Niraj Cement Structurals Share Price Jump 6% After ₹220 Crore NHIDCL Project Win

Mumbai, November 25, 2023: The shares of Niraj Cement Structurals Limited saw a spike in their price during today’s morning trading session. Investors appear to be very optimistic about the company’s growth prospects. The shares were up 5.90% at ₹37.67 at 12:17 IST as a result of Niraj Cement Structurals Limited securing an award for a ₹220.14 crore road construction project with the National Highways & Infrastructure Development Corporation Limited.

The scrip opened at ₹39.12, reached the upper circuit limit for the day, and stayed there, with no sellers in the order book. However, the low end of the share price was ₹36.68, the market cap was 212.30 Cr, and the P/E ratio was 10.40. Niraj Cement Structures Ltd was listed in October 2020. The company belongs to the civil construction, highways, bridges, and large EPC infrastructure projects mainly in India.

Strong Buying Interest Drives Upper Circuit

The stock has reached its upper circuit limit of ₹39.12 due to overwhelming buying pressure, as evidenced by 35,438 buy orders and no sell orders. This spike in demand was driven by the issuance of a large infrastructure mandate, which increased investor confidence in the company. The current price of the stock is more comparable to its 52-week low than it is to its 52-week high.

Why the Stock is Rising

An EPC contract for ₹220.14 crore for the construction of a 2-lane paved-shoulder Kohima Bypass Road in Nagaland has been awarded to the company by the government of Nagaland. The project will be executed over 2 years, or 24 months, starting from receipt of the order. The order improves revenue visibility and bolsters the order book of the company; hence, positive investor sentiment is usually reflected when such project wins occur.

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