Gujarat-based power generation company awarded Rs 2,025 crore order to H. D. Enterprises, Vadodara

On Wednesday, shares of Gujarat Industries Power Company Ltd plunged 5.22 per cent to Rs 183.50 per share from its previous closing of Rs 193.60 per share. The stock’s 52-week high is Rs 268.25 per share and its 52-week low of Rs 148.15 per share.

The Board of Directors of Gujarat Industries Power Company Ltd approved the awarding of a significant domestic contract, valued at approximately Rs 2,025 crore, to H. D. Enterprises, Vadodara. This seven-year turnkey mining contract encompasses three key components: the removal of overburden, raising, crushing, and transportation of approximately 22.75 million metric tons (MTe) of 250 mm size lignite from the Valia Mine to the power plant; the re-handling of approximately 21.00 million cubic meters (MCuM) of overburden dump at Valia Mine; and the re-handling of approximately 24.50 MCuM of lignite at the SLPP Power Plant.

About the Company

Gujarat Industries Power Co Ltd, a Public Limited company established in 1985 and owned by the Government of Gujarat, is primarily involved in electrical power generation. The company boasts an installed generation capacity of 1184.40 MW, featuring a diverse portfolio of power plant assets across Gujarat. This includes two gas-based thermal projects in Vadodara with a combined capacity of 310 MW, and two lignite-based thermal projects in Nani Naroli totalling 500 MW. Additionally, the company operates wind and solar power plants, contributing to its varied energy generation mix.

The company has a market cap of over Rs 2,900 crore. The shares of the company have a PE of 15x whereas the industry PE is 40x. The stock is up by 24 per cent from its 52-week low of Rs 148.15 per share.  

Disclaimer: The article is for informational purposes only and not investment advice.