Shares of J Kumar Infraprojects shot up sharply on Tuesday morning going up close to 15% to hit a new 52-week high of ₹568.80.
What Happened: The massive surge today comes as CLSA maintained its “buy” rating on the stock raising the price target of ₹720 from ₹385. The revised target indicates a 45% upside from the stock’s last closing price of ₹494.60.
The global brokerage said that the company has been backing several urbanisation orders which bodes well for its growth. The firm added that the company has benefitted from the focus on climate-resistant infrastructure.
The Mukul Agrawal-backed stock has been on a roll this year. Since the start of the year, the stock has surged up over 90%. Just in the last 30 days, the stock has surged 35%. Agrawal owns a 2.64% stake in the company.
Talking about the company order book, it bagged two massive contracts just this month. The company announced on Dec. 15 that it has received a letter of acceptance for the construction of a 4-lane elevated corridor on the Grand Southern Trunk Road, with a substantial total order value of approximately ₹582.68 crore. The company aims to complete this ambitious project within the next two years.
This announcement followed closely on the heels of another construction order secured earlier this month, valued at ₹378.7 crore. The prior project focuses on the design and construction of a crucial flyover addressing the “Missing Links” from Link Road, Andheri (West), to Poonam Nagar (JVLR). Notably, this project is positioned adjacent to the alignment of Metro Line – 6 of the Mumbai Metro Rail Project, adhering to Mumbai Metropolitan Region Development Authority (MMRDA) specifications.
Price Action: Shares of J Kumar Infraprojects were trading 13.69% higher at ₹562.30 shortly after market open on Tuesday.
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