Gains For Olectra Greentech Ltd. as Megha Engineering & Infrastructures Ltd. Scores Big Contract
Olectra Greentech Ltd. (OTL) shares have been in focus on the bourses today, following the announcement of a new contract for the construction of a greenfield electric vehicle manufacturing facility in Telangana. The contract has been awarded to Megha Engineering & Infrastructures Ltd. (MEIL), which is expected to be a big boost for OTL in its plans to expand its presence in the electric vehicle (EV) market.
Positive Impact on Stock
The news has had a positive impact on OTL’s stock as it closed 0.21% lower in the previous session on BSE at Rs 1306.65 per share. However, the stock has seen huge growth over the past year, rising 115.43% as investors have been encouraged by the firm’s push into the EV segment. The stock touched an intraday high of Rs 1348.85 on BSE today as 1.57 lakh shares of the firm changed hands amounting to a turnover of Rs 20.75 crore. This push has also increased the market cap of the firm to Rs 10,725 crore.
Megha Engineering & Infrastructures Ltd.
The contract awarded to MEIL marks another step forward in their plans to expand their business. The firm is an established player in the engineering, construction, and infrastructure sectors with interests in the energy, transportation, and irrigation markets. MEIL has a strong presence in Telangana, which makes them the ideal partner to aid OTL’s manufacturing facility plans.
A promising outlook
With Olectra Greentech Ltd. further securing its place in the EV market and Megha Engineering & Infrastructures Ltd. reaping the benefits of this contract, the outlook looks promising for both companies. The rising demand for electric vehicles has led to an increase in the number of investments and contracts being made in the segment, which should bode well for both companies in the future.
