An MoU with the Adani Group sends this engineering stock to a 52-week high

Shares of Vascon Engineers Ltd. gained as much as 14% to hit a fresh 52-week high on Monday, September 13, after the company last Friday said that it inked a Memorandum of Understanding (MoU) with Adani Infra (India) Ltd. to collaborate as executive partner under an early engagement model for five years.

As per the agreement, Vascon Engineers will be associated with Adani on selected projects from the design stage, thereby ensuring seamless integration of design and execution.



Vascon Engineers said it aims to engage with Adani Group on projects and this will contribute to over 30% of their annual turnover. The collaboration is envisioned as a long-term strategic partnership with the scope and performance of the arrangement to be reviewed annually, it added.

CNBC-TV18 had reported about Vascon Engineers on September 16, as a stock being a multibagger from the Covid-19 lows but still trading below their IPO price.

Having made its stock market debut in February 2010, at an IPO price of ₹165, shares of Vascon gave up most of their value, by the turn of the decade, falling to as low as ₹6, during the Covid-19 pandemic.

If one compares returns from the Covid-19 lows, the stock is up over 10x. However, it still trades below its IPO price. The company has never delivered a bonus issue to its shareholders, nor carried out a stock split, as the face value of the share remains at ₹10.

Shares of Vascon Engineers gained 13.9% to hit its 52-week high of ₹65.95 apiece on Monday. The stock was up 10.2% at ₹63.76 apiece around 10 am. The stock has gained 31% in the past month and 67.7% in the last six months.

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