J Kumar's phenomenal surge in volumes

J Kumar Infraprojects is on a roll today! The company has shown a whopping over 23 times surge in volumes! From a two-week average volume of around 2500 shares, today morning it has clocked 60,000 shares volume. The stock price is up almost 6% at Rs.293.20 and this is after surging over 11% intra day to Rs.310.

The stock price has surged on the back of a report put out by foreign brokerage, CLSA. It has maintained its “buy” rating on the stock and has set the target price at Rs.425.

The reason for this optimism – it has learnt that the company is set to receive some huge awards from the Mumbai Metro Line 3 project. These are to be awarded either this month or by April. Though L&T is stated to be the biggest beneficiary, J Kumar too might corner some 30% of the total orders.

CLSA has said that when this order comes through, it would be a “game changer” for J Kumar and its order book could more than double.