Shares of Vascon Engineers Ltd hit the 5% upper circuit on Thursday after the company announced that it had received a Letter of Intent (LoI) worth ₹347.43 crore from the Central Public Works Department (CPWD), Guwahati.
The stock touched an intraday high of ₹35.16 on the BSE. At 9:17 am, it was trading at the same level, up 4.99%, while the BSE Sensex was down 0.58% at 73,553.30.
CPWD awards redevelopment project
According to the company’s exchange filing, the order relates to the demolition and redevelopment of RBI quarters at Zoo-Narengi Road Colony in Guwahati, Assam.
The project will be executed on an engineering, procurement and construction (EPC) basis.
Order details
- Order value: ₹347.43 crore (including GST)
- Client: Central Public Works Department, Guwahati
- Nature of work: Demolition and redevelopment of RBI quarters
- Location: Zoo-Narengi Road Colony, Guwahati, Assam
- Execution period: 36 months
- Category: Domestic order
The company said the contract does not involve any related-party transaction.
Stock hits upper circuit
Vascon Engineers reached the upper circuit limit of ₹35.16 during the session.
Stock snapshot
- Current price: ₹35.16
- Gain: 4.99%
- 52-week high: ₹74.61
- 52-week low: ₹26.75
Technical view
According to Virat Jagad, Senior Technical Research Analyst at Bonanza, the stock remains in a broader corrective phase after falling sharply from its 2024 peak near ₹90.
He said the stock is trading within a falling channel and continues to face resistance from the upper trendline.
Jagad noted that the recent rebound from around ₹30 has not been accompanied by strong buying momentum.
He added that the Relative Strength Index (RSI) is currently in the neutral 40-50 range, indicating the absence of strong momentum.
Key technical levels
Support
- ₹32
- ₹30
A break below this range could push the stock towards ₹27, according to Jagad.
Resistance
- ₹38
- ₹43
These levels coincide with the 50-day and 200-day moving averages.
The analyst said a decisive breakout above ₹43 and the upper boundary of the falling channel would be needed to signal a trend reversal and potentially pave the way for a move towards ₹50-55.
Until then, he expects the stock to remain range-bound with a cautious to mildly bearish bias.
TL;DR
Vascon Engineers hit the 5% upper circuit after receiving a ₹347.43 crore EPC order from CPWD, Guwahati, for the redevelopment of RBI quarters in Assam. The project is scheduled to be completed within 36 months.
AI Summary
- Vascon Engineers secured a ₹347.43 crore order from CPWD, Guwahati.
- The project involves redevelopment of RBI quarters in Assam.
- Shares hit the 5% upper circuit at ₹35.16.
- The contract will be executed over 36 months.
- Analysts see ₹38 and ₹43 as key resistance levels.
