Shares of Afcons Infrastructure surged in trade on Wednesday after the company secured a Rs 5,301-crore contract for the Vadhvan Port Project in Maharashtra.

At around 9:52 am, the stock was trading 6.5 percent higher at Rs 336 on the NSE. However, earlier in the session, it had rallied more than 9 percent following the announcement.

The Shapoorji Pallonji Group company said it has received a Letter of Award (LoA) from Vadhvan Port Project Limited (VPPL) for the construction of a 10.14-km-long breakwater at the upcoming Vadhvan Port. According to the company, the structure will be the world's second-longest breakwater upon completion.

Commenting on the development, Managing Director S Paramasivan said, "It is a moment of immense pride for us to secure one of the world's landmark marine projects. This project showcases India's growing expertise in executing complex infrastructure on a global scale. We are confident that the successful completion of this project will further strengthen our Prime Minister's vision of Viksit Bharat."

Executive Chairman Krishnamurthy Subramanian said the order reflects Afcons' expertise in executing large and complex marine infrastructure projects and added that the Vadhvan breakwater project would support India's ambition of becoming a global maritime hub.

The order announcement came after market hours on June 9. The stock had closed 1.06 percent higher at Rs 315.50 in the previous session.

Despite Wednesday's rally, Afcons shares remain down about 3 percent over the past week, 7 percent over the last month and 19 percent on a year-to-date basis.

Commenting on the stock, Virat Jagad, Senior Technical Research Analyst at Bonanza said, "Afcons Infrastructure continues to trade within a broader declining channel, reflecting a weak long-term trend despite recent stabilization near the lower boundary of the pattern. After witnessing a sharp correction from the 470 zone to around 280, the stock has formed a base and is attempting a recovery. The recent bounce has pushed prices above the short-term moving averages, while RSI has moved above 50, indicating improving momentum and a gradual return of buying interest."

He further added that, "However, the stock remains below the falling channel resistance and the 200-day moving average near 360, which continues to cap upside potential. A decisive breakout above 340-345 could strengthen bullish sentiment and pave the way for a move towards 360 and 385. On the downside, 320 remains an important support level, and a breach below it may trigger renewed selling pressure towards 300. Overall, the near-term outlook has improved, but a confirmed breakout above channel resistance is required to signal a meaningful trend reversal."

Source: Moneycontrol 

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