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Home / Markets / Stock Markets /  Rakesh Jhunjhunwala porftolio: Multibagger realty stock hits upper circuit, surges 95% in a month
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Shares of DB Realty Ltd hit upper circuit level on the BSE in Thursday's trading session by rising over 5% to 96 apiece. The multibagger stock has rallied over 95% in a month whereas it has surged over 256% in the last six months. From trading over 18 per share level in February 2021, the realty stock has skyrocketed more than 403% in a year's period.

“DB Realty stock is trading under very high speculations though lesser volume. The fundamentals are weak, not supporting the price movement. However, on technical setup, the realty stock may touch the level of 100 with this momentum and high volatility. Investors may remain cautious and try to utilise this opportunity to book their positions," said Ravi Singh, VP and Head of Research at Share India Securities.

Godrej Properties on Thursday said is evaluating potential investment in DB Realty in form of convertible warrants and the setting up of a special purpose vehicle as a joint venture with DB Realty Limited to undertake slum rehabilitation and MHADA redevelopment Projects.

Last month, Mumbai-based DB Realty had informed that it is seeking shareholders’ approval for its proposal to raise 563 crore by issuing warrants to promoters and investors. 

“DB realty is gaining momentum on the back of news that the company is considering for fundraising plans. We have a very bullish view on the realty sector but there are some concerns regarding the financials of the DB realty & discomfort in terms of valuations after a steep rise, therefore, I would like to stick with Sobha, Prestige, Oberoi realty in this space," said Santosh Meena, Head of Research, Swastika Investmart Ltd.

Technically, the stock has come above the important resistance of 86 where 116/136 are the next important resistance levels. On the downside, 79 will be the important support level, below this, one can expect any major profit booking, Meena added.

As per the recent BSE shareholding pattern, Rakesh Jhunjhunwala's wife Rekha Jhunjhunwala holds 2.06% stake in DB Realty as of December 2021.

The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.

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