NESCO up 20%; Bhavin Shah eyes target of Rs 900

Bhavin Shah, CEO, Equirus Securities in an interview with CNBC-TV18 recommended NESCO. He says, "For people in Mumbai you probably might have heard of Bombay Exhibition Centre. Nesco owns Bombay Exhibition Centre and a land of 60 plus acres around it on the Western Express Way.

They have two main business, one is the exhibition centre, and second is IT parks where they ran space. The story is not typical real-estate, this is more of a story of rental income from exhibitions as well as the office facilities that they rent out. Their clients include the company like TCS.

They have tremendous upside potential in terms of developing more assets, both on the exhibition side as well as on the IT park side. And that will lead to a huge growth in the rental income over coming years.

We believe that the stock is worth more than Rs 900 compared to where it is trading around Rs 530 odd. That is really why we like it. Bombay Exhibition Centre is a premier exhibition facility in India and the second largest exhibition facility. It is clearly a prime location for exhibition in Mumbai. So that is the story behind Nesco."

NESCO has touched an intraday high of Rs 639.70 and an intraday low of Rs 527.15. At 15:27 hrs the share was quoting at Rs 639.70, up Rs 106.60, or 20.00%.
 
There were pending buy orders of 23,415 shares, with no sellers available.
 
It was trading with volumes of 623,460 shares, compared to its 5-day average of 1,466 shares, an increase of 42,439.57%.

In the previous trading session, the share closed up 0.39% or Rs 2.05 at Rs 533.10.
 
The company touched its 52-week high Rs 777.45 and 52-week low Rs 417.10 on 15 Jul, 2010 and 10 Feb, 2011, respectively.
 
Currently, it is trading -17.72% below its 52-week high and 53.37% above its 52-week low.