Shares of NCC Ltd jumped 7.43 per cent on Wednesday to hit a one-year high level of Rs 96.90, extending their gains for the third straight session. The stock eventually settled 2.16 per cent higher at Rs 92.15 over its previous close of Rs 90.20. A total of 22.30 lakh shares changed hands today on BSE, amounting to a turnover of Rs 20.95 crore. At this price, the company’s market capitalisation or m-cap stood at Rs 5,785.61 crore. Technical charts hinted that the stock looked ‘overbought’ but trend on the counter may remain ‘upbeat’.
At today’s closing level of Rs 92.15, NCC has gained 80.69 per cent compared to its June low of Rs 51.
The stock has jumped 15.04 per cent in the previous five sessions. On a year-to-date (YTD) basis, it has surged 28.43 per cent.
Analysts largely remained ‘positive’ on the stock, with Rs 100 as an ‘interim’ target. One analyst felt that NCC could scale up to Rs 135 levels if it takes out the Rs 100 mark. Another analyst suggested traders could book profit at current levels.
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Osho Krishan, Sr. Analyst- Technical & Derivative Research at Angel One, “NCC has witnessed a strong move in the past couple of trading sessions on the back of robust volumes and is placed at a 52-week high zone. On the technical front, the stock is hovering near the previous swing highs of the Rs 95-96 odd zone, and any decisive breach above the same could only trigger the next leg in the rally. On the flip side, there is a shift in the support base near Rs 84-odd levels. The recent price action construes a positive development and is likely to remain upbeat.”
Santosh Meena, Head of Research, Swastika Investmart, “NCC is showing strong bullish momentum after witnessing a breakout of the Rs 75 mark. The overall structure is very lucrative, however, Rs Rs 98–100 is an immediate supply area where we can expect some profit booking. Any dip around Rs 85 will be a good buying opportunity because if it takes out the Rs 100 mark, then we can expect a rally towards Rs 120/135 levels. On the downside, Rs 85 and Rs 80 are strong support levels.
Anand James, Chief Investment Strategist at Geojit Financial Services, said, “Though Rs 100 is an interim target, today’s spike above Rs 95 may have rendered the trend vulnerable towards profit booking. A fresh entry aiming Rs 120 may be attempted either on a push above Rs 100 or on dips below Rs 85, with a downside marker placed below Rs 79 over a period of two months.”
A R Ramachandran from Tips2trades, said, “NCC stock price has run up tremendously since the past few weeks but now is in a heavily overbought zone. Investors should book profits at current levels and wait for a dip near Rs 80.3-82 levels to buy for targets of Rs 95-102 in the near term.”
Meanwhile, India Ratings and Research (Ind-Ra) upgraded the company’s long-term issuer rating to ‘IND A+’ from ‘IND A’ with a ‘stable’ outlook.
Ind-Ra stated that one of the top reasons for the rating upgrade would be the timely execution of order book and increased segmental and geographical diversification.
AK Prabhakar, Head of Research at IDBI Capital, said that the Hyderabad-based construction company’s irrigation-related and some other projects delivered improved results. “Ahead of next year’s Budget, many infrastructure stocks have moved higher due to the expectation of an increased focus on spending in the sector,” he added.
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Rekha Jhunjhunwala, wife of late investor Rakesh Jhunjhunwala, held a 10.79 per cent stake or 6.77 crore shares of NCC Ltd as of September 30, 2022.
Meanwhile, Indian equity benchmarks settled on a higher note today, led by gains in technology and metal stocks.