worth Rs 287 crore from state-owned oil and gas companies.

On September 8, 2020, the company said it received two separate orders worth Rs 287.45 crore from Indian Oil Corporation and Bharat Gas Resources.

The company received an order worth Rs 152.31 crore from Indian Oil Corporation for supplying API grade pipes for LPG pipe line project in Uttar Pradesh. The order is to be executed in 10 months. The company also received an order worth Rs 135.14 crore from Bharat Gas Resources for supplying API grade pipes for pan-India city gas distribution. The order is to be executed in 12 months.

In the past three months, the stock has zoomed 104 per cent, against 14 per cent rise in the S&P BSE Sensex. Surya Roshni is the largest exporter of ERW (electrical resistance welding) pipes, largest producer of ERW GI (galvanised iron) pipes and second largest lighting Company in India.

The government's thrust on projects like increasing the share of gas in energy mix, city gas distribution network and improved focus on domestic water segment, irrigation projects, ‘Har Ghar Jal’ scheme etc. will further boost the growth of steel pipes segment.

“With strong emphasis or Government on Local lo Vocal, higher demand from agriculture, manufacturing exports and good monsoon, the growth in rural India is expected to be higher than urban in future. As company's major sale comes from rural, semi urban & exports and therefore, going forward, both the segments of the company shall be performing well,” Surya Roshni said while announcing its June quarter results, on July 30.

At 01:50 pm, the stock was trading 4 per cent higher at Rs 204 on the BSE, as compared to 0.28 per cent rise in the S&P BSE Sensex. The trading volumes on the counter more-than-doubled with a combined 491,000 equity shares changing hands on the NSE and BSE, so far.