Welspun Enterprises Ltd. announced on Friday that it has been declared the lowest bidder for a major water tunnel project in Mumbai, a venture initiated by the Brihanmumbai Municipal Corporation (BMC). The company's bid, amounting to approximately Rs 1,989.9 crore (excluding GST), is aimed at designing and constructing a tertiary-treated water conveyance tunnel connecting the wastewater treatment facility in Dharavi to another facility in Ghatkopar.

The scope of the project includes the construction of an 8.48 km tunnel with a bored diameter of 3,500 mm, to be executed within 93 months using a tunnel boring machine. This significant infrastructure development is expected to enhance Mumbai's water management system.

Welspun Enterprises, known for its diversified portfolio in infrastructure development, has recently reported a robust financial performance. For the quarter ending June 2024, the company posted a net profit of Rs 959.8 crore, reflecting an 18.2% increase year-on-year. Total income for the same period rose to Rs 959.76 crore, up from Rs 750.04 crore in the previous year.

Despite these positive developments, shares of Welspun closed 1.2% lower at Rs 557.25 apiece on the NSE on Friday, amidst a minor decline in the benchmark Nifty 50. However, the stock has seen impressive growth year-to-date, rising by 70.8%, and an even sharper increase of 96.9% over the past 12 months. According to Bloomberg data, one analyst currently holds a "hold" rating on the stock, suggesting a potential downside of 3.5% based on average 12-month price targets.