NESCO share price gains 5% in trade; here's what's boosting rally in stock

NESCO Ltd shares advanced 5.3 per cent in Tuesday's trade on BSE, logging an intraday high at Rs 1,048 per share which was 3 per cent away from its 52-week high of Rs 1,081 per share. The buying in the stock came after the company emerged as the highest bidder for developing Wayside Amenities in the south zone on Bengaluru Chennai Expressway Corridor.

 

Around 10:42 AM, NESCO share price was up 4.03 per cent at Rs 1,035.4 per share on BSE. In comparison, the BSE Sensex was up 0.34 per cent at 78,229.42. The market capitalisation of the company stood at Rs 7,299.65 crore. The 52-week low of the stock stood at Rs 755.10 per share.

 

Under the contract, NESCO will develop, operate and maintain Wayside Amenities in the South Zone of Bengaluru Chennai Expressway Corridor (Phase II) section on lease basis comprising of three sites.

 

"We are pleased to inform you that National Highways Logistics Management Limited has declared the Company as Highest Bidder and has accepted our proposal for Developing, Operating and Maintaining of Wayside Amenities in South Zone on Bengaluru Chennai Expressway Corridor (Phase II) Section on Lease Basis," the filling read. 

 

The contract has been awarded by National Highways Logistics Management Limited and has to be completed within 10 months of the appointed date. 

 

The total cost the company has to incur for the development of Wayside Amenities is estimated at Rs 75 crore for each of the 3 sites. The estimated annualised revenue from 3 sites is Rs 350 crore from the fourth year of operations. 

 

NESCO is a prominent Indian company based in Mumbai, primarily engaged in electrical distribution, infrastructure, engineering services, and real estate development. The company is also known for its significant presence in real estate, with assets like the NESCO IT Park, a commercial complex in Mumbai catering to IT and other industries, and the NESCO Arena, a venue for events and exhibitions. 

 

The company’s diverse portfolio includes engineering services and infrastructure projects, alongside its ventures into commercial real estate. NESCO is involved in manufacturing electrical equipment, such as transformers, distribution panels, and other products related to the power sector. It engages in real estate development, focusing on both commercial and industrial properties.

 

In the past one year, NESCO shares have gained 18.1 per cent against Sensex's rise of 8.2 per cent.