Krsnaa Diagnostics Shares Jump 10% After Rajasthan High Court Reinstates Contract

Shares of Krsnaa Diagnostics Ltd. jumped over 10% on Friday after the Rajasthan High Court reinstated an agreement for providing diagnostic services in the state.

Previously, the state government had cancelled the acceptance letter awarded to a consortium of Krsnaa Diagnostics and Telecommunications Consultants India Ltd. by the National Health Mission in Rajasthan.

Shares of the company surged 10.14%, the highest since May 30, before paring gains to trade 8.11% higher at 10:21 a.m. This compares to a 0.55% gain in the benchmark NSE Nifty 50.

The stock has gained 6.99% year-to-date. The total traded volume stood at 4.8 times its 30-day average. The relative strength index was at 53.47

The two analysts tracking the company maintain a 'buy' rating on the stock, according to Bloomberg data. The average of 12-month analyst price target implies a potential upside of 69.6%.