Shares of Dredging Corporation of India rose 5% in the recent trading session after the company received an annual maintenance contract of Rs 250 crore for the Mumbai and JNPA navigation channels, including dredging of about 20 million cubic meters.

Following the contract extension by Jawaharlal Nehru Port Trust (JNPT), the Dredging Corporation of India is planning its highest ever turnover of Rs 1,000 crore for the fiscal year (FY) 2022-23.

The Ministry of Ports, Shipping and Waterways has issued dredging guidelines for 2021, emphasizing the need for major ports to award long-term dredging contracts.

A long-term three-year contract issued by JNPA would provide DCI with a guaranteed turnover of Rs 250 crore per year.

The share traded at Rs 294.8. On the Bombay Stock Exchange (BSE), it peaked at Rs 300, up from its previous close of Rs 286.55.

Founded in 1976, Dredging Corporation of India Ltd. is a small-cap shipping industry company with a market capitalization of Rs 802.34 crore.

The stock returned negative 28.39% over three years, compared to a 36% increase in the Nifty Smallcap 100. As of March 31, 2022, promoters owned 73.47% of the company.