Rakesh Jhunjhunwala portfolio: Experts recommend 'buy' on this infra stock
Rakesh Jhunjhunwala portfolio: Amid government's infra push, market experts have find out Rakesh Jhunjhunwala portfolio stock Nagarjuna Construction Company (NCC) as a pick, which they believe is expected to get benefit of the government's focus on the infrastructure sector as NCC is mainly in EPS construction business.
Experts said that construction business is directly proportional to the economy, which is also giving signs of recovery as unlock activities are fast unfolding. They said that NCC shares are looking poised for an upside movement from short to long-term.
Speaking on this Rakesh Jhunjhunwala portfolio stock; Avinash Gorakshkar, Head of Research at Profitmart Securities said, "The Company is mainly in EPS construction, which is labour intensive. So, the stock going down during lockdown was obvious as there was labour shortage for the company to execute its projects. But, as the economy is opening up, the company is fast executing its projects. It has strong order book of near ₹5000 crore and recently it has received an order worth ₹877 crore from a state government agency. So, the order flow has begun from the government agencies and it is well known that government of India has special focus on the infrastructure sector. Since, this company is one of the pioneers in this sector, it is expected to get benefit of this government focus. In my view, second half of FY22 will be highly promising and one can buy NCC shares for medium to long-term time horizon."
Speaking on what chart pattern suggests in regard to NCC shares; Sumeet Bagadia, Executive Director at Choice Broking said, "The stock has started showcasing upside movement. One can buy this counter at current levels for immediate short-term target of ₹85 to ₹90 maintaining stop loss at ₹75."
Rakesh Jhunjhunwala share holding in NCC
As per NCC shareholding pattern for Q1FY22 period, Rakesh Jhunjhunwala holds 6,67,33,266 shares or 10.94 per cent stake whereas his wife Rekha Jhunjhunwala holds 1.16 crore shares or 1.90 per cent, together constituting around 12.84 per cent of the net company shares.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.