KUALA LUMPUR (Jan 27): Eversendai Corp Bhd (fundamental: 0.75; valuation: 1.2) shares rose more than 3% in early trade on Tuesday after the company secured a contract worth RM184 million from India's Reliance Industries Ltd for a mixed-use development in Mumbai. 

At 9.18am, Eversendai rose 3.33% or 2 sen to 62 sen with 2.44 million shares done.

The group said the contract was for the the construction of the Dhirubhai Ambani International Convention and Exhibition Centre (DAICEC) in Mumbai.

It said fabrication work would be undertaken by Eversendai’s fabrication facilities in Malaysia, Dubai and India, and was scheduled to be completed by April 2016.

Meanwhile, Hong Leong IB Research (HLIB) has maintained its “Hold” rating on Eversendai with a target price of 57 sen and said the company was a beneficiary of the strengthening US dollar as Middle East projects were price in local currency which in turn was pegged to the dollar.

In a note Tuesday, the research house said Eversendai’s year-to-date contract wins stood at RM224 million after it landed a RM184 million job in India, taking its orderbook to RM1.5 billion, implying 1.6x revenue cover.

“Remain concerned on weak oil prices and continued variation orders.

“Maintain Hold, 57 sen target price,” it said.

 (Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)