Shares of G R Infraprojects soared 5% on March 29 after the company secured an order from East Coast Railway for Rs 587.59 crore.

Shares of the company were trading at Rs 982.45 on the BSE at 9:55 am, up 3.8%.

The project is for constructing tunnel works between Adenigarh-Purunakatak, including tunnels T4, T5, T6 and T7, with a length of about 7.49 kilometres, and related works for the East Coast Railway’s Khurda-Bolangir new railway line project.

Axis Securities noted that the company’s order book remained strong at Rs 14,000 crore, providing revenue visibility over the next 1.5-2 years. With a healthy NHAI pipeline, it expects G R Infraprojects to receive better orders, driving its revenue growth forward.

However, the brokerage pointed to slower order wins as a problem. But the company maintained its FY23 order intake guidance of Rs 15,000 crore.

The company wants to diversify into other sectors, such as railways, cableways and subways, to keep revenue streams other than roads intact. A further diversification strategy benefits the company as new opportunities emerge in various infrastructure-related areas.

Shares have fallen 16% over the past three months, despite winning several orders.