Experts give 'buy' tag despite Rekha Jhunjhunwala trimming stake in NCC shares

livemint.com:

Rekha Jhunjhunwala portfolio: Ace investor Rekha Jhunjhunwala has booked partial profit in her portfolio stock NCC shares. As per the shareholding pattern of NCC for the January to March 2024 quarter, Rekha Jhunjhunwala has trimmed her stake in the construction company from 11.24 percent to 10.10.64 percent. However, stock market experts are still bullish on this Rekha Jhunjhunwala portfolio stock.

They said that the company has a strong order book and post-Lok Sabha elections, it is expected to benefit after the infrastructure projects running in full swing. They predicted a ₹310 per share target for the stock in the medium term. As mentioned above, in the shareholding pattern of NCC Ltd for the recently ended March 2024 quarter, Rekha Jhunjhunwala owns 6,67,73,766 NCC shares, which is 10.64 percent of the total paid-up capital of the company.

However, in the shareholding pattern of NCC Ltd for the October to December 2023 quarter, Rekha Jhunjhunwala owned 7,05,80,932 NCC shares or 11.24 percent stake in the company. This means Rekha Jhunjhunwala offloaded 38,07,166 NCC shares or 0.60 percent stake in the construction company. Despite Rekha Jhunjhunwala trimming its stake in NCC during Q4FY24, stock market experts see more upside in this Rekha Jhunjhunwala portfolio stock.

They said that NCC Ltd is sitting on a strong order book and predicted ₹310 as the medium-term target for NCC share price. On fundamentals that may fuel NCC share price in the short to medium term, Avinash Gorakshkar, Head of Research at Profitmart Securities said, “NCC Ltd is in the business of infrastructure construction business. The company has a strong order book and it gets business from the government-backed infra projects.