NBCC stock jumps nearly 6% to new 52-week high on ₹1,500 crore order win
Shares of NBCC (India), a state-owned construction firm, jumped 5.6% in early trade on Thursday to hit a fresh 52-week high of ₹84.75 apiece after the company bagged an order worth ₹1,500 crore. On Wednesday, the company informed investors through an exchange filing that it had received the work order from the National Cooperative Development Corporation (NCDC) and Primary Agriculture Cooperative Society (PACS) in various states.
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The order is for the construction of 1,469 warehouses and other agri-infrastructure under the World’s Largest Grain Storage Plan in the cooperative sector at various locations across India.
This year, the company secured substantial orders, including a noteworthy contract awarded in May worth ₹749.28 crore by the Ministry of Housing and Urban Affairs (MOHUA) for the development of Government of India presses located at Mayapuri, Rashtrapati Bhawan (Delhi), Nashik, and Kolkata.
Additionally, in March, the company secured a work order from the Government of Puducherry valued at ₹500 crore for the construction of a government medical college and hospital at Karaikal in Puducherry.
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Established in 1960 as the construction arm of the Government of India to execute civil engineering projects for the state governments, various central government ministries, and public and private sectors, it achieved the status of ‘Navratna’ company in 2014.
The company’s areas of operation encompass three primary segments: project management consultancy (PMC), real estate development, and EPC contracting. The PMC accounts for 93% of NBCC’s annual revenue, with the remainder coming from RED and EPC, which account for 4% and 3%, respectively, its website shows.
The company’s shares this year so far have risen nearly 115%. Following three consecutive months of lacklustre performance from December to February, the stock made a strong comeback. Over the next nine months, it recorded gains in eight of them, with July standing out as the biggest monthly gainer at 16.54%.
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For the September-ending quarter (Q2FY24), the company posted a consolidated net profit of ₹82 crore, compared to a net profit of ₹98 crore in the corresponding quarter of last year. It posted a net profit of ₹77 crore in the preceding June quarter.
Revenue from operations was ₹2,053 crore in Q2 FY24, compared to ₹2,136 crore in a similar quarter last fiscal. The operating profit of the company came in at ₹96 crore in Q2, an increase of 9% when compared to ₹88 crore in the year-ago quarter.
At 12:15 PM, the stock was trading with a gain of 3.87% at ₹83.25 apiece.
Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.
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Published: 14 Dec 2023, 12:55 PM IST
