Rekha Jhunjhunwala: A Financial Success Story
Investors have been facing several challenges in the stock market recently, but amidst the downturn, new investment opportunities are emerging. An NCC, owned by market veteran Rekha Jhunjhunwala, has provided investors with significant returns over the past two years. The company’s shares closed at ₹62.1 on May 13, 2022, but have since soared to ₹273 per share. NCC has delivered a return of 339% during this period, compared to just 51% by the BSE 500 index.
On Saturday, May 18, 2024, NCC’s share price increased by 0.80% to ₹278, while on the BSE, it rose by 8% to ₹272.95 from the previous close of ₹251.05. By April 5, 2024, the company’s share price was ₹277, hitting a record high of ₹90. NCC’s stock has been trading above its 20-day, 50-day, 100-day, and 200-day moving averages.
Over the past year, NCC’s stock has provided investors with a 140% return, with a 62% return initially. The company has a market capitalization of ₹16,989 crore, with a total trading volume of 9.94 lakh shares on the BSE at ₹26.53 crore. According to technical terms, the company’s relative strength index is at 53.6, and the stock has not been overbought or oversold. NCC has a one-year beta of 1.2, representing the highest volatility of this period.
In the fourth quarter of FY24, the stock showed strength after excellent earnings. NCC reported a net profit of ₹239.2 crore, a 25.2% increase year-on-year. In the fourth quarter of FY23, the company had recorded a net profit of ₹191 crore. EBITDA increased by 18.5% to ₹1,00,000 crore, compared to ₹5504 crore in the previous financial year.
“Strong performance and approvals have prompted us to revise FY25E/26E EPS (earnings per share) by 4-7% as Rekha Jhunjhunwala, the late investor Rakesh Jhunjhunwala’s wife, held a 10.64% stake and ₹6.67 crore in the March 2024 quarter,” Nuwama said.
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