 "Mining firm secures Rs 158 cr contract from Reliance Ind; shares jump 10%")
Shares of South West Pinnacle Exploration jumped 9.7 per cent at Rs 165.05 a piece on the BSE in Wednesday’s intraday trade. South West Pinnacle share price soared after the company bagged an order worth Rs 158 crore from Reliance Industries.
The drilling and exploration service provider was awarded an extension of contract for CBM production from Reliance Industries, for production hole drilling for Coal Bed Methane (CBM) in the State of Madhya Pradesh. In addition, the project has a provision to have three more extensions of six months each of the extended contract.
With this extension, the present operations will be doubled with deployment of a new set of Rig and equipment with additional manpower, the company said in a statement on Tuesday.
South West Pinnacle has successfully completed two projects of RIL in the same domain in the past and is executing its’ Phase- 1 of the present contract since last over 14 months hence this extension in contract (Phase -2) with three more possible extensions of six months each would make sizable increase in company’s order book with assured business in medium to long run, the company further said.
“This will almost double the present revenue from RIL. Total contract value on which the company is presently working on (15 projects across all domains on pan India basis serving both private and public sector clients) has gone up to Rs. 495 Crores, Mr. Jain added. He went on to say that the overall order book is now at its all-time high with record orders worth Rs. 309 Crores added during the first 9 months of current FY 2024-25 alone,” said Vikas Jain, Chairman & Managing Director, South West Pinnacle Exploration.
The company has a total market capitalisation of Rs 443.23 crore. Its shares are trading at a price to earnings multiple of 54.97 times and at an earning per share of Rs 2.89.
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At 12:00 PM, the stock price of the company advanced by 5.85 per cent at Rs 158.85 a piece on the BSE. By comparison, the BSE’s Sensex was up 0.28 per cent to 78,357.29 level.
South West Pinnacle Exploration Limited is an India-based exploration services company that offers end-to-end drilling, exploration, and allied services. The company caters to industries such as coal, ferrous and non-ferrous metals, atomic and base metals, as well as water and unconventional energy sectors.