Shares of Kothari Industrial Corporation Limited rallied nearly 13% during Thursday’s intraday trading session. The recent surge in the stock came as the overall market sentiment remained muted on September 10. Multiple order wins, strong income growth, and logistics acquisition are some of the key factors supporting the Chennai-based firm’s outlook.
The 13% rally in Kothari Industrial Corporation has come after the stock has declined close to 26% since the beginning of this year, and around 73% in one year.
Why is Kothari Industrial Corporation stock rising today?
Bullish momentum behind Kothari Industrial Corporation stock came as multiple developments linked to the company fuelled investors sentiment. “Kothari Industrial Corporation shares extended gains on Thursday, trading near ₹151, as a steady stream of government order wins lifted sentiment,” stated Khushi Mistry Research Analyst at Bonanza, while highlighting that the recent order wins had taken the company’s disclosed order book past ₹35 crore.
The recent rally in the company scrip sits against a widened ₹31-crore net loss and auditor qualifications on unverified balances, keeping risk-reward finely balanced, warned Mistry.
Kothari Industrial Corporation stock prediction
“Kothari Industrial Corp. has shown a strong reversal from ₹130–135 support with a sharp volume- backed breakout above short-term EMAs. RSI has improved above 55, confirming momentum. Fresh entry can be considered near ₹150–153, with SL ₹140 and targets ₹170–180, while ₹160 acts as immediate resistance,” stated Virat Jagad Sr. Technical Research Analyst at Bonanza.
Kothari Industrial Corporation share price trend
The stock was trading 13% higher at ₹151.25 per share on BSE with a market capitalisation of ₹1,633.83 crore at 11:55 am on Thursday. The company scrip had touched an intraday high of ₹159.90 per share and an intraday low of ₹138.25 per share. Its return on equity (ROE) stood at -63.24%. The company stock touched its 52-week high of ₹610.45 per share and a 52-week low of ₹128.90 per share.
Order wins
The company, on September 3, announced securing two orders related to serving of breakfast. The company “received a Letter of Acceptance (“LOA”) for providing food services under the PerunthalaivarKananjar Morning Breakfast Scheme to school children”.
The diversified Chennai-based conglomerate operates across agriculture, manufacturing, technology, and consumer retail stores. Earlier, the company had also secured LoA worth over ₹14.5 crore from Indian Railways’ Integral Coach Factory and Tamil Nadu municipalities, followed by ₹5.35-crore and ₹4.15-crore breakfast-scheme contracts.
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