South West Pinnacle Shares Surge as Company Secures Rs 167 Crore CBM Contract Extension from Reliance Industries
Shares of South West Pinnacle Exploration have shown strong momentum in early trading following the announcement that the company secured a significant contract extension. The deal involves supplying coal bed methane (CBM) production services to Reliance Industries Ltd (RIL).The news sent a positive ripple through the market for the exploration firm. In early morning trade on July 7, South West Pinnacle shares were climbing robustly in response to the development.
Stock Performance After Contract Win
At 09:33 am, the stock was quoting at Rs 224.30 on the BSE. This price represented a gain of Rs 5.75 or 2.63 percent for the day. Earlier, investors observed that shares climbed more than 4 percent in early trading sessions, driven by the contract win.The company’s stock has shown considerable strength over the medium term. It currently stands at 22.1 percent below its 52-week high but is significantly higher, trading 86.06 percent above its 52-week low. This indicates a strong upward trajectory since previous lows.
Details of the RIL Contract Extension
The company confirmed the extended contract through an exchange filing. The services relate to coal bed methane (CBM) production in Madhya Pradesh and are valued at around Rs 166.82 crore, inclusive of GST.South West Pinnacle stated that they are well-positioned to execute this awarded work promptly. The required machinery, trained manpower, and necessary resources are already in place within the company’s setup. Consequently, no additional assets need deployment to fulfill the contract obligations.
Financial Snapshot and Business Outlook
The revenue from this extended contract is expected to start flowing into the business starting from the second quarter of FY 2026-27. This forward visibility suggests stability and growth opportunities for the firm in the near future.In the previous trading session, the share had closed at Rs 218.55, marking a decline of 3.42 percent or Rs 7.75. The company maintains a market capitalization of Rs 669.09 crore. Over the past nine months, the share price has risen by more than 75 percent.
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