Shares of ​Punj Lloyd shot up today. Know why

Punj Lloyd Ltd., a mid-sized engineering construction company, shot up in Monday's trade on news that the firm had bagged an order from Indian Oil Corp.

State-run IOC awarded a contract worth 1,094 crore rupees to Punj Lloyd to build a Sulpur Refinery Unit, among other works, on an EPC basis at its Haldia Refinery in West Bengal.

As a consequence, Punj Lloyd surged 1.4 rupees, or 5.8 percent, to 25.60 rupees on the National Stock Exchange where 13.3 lakh shares were traded compared with the 5-day average of 14.4 lakh shares.

Punj Lloyd's market capitalisation has slid 30 percent in the past one year to 804 crore rupees as investors stayed away from companies that were directly exposed to the industrial slowdown.

Punj Lloyd is trading at 0.3 times its book value of 78.4 rupees and its revenues have slid 7.5 percent compounded in the past five years.

Image credit: Indiatimes