Rekha Jhunjhunwala, wife of late investor Rakesh Jhunjhunwala has raised stake in construction firm Nagarjuna Construction Company (NCC) during the October to December 2022 quarter. According to the shareholding pattern of NCC, Rekha Jhunjhunwala has raised her stake in the company from 12.64 per cent in the September quarter to 13.09 per cent. These shares include those NCC shares as well that earlier belonged to her late husband Rakesh Jhunjhunwala.
Rekha Jhunjhunwala owned 13.09 per cent stake or 8,21,80,932 shares of NCC in the December quarter. However, in the September 2022 quarter, Rekha Jhunjhunwala owned 7,93,33,266 shares or 12.64 per cent stake in Hyderabad-based NCC. In the last quarter, Rekha Jhunjhunwala purchased 28,47,666 NCC shares, amounting to 0.45 per cent of total paid up capital of the infrastructure company.
Meanwhile, shares of NCC were trading higher than the 5-day, 20-day, 50-day, 100-day and 200-day moving averages. At 11:06 am, the NCC stock was down 0.11% to Rs 93.25 on BSE. The midcap stock was trading 3.42% away from the 52-week high of Rs 96.96 on BSE
NCC stock has gained 11% this year and risen 23% in a year. Total 1.17 lakh shares of the firm changed hands amounting to a turnover of Rs 1.16 crore on BSE. Market cap of the firm rose to Rs 5,864 crore.
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ICICI Direct has assigned a buy call to the mid cap construction stock with a target price of Rs 110 apiece.
“The firm is firmly placed to capitalise on a huge infrastructure pipeline; continued momentum in awarding activities to translate into healthy order inflows. Strong order book to ensure topline growth (16% CAGR over FY22-25E) with margins stable at 10%. Focus on monetisation of non-core subsidiaries to bring in cash flows. Unwinding of receivables to provide liquidity boost; strengthening of balance sheet is likely with a gradual decline in debt,” said ICICI Direct.
NCC Limited is engaged in construction/project activities in the infrastructure sector. The company is engaged in the infrastructure sector, primarily in the construction of industrial and commercial buildings, housing projects, roads, bridges and flyovers, water supply and environment projects, mining, power transmission lines, irrigation, and hydrothermal power projects, real estate development.
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