Rekha Jhunjhunwala-Backed Small Cap Stock Bags ₹500 Cr Order, Shares Jump

Shares of NCC Ltd jumped up Friday morning going up over 1.5% to hit an intraday high of ₹169.90.

What Happened: The company on Friday said that it secured two new orders totalling ₹553.48 crore (excluding GST) in its building division. The company added that the orders are from a private agency.

The announcement today helped the stock maintain its five-straight session-gaining streak. The Rekha Jhunjhunwala-backed stock has been on a steep upward trajectory since the start of the year. Jhunjhunwal owns a 13.1% stake in the company that is worth around ₹1,300 crore. Since the start of the year, the stock has surged up over 80%.

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Earlier this month, the company posted its earnings for the quarter ended September. The company saw an around 40% year-over-year surge in revenue at ₹4,719 crore. However, net profits for the quarter experienced a decline of 40.96% year-on-year (YoY) at ₹77.34 crore.

In comparison to the preceding quarter, NCC demonstrated a commendable 7.74% growth in revenue. However, the bottom line of the financial statement saw a significant contraction, with profits witnessing a substantial decrease of 55.46%.

Despite the drop in profit, domestic brokerage firm HDFC Securities maintained its “buy” rating for the stock with a price target of ₹231.

Price Action: NCC’s share price was up 0.27% to trade at ₹167 on Friday afternoon.

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