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    This RK Damani stock jumped 4% today; here's why

    Synopsis

    Considering the high levels of inflation on the back of a falling rupee and expensive crude, the rate hike was on the cards and it is expected that more companies will increase the cost of their services.

    This RK Damani stock jumps 4%; here's whyAgencies
    New Delhi: Shares of Blue Dart Express, a key holding in Radhakishan Damani's portfolio, jumped about 4% during the early trade on Thursday after the company announced price hikes.

    In a media release, the company announced that it will be increasing its general price increase (GPI) with effect from January 1, 2023. The average shipment price will increase by 9.6%, depending upon the shipping profile.

    The company, in the release, added that the customers signing up from 1 October 2022 to 31 December 2022 will not be impacted by the price increase.

    Following the announcement, shares of Blue Dart Express surged about 4% to Rs 8,881, before pairing gains to trade at Rs 8,738.85 around 10.35 am. The scrip had settled at Rs 8,576.20 at the end of the previous session.

    In an exchange filing, Blue Dart said it adjusts prices annually, taking into account inflation, currency dynamics, fuel cost instabilities, growing regulatory costs and other mandatory costs.

    Considering the high levels of inflation on the back of a falling rupee and expensive crude, the rate hike was on the cards and it is expected that more companies will increase the cost of their services.

    Seasoned investor Radhakishan Damani, through his investment arm Bright Star Investments, owned 3.31 lakh equity shares or a 1.4% stake in the company as of June 30, 2022. His stake in the company is worth Rs 290 crore.

    Kotak Securities, in its report, rolled out on July 29, had a buy call on the company with a target price of Rs 9,800 after it reported a strong performance in the first quarter of the current fiscal.

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    (What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2024 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)

    Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.

    Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

    ...more
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