Nesco Share Price Surges As Company Bags Contract With Rs 300 Crore Revenue Potential
Nesco share price rose as much as 3.7% at Rs 1,007 apiece.
Nesco Ltd.'s share price rose on Wednesday after the company secured a contract from National Highways Logistics Management Ltd. that has a revenue potential of Rs 300 crore annually.
The company was declared the highest bidder for developing, operating and maintaining of wayside amenities on the Raipur-Visakhapatnam Expressway on a lease basis, according to an exchange filing.
The period of lease will be 30 years with first right of refusal for extending the lease agreement for another 30 years. The project has to be completed within 10 months.
The total cost that Nesco has to incur for development of wayside amenities is estimated at Rs 50 crore for each of the four sites.
The estimated annualised revenue from these sites is Rs 300 crore from year four of operations, the filing said.
Nesco Share Price Movement
Nesco share price rose as much as 3.7% at Rs 1,007 apiece. It was trading 1.5% higher as of 2:30 p.m., compared to a flat Nifty 50.
The stock has risen 13.7% in the last 12 months.
The one analyst tracking the company recommended a 'buy' rating, according to Bloomberg data, with price target implying a potential downside of 2.2%.
