NBCC shares gain on 251% rise in FY24 business growth

Shares of NBCC India rose nearly 10% in the afternoon session today after the govt-owned civil construction firm said it has secured record new works of Rs 23,500 crore on consolidated basis and Rs. 18,400 Crore on standalone basis. This is compared to Rs 6,700 crore (Consolidated basis) and Rs. 4,225 Crore (standalone basis) in the preceding FY.

The Navratna PSU stock gained 9.58% to Rs 136.65 in the afternoon session today. Shares of NBCC have zoomed 257% in a year and gained 66.46% in 2024. However, the multibagger stock saw high volatility with a beta of 1.1 in the last one year.

In terms of technicals, the relative strength index (RSI) of the NBCC stock stands at 48.8, signaling it's trading neither in the overbought nor in the oversold zone. NBCC shares are trading higher than the 5 day, 10 day, 20 day, 100 day, 150 day, 200 day but lower than the 50 day moving averages.

In the current session, market cap of the firm rose to Rs 24,057 crore.

Total 9.02 lakh shares of the firm changed hands amounting to a turnover of Rs 11.68 crore on Tuesday.

The company mentioned the below as major business secured in FY2023-24:

 1.Additional FAR works in Amrapali worth approximately Rs. 10,000 crore.

2.First Re-development project out-side of Delhi i.e; Kerala State Housing Board (KSHB) Project valuing Rs. 2,000 Crore.

3. Diversification into Agri-infrastructure Sector through construction of grain storage under “World’s Largest Grain Storage Plan” with an approximate value of Rs 1,500 Crore.

4. Redevelopment and modernisation of Government of India Presses through selffinancing model at Mayapuri, Rashtrapati Bhawan, Nasik & Kolkata, valuing Rs. 750 Crore.

5. Various infrastructure works of SAIL Bhilai, Bokaro, Durgapur & Burnpur valuing Rs. 580 Crore.

6.NIT Sikkim works valuing Rs. 560 Crore.

7.Construction work of Jawahar Navodaya Vidyalaya (JNV) at various locations of Odisha, Bihar, Jharkhand, NER, UP & Delhi valuing Rs. 346 Crore.

8. Other works secured are for Paradip Port Authority (PPA), Indian Medical Association (IMA), Khadi Village Industrial Commission (KVIC), NIFT Varanasi, Institute of Chartered Accountants of India (ICAI), PWD Puducherry, etc.

9. MoUs signed with BHEL(land monetisation), HUDCO, DMRC& Institute of Company Secretaries of India(ICSI). 

NBCC reported a 60.2% rise in consolidated net profit to Rs 110.7 crore in the third quarter of this fiscal against a profit of Rs 69.1 crore in the year-ago period. Revenue climbed 13% to Rs 2,412.6 crore during the December quarter of 2023-24 financial year from Rs 2135 crore in the corresponding period of the previous year.

NBCC (India) Limited provides value added services. The company operates through three segments: Project Management Consultancy (PMC), Real Estate Development, and Engineering Procurement and Construction (EPC). PMC segment is engaged in civil construction projects, infrastructure works for the national security, infrastructure projects for the civil sector, and project implementation for Pradhan Mantri Gram Sadak Yojna (PMGSY) and developmental work in Northeastern Region.