Blue Star Forays Into Water Projects Business With Rs 375-Crore Orders
Blue Star has secured three rural water supply orders from the Odisha government.
Shares of Blue Star Ltd. gained after the company forayed into water projects business.
The air-conditioner and commercial refrigerator maker has secured three rural water supply orders from the Department of Rural Water Supply and Sanitation, Government of Odisha, worth Rs 375 crore, according to its exchange filing.
An order worth Rs 126.51 crore for the execution of mega piped water supply to 144 villages in Baliapal Block of Balasore District, Odisha, including five years of operation and maintenance.
Another order worth Rs 62.16 crore for the execution of mega PWS to 72 villages under 11 gram panchayats of Nischintakoili block of Cuttack district, Odisha, including five years of operation and maintenance.
A third order worth Rs 186.68 crore for the execution of mega PWS to 13 gram panchayats of Banki, 17 GPs of Dampada, and two GPs of Baranga Block, in Cuttack district, Odisha, including five years operation and maintenance.
"The scope of all the above orders comprises field investigation and total station survey; soil investigation; hydraulic and structural design; procurement, construction, and erection of electro-mechanical equipment; testing and commissioning; and operation and maintenance; with a completion period of 24 months," the filing said.
Reacting to the deal, shares of Blue Star rose as much as 2.3%, before closing 1.9% higher on Monday. Of the 22 analysts tracking the company, 14 maintain a 'buy', six suggest a 'hold', and two recommend a 'sell', according to Bloomberg data. The 12-month consensus price target implies an upside of 18%.