Rakesh JhunJhunwala News : The shares of Nagarjuna Construction Company (NCC), included in the portfolio of Rakesh Jhunjhunwala, are expected to rise. Analysts believe that the benefit of increasing the focus on the infrastructure sector by the government can benefit the shares of this giant construction company of the South. NCC is mainly active in EPS Construction business. Many analysts believe that the construction business is directly related to the pace of the economy. As the economic activities are increasing, so is the expectation of growth in the construction sector. This will definitely benefit the shares of this company.
Company has strong order book, shares may climb
According to analysts, the construction activities were slow due to the lockdown caused by Corona. But now with the opening of the lockdown, the company is busy completing its projects faster. The company has a strong order book of Rs 5000 crore. Recently it has received an order of Rs 877 crore from a state government agency. Since the company is a well-known name in the construction sector, its shares will benefit from the government’s increased focus in the infrastructure sector. Experts believe that the second half of the current financial year can prove to be the best for the company. At present, its shares are trading at Rs 78. This stock has seen a peak of Rs 99.50. In the short term, its target can be kept at Rs 85 to 90. Stop loss can be placed at Rs.75.
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Expected improvement in the financial performance of the company
The Hyderabad-based company’s profit declined to Rs 16.93 crore in the first quarter, as against Rs 81.23 crore in the first quarter of the previous financial year (2020-21). The turnover of the company has also decreased and it has come down to Rs 1211 crore as compared to Rs 2212.70 crore in the first quarter of the financial year 2020-21. However, the company is now getting projects fast. The company is expected to perform well in the second quarter.
However, according to the shareholding pattern of the first quarter of the financial year 2020-21, Rakesh Jhunjhunwala holds 10.94 percent stake in this company. He had 6,67,33,266 shares of the company. His wife Rekha Jhunjhunwala had 1.16 crore shares of the company. His stake was becoming 1.90 per cent. The share of both together is making 12.84 percent.