Shares of Kansai Nerolac Paints Ltd. jumped nearly 10% to a 52-week high on Wednesday after it approved a proposal for monetisation of its idle land parcels not being put for productive use.
The board of directors has approved a proposal for entering into an agreement for sale with Aethon Developers Pvt. for the sale of the parcel at Lower Parel in Mumbai for Rs 726 crore, according to an exchange filing on Tuesday.
Aethon is a subsidiary of Runwal Developers Pvt. "The sale is subject to completion of procedures and approvals," it said.
On the NSE, Kansai Nerolac's stock rose as much as 9.85% during the day to Rs 357.30 apiece, the highest since Dec. 1, 2022. It was trading 4.75% higher at Rs 340.75 apiece compared to a 0.62% decline in the benchmark Nifty 50 as of 10:39 a.m.
It has risen 16.33% on a year-to-date basis. The total traded volume so far in the day stood at 38 times its 30-day average. The relative strength index was at 66.77.
Eleven out of the 20 analysts tracking Kansai Nerolac have a 'buy' rating on the stock, three recommend 'hold' and six suggest 'sell', according to Bloomberg data. The average of 12-month analyst price targets implies a potential upside of 2.5%.
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