ITD Cementation zooms over 100% in one month

The stock has rallied 139% to Rs 306 from Rs 128 on May 13, 2014, compared to 6.7% rise in benchmark index.

ITD Cementation India is locked in upper circuit up 5% at Rs 306 on BSE, extending its month long rally on expectation of the company is the frontrunner to develop the Ganga river-front project.

At 1320 hours, a combined around 15,000 shares already changed hands and there are pending buy orders for 27,000 shares on the BSE and NSE.

In past one month, shares of the construction and engineering company more than doubled from Rs 128 on May 13, 2014 on BSE, compared to 6.7% rise in benchmark S&P BSE Sensex.

However, the company on May 21, 2014 clarified that, no negotiations have taken place for the said project and the company had not given any announcement in this regard.

“As a part of our routine marketing efforts, a copy of Sabarmati Riverfront Project Report and Feasibility Report has been submitted to one of the Government Department with a request to go through the Project Report and whether this can be replicated for Ganga River Project. We also requested that we will make technical presentation in this regard, if so required,” ITD Cementation said in a statement.

Meanwhile, analyst at Angel Broking recommends ‘buy’ rating on the stock with a target price of Rs 346.

We are bullish on the stock on account of its strong order book, which stands at Rs 4,100 crore as on March 31, 2014, and improving macro scenario, with the new government having come in, said analyst in a client note.

Also, the company is expected to benefit from the new government’s emphasis on spurring infrastructure growth and removing regulatory bottlenecks in the infrastructure space, which should help revive several stalled projects, added report.