National Standard shares extend gains, jump 20% to hit upper circuit today

Shares of National Standard (India) jumped 20% per cent to hit their upper price band of Rs 5,710.60 in Friday's trade over its previous close of Rs 4,758.85. At today's high level of Rs 5,710.60, the stock has gained 53.88 per cent from its 52-week low of Rs 3,711.05, hit on December 12, 2022.

Yet, the scrip traded 58.56 per cent lower from its one-year high of Rs 13,780, touched on January 13 last year. Support on the counter could be seen at Rs 5,170.

A total of 1,804 shares changed hands today, which was more than 10 times compared to National Standard's two-week average volume of 174. Turnover on the counter stood at Rs 98.92 lakh, commanding a market capitalisation (m-cap) of Rs 11,414 crore.

There were 318 buy orders on BSE, against sell orders of 1 share.

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 0.44 per cent, suggesting low volatility on the stock.

The counter's 14-day relative strength index (RSI) came at 80.12. 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 600.79.

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. Sales rose 19,233.33 per cent to Rs 5.80 crore in Q3 FY23 as against Rs 0.03 crore 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 strong daily and subsequently weekly close above Rs 5,483 today could lead to an extended target of Rs 6,548 in the coming days. The stock, however, is now getting into the overbought zone and hence a strict stop loss of Rs 5,170 (also its support level) should be maintained," said AR Ramachandran from Tips2trades.

National Standard 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 of boutique offices with spaces in the range of 2,000 square feet to 20,000 square feet. The target client profile of this project is the higher/upper middle income segment of the market.

Meanwhile, Indian equity benchmarks fell in today's deals, dragged by technology and consumer stocks.

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