Rakesh Jhunjhunwala's mid-cap realty stock jumps more than 100 per cent in six months; board has authorized the demerger!
Company to demerge hospitality business, technical analysis suggests strong upside potential. A must stock to watch!
DB Realty's board has authorised the demerger of its hospitality business in principle. This business news has caused a 3.09 per cent increase in the stock price today.
Corporate Restructuring
The proposal to demerge DB Realty's hospitality business, which includes hotel assets and operations such as Goan Hotels & Realty Private Limited (a wholly owned subsidiary of the company), BD and P Hotels (India) Private Limited (a subsidiary of the company), and Bamboo Hotel and Global Centre (Delhi) Private Limited (an associate of the company), was considered and approved in principle during the company's board meeting today.
A differentiated strategy to capitalise on the enormous potential of the Indian hospitality sector will be made possible by the demerger, which will also draw in a specific group of investors, partners, collaborators, and leadership talent who are all focused on the hospitality industry. Additionally, it will guarantee that the real estate industry doesn't alter.
Following the process, it is planned for the Resulting Company's equity shares to be listed on the BSE Limited and the National Stock Exchange of India Limited. The Company's shareholders will own a significant portion of the Resulting Company, with the Company holding the remaining shares in accordance with their shareholding in the Company. In order to carry out the aforementioned plan, the Board will hire qualified legal counsel, registered valuers, and consultants; nevertheless, shareholder and regulatory clearances will also need to be obtained.
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Intraday Performance
DB Realty Ltd opened the trading day at Rs 267.95 and closed at Rs 275.15, the current market price (CMP), after hitting highs of Rs 284.8 and lows of Rs 257.65. There was a 2.99 per cent positive change in the stock from the previous closure of Rs 267.15. The 52-week high and low of the company's stock, which is Rs 55.1 and 284.8, respectively, show swings within a notable range. DB Realty Ltd., which has a market value of Rs. 13833.31 crore, shows promise for future movement and durability in today's trading session.
With over two years of consolidation perhaps coming to an end in August, the technical analysis presents a strong long consolidation breakout possibility for the stock. When the stock reaches the 10-week exponential moving average (EMA) or retraces to about Rs 222, traders may think about entering the market. Furthermore, the notable uptick in volume activity highlights the long-term optimistic attitude, signalling increased investor interest and possible upward momentum.
In addition, the stock performs 2.5 times better than the Nifty 500 index, demonstrating strong relative strength. This implies that, in contrast to the overall market, the stock is resilient and has room to rise. When analysing the stock's performance over different time periods, it shows remarkable gains: 53.43 per cent over the last three months, 285.98 per cent over the previous year, and a multibagger return of 1376.68 per cent over the previous three years. These gains suggest that the market is still bullish and that there are good chances for future price growth.
Disclaimer: The article is for informational purposes only and not investment advice.