Shares of steelmaker Gallantt Ispat Ltd. snapped their three-day losing streak after the company clarified that only a small part of its land will be acquired for a metro rail project in Uttar Pradesh.
Shares jumped as 5 percent on Monday, after three days of losses eroded nearly Rs 490 crore, or one-third, of its market capitalisation. Trading volume was 17.6 times the 20-day average.
The stock trades at 15 times its trailing 12-month earnings per share, lower than 24.5 times for its peers, according to Bloomberg. It has fallen 48 percent so far this year and has declined 59 percent in the past 52 weeks.
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Its momentum indicator Relative Strength Index stands at 14, indicating that the stock may be oversold.
The Kolkata-based company had said on April 5 that the newly elected Uttar Pradesh government may acquire its land in Gorakhpur for a proposed metro rail project. Its shares fell more than 40 percent after the announcement.
The company on Monday clarified to Bloomberg that it expects only 1 percent of its land bank in the state to be acquired for the metro project.
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