The shares of BGR Energy Systems Limited opened at a 15 per cent high on Tuesday at Rs 77.40 as against its previous close of Rs 67.45. Till the afternoon it had further gained 5 per cent and was locked in an upper circuit of 20 per cent at Rs 80.90 levels.
The stock rallied after the company announced that it has bagged an order worth Rs 330 crore from Indian Oil Corporation. As per the order, the company is responsible for carrying out the construction of civil and structural works in the Panipat refinery project complex. The completion period for the said project is 18 months.
BGR Energy Systems Limited offers services ranging from product manufacturing to project execution. The company carries on the business in two segments, the Supply of systems and Equipment and Turnkey Engineering project contracting.
In addition to that, the company also offers five complementary businesses in the areas of Power Projects business, Oil and Gas Equipment business, Air Fin Coolers business, Environmental Engineering business, and Electrical Projects business.
The company’s financials have grown weaker in Q2FY23. During that period their revenue stood at Rs 180.83 Crores as against Rs 508.88 Crore in the same quarter a year earlier. Along with the decline in revenue, their net losses for the period widened and stood at Rs 122.25 crore as against a profit of Rs 2.65 crore in Q2FY22.
The market capitalization of the company stood at Rs 583 crore. The promoters hold a 75 per cent stake in the company which has remained consistent for the last five quarters. However, the promoters pledged 40 per cent of their stake in the company in the June quarter which remained the same in the latest quarter.
Written by Anoushka Roy
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