NBCC India Shares Surge 12% After MoU To Monetise Rashtriya Ispat Nigam Non-Core Assets
The order involves project management services at Steel Authority of India Ltd.'s Bokaro plant.
Shares of NBCC (India) Ltd. surged over 12% on Thursday after the company signed a quadripartite memorandum of understanding with the Ministry of Steel, Rashtriya Ispat Nigam Ltd., and National Land Monetization Corp.
As per the deal, the company would act as technical-cum-transaction advisor and assist Ministry of Steel, Rashtriya Ispat Nigam and National Land Monetization Corp. in monetisation of non-core assets of Rashtriya Ispat Nigam available at Vishakhapatnam.
The builder company also won orders worth Rs 180 crore for project management services at Steel Authority of India Ltd.'s Bokaro plant.
Shares of the company jumped 12.79%, the most since March 29, before paring gains to trade 10.66% higher at 10:07 a.m. This compares to a 0.35% advance in the Nifty 50.
The stock has risen 60.44% on a year-to-date basis. Total traded volume stood at 6.6 times its 30-day average. The relative strength index was at 71, suggesting that the stock may be overbought.
Of the four analysts tracking the company, two recommend a 'hold' and two suggest a 'sell' on the stock, according to Bloomberg data. The average 12-month consensus price target implies a downside of 33.1%.