Navratna PSU stock rises 4% on Rs 560-crore order win; shares up 112% in three months

Shares of NBCC (India) Ltd have delivered 112% returns in the last three months. NBCC stock rose 4.24% to Rs 147.50 against the previous close of Rs 141.30 on BSE. The Navratna PSU stock has zoomed 201% in six months and 329% in a year.

Amid a stellar rally in the last one year, the NBCC stock has seen very less volatility with a beta of 0.8 during the period. In terms of technicals, the relative strength index (RSI) of the NBCC stock stands at 59.8, 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, 50 day, 100 day, 150 day, 200 day moving averages.

In the current session, NBCC shares rose 4.24% to Rs 147.50 against the previous close of Rs 141.30. Market cap of the firm rose to Rs 25,749 crore.

The stock rallied today after NBCC said it won an order worth Rs 560 crore for the construction of permanent campus of NIT Sikkim at Dung dung Khamdong, Gangtok, Sikkim.

Total 26.59 lakh shares of the firm changed hands amounting to a turnover of Rs 38.40 crore on Tuesday.

Nuvama Institutional Equities has downgraded the stock to hold from buy. It sees limited upside after a strong rally in the last three months.

“Factoring in improved order intake/margins and traction in real estate monetisation, we revise upwards P/E multiple to 40 times (25 times earlier). However, 115% run-up in the stock in the last three months leaves little room for upside. Hence, we downgrade the stock from ‘BUY’ to ‘HOLD’ with target price of Rs 143 (earlier Rs 76) as we rollover to Q3FY26E,” said Nuvama Institutional Equities.

Gaurav Bissa, VP, InCred Equities said, "NBCC had a very strong multiyear breakout above 60 levels which once crossed pushed the price towards Rs 150 levels. during this rise, it added strong volumes on the monthly charts which acted as fuel for a sharp rally. it is currently trading below its 2017 high of Rs 146. A monthly close above this level will result in a multiyear swing breakout which can push it towards Rs 180-200 levels. Investors who have bought the stock earlier are advised to hold their positions whereas fresh buying is advised only after breakout confirmation."

Abhijeet from Tips2trades said, "NBCC is sideways to bearish on the Daily charts with strong resistance at Rs 155. A daily close above this resistance could lead to a target of Rs 177. Strong support will be at Rs 120.75."

NBCC logged a 60.2% rise in consolidated net profit of Rs 110.7 crore in the third quarter of this fiscal against a profit of Rs 69.1 crore in the year-ago period.

Total revenue rose 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.

The EBITDA margin for Q3 came at 4.9% in Q3 compared to 4.5% in the year-ago period. EBITDA is earnings before interest, tax, depreciation, and amortisation.

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.

Disclaimer: Business Today provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions

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