Shares of National Standard (India) surged in Wednesday's trade to hit their upper price band level, again. The shares have been locked in upper circuit for the past few sessions after announcing their December quarter (Q3 FY23) results. The stock today jumped 10 per cent to hit a day high of Rs 8,291.70 (upper circuit) over its previous close of Rs 7537.95.
At today's high level of Rs 8,291.70, the realty developer has ascended by 108.85 per cent in six straight sessions. The scrip traded 123.43 per cent higher from its adjusted one-year low of Rs 3,711.05, touched on December 23 last year.
Analysts largely felt that the stock looked 'overbought' and suggested booking profit at current levels.
"The stock has already given a breakout from the price Rs 4,600-4,800 zone and also moved above 100-DMA (Day moving average) but the volume in this stock is significantly very low. So, one can book profit and avoid fresh buying at this current level," said Ganesh Dongre, Senior Manager — Technical Research at Anand Rathi.
"Strong Q3 FY23 results with improvement in margins as well has led to a strong rally in National Standard's stock price. Currently, the stock is very overbought and hence investors should book profits or keep a stop loss at the support of Rs 6,582," said AR Ramachandran from Tips2trades.
National Standard's net profit rose 13.29 per cent to Rs 3.24 crore in the December quarter (Q3) as against Rs 2.86 crore during the same period a year ago.
Revenue from operations grew by a whopping 19,233.33 per cent to Rs 5.80 crore in Q3 FY23 as against Rs 3 lakh in Q3 FY22. The company's total income stood at Rs 8.55 crore in Q3 FY23 over a net income of Rs 4.42 crore in Q3 FY22.
A total of 195 shares changed hands today, which was lower than National Standard's two-week average volume of 514. Turnover on the counter stood at Rs 16.16 lakh, commanding a market capitalisation (m-cap) of Rs 16,583.40 crore. There were 893 buy orders on BSE, against nil sell orders.
The counter was last seen trading higher than 5-day, 20-, 50-, 100- and 200-day moving averages. National Standard has a one-year beta of 0.48, suggesting low volatility on the stock.
The counter's 14-day relative strength index (RSI) came at 90.99. A level below 30 is defined as oversold while a value above 70 is considered overbought. The company's stock has a price-to-equity (P/E) ratio of 951.64.
The company is promoted by Mumbai-based Macrotech Developers (formerly Lodha Developers), which, as of December 2022, owns a 73.94 per cent stake in National Standard. National Standard is a part of Lodha Group since May 2011.
It was incorporated on August 20, 1962, as National Standard Duncan Ltd under the Companies Act, 1956. The name was changed from National Standard Duncan Ltd to National Standard (India) Ltd.
The company is presently engaged in real estate development. It has undertaken an aspirational residential project of Lodha Grandezza in Thane, Wagle Estate. The project comprises twin 18-storey residential towers in a mixed-use development with three commercial Supremus towers comprising boutique offices with spaces in the range of 2,000 square feet to 20,000 square feet.
Meanwhile, Indian equity benchmarks were trading higher in early deals, led by gains in banks, financials, metals and technology stocks.
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