Shares of Subros Ltd. were locked in a 20% upper circuit on Tuesday after Minister for Road Transport and Highways Nitin Gadkari said air-conditioned cabins for trucks will soon be made mandatory.
The plan had been in the pipeline for a long time but was stalled due to reasons like higher costs, PTI reported Gadkari as saying at an event organised by Mahindra Logistics Ltd. on Monday.
The minister's comment pushed shares of the automotive air-conditioner manufacturer to their highest level in over 60 months, since Jan. 15, 2018.
Shares of Subros surged 20% to Rs 434.1 apiece, compared to a 0.28% decline in the NSE Nifty 50 as of 10:12 a.m. It rose the most in over 46 months since Aug. 13, 2020.
The average traded volume so far in the day stood at 19.9 times its monthly average. The relative strength index was at 86, implying that the stock may be overbought.
Out of the four analysts tracking the company, two maintain a 'buy' rating and two recommend a 'hold' on the stock, according to Bloomberg data. The average 12-month consensus price target implies a potential downside of 20.5%.
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