This Article is From Nov 25, 2011

Rally in Nagarjuna Construction fizzles out

Rally in Nagarjuna Construction fizzles out
Nagarjuna Construction Company fell 5.17% to Rs 176 at 11:58 IST on reports the company is foraying into hospitality sector through its unit NCC Urban Infrastructure.


Meanwhile, the BSE Sensex was down 402.44 points, or 2.35%, to 16,715.25.


On BSE, 42,000 shares were traded in the counter as against an average daily volume of 1.12 lakh shares in the past one quarter.


The stock hit a high of Rs 180.30 and a low of Rs 171.55 so far during the day. The stock had hit a 52-week high of Rs 195 on 30 April 2010 and a 52-week low of Rs 113.50 on 13 July 2009.


The stock had outperformed the market over the past one month till 4 June 2010, gaining 1.06% compared with the Sensex's 0.11% decline. It outperformed the market in past one quarter, soaring 17.06% as against 0.86% rise in the Sensex.


The mid-cap construction company has an equity capital of Rs 51.31 crore. Face value per share is Rs 2.


Nagarjuna Construction Company holds 80% stake in NCC Urban Infrastructure. According to reports, all the hospitality developments by the subsidiary would be under the Nagarjuna brand. The unit plans to invest Rs 250-300 crore to add hotels, resorts and serviced apartments to its real estate offerings.


The company, which intends to have a pan-India presence for its hospitality business, has identified quite a few sites which are part of the land bank already with the promoters. These include sites in Chikmagalur, Kochi, Pune and two more projects in Bangalore.


Nagarjuna Construction Company's net profit soared 168.60% to Rs 102.62 crore on 38.90% increase in net sales to Rs 1521.81 crore in Q4 March 2010 over Q4 March 2009.

.