10 Sep 07 Gammon India collapses along with the Hyderabad Flyover
An under-construction flyover in hyderabad, which was being constructed by Gammon India, today collapsed suddenly. As soon as the news of this flyover collapse broke out, the stock prices of Gammon India plunged by over 11%. Does a flyover collapse (which probably was insured) justify a fall in stock prices of this magnitude? This is probably an opportunity to buy the shares of Gammon India at a low price.
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A fall in the share price seems justified. A flyover which was not even completed yet has fallen down. This shows the poor quality of construction Gammon India is doing and marks the quality of its other projects questionable too.
Well i wouldnt fully agree saurabh,
Gammon India is one of the oldest civil contracting company in india. If youppl remember the gatewayof india was alsomade by the samecompany then named something else.
Any ways comingt back to the point. the falling of the bridge as saurabh says do raises a lot of questions regarding the integrity of the const done. however the structures are designed to withstand 30-50 years with at least 2-3 times thier usual load. however, by a thumbrule it is assumed that a bridge/flyover undergoes the maximum loading condition only once in its lifetime i.e. while it is under construction.
So primafacia it looks like there were some serious design faults.
I wouldnt blame Gammon for it. Indian ppl mentalityis to balme the contractor as such when something like this happens, but that has a reason too.. the mentality is nurtured bythe ageold ” thekedars or small coorupt contractors” . Now a days things have changed a lot & these are mostly proffesional companies managed by proffesional and compteent persons.