Jhunjhunwala makes Rs 333 crore from this multibagger PSU as stock rises 24% in a month

Renowned Dalal Street investor Rekha Rakesh Jhunjhunwala has been able to mint Rs 333 crore in a month from one of her portfolio holdings as the stock prices of the state-run construction company surged more than 24 per cent during the period under review. The stock is NCC Ltd, which has remained in action lately.

Shares of NCC have surged more than 6.40 per cent to Rs 217.55 on Wednesday, against its previous close at Rs 204.45. The total market capitalization of the company stood close to Rs 13,500 crore. The stock has surged more than 24 per cent from its price at Rs 175 on February 28. However, the stock is still 40 per cent below its 52-week high of Rs 364.50.

Rekha Jhunjhunwala owned 7,83,33,266 equity shares or 12.48 per cent stake in the company as of December 31, 2024. In March 2025 so far, the value of her stake in NCC surged to Rs 1,704.14 crore, from Rs 1,370.83 crore, adding more than Rs 333.31 crore in her portfolio during the same period.

NCC reported a 12.5 per cent year-on-year (YoY) decline in net profit at Rs 193.2 crore for the quarter ending on December 31, 2024. The infrastructure company's revenue from operations increased 1.6 per cent YoY to Rs 5,344.5 crore for the quarter. Its Ebitda fell 16.6 per cent YoY to Rs 420.9 crore while the margins came in at 7.9 per cent for the quarter.

Post Q3 results, Analysts continue to have a mixed view on the stock. Antique Stock Broking has a target price of Rs 332 on the stock, while IIFL Securities gave it a target price of Rs 287. Nuvama Institutional Equities had a target price of Rs 282 on NCC. All three domestic brokerage firms suggested 'buy' the stock.

Axis Securities is also positive on the stock but its target price of Rs 213 for 3-6 months have already met. Axis was sworn by NCC's bidding pipeline across all segments and states, along with a diversified business portfolio across T&D, buildings, transportation, water & railways, irrigation, and mining.

NCC informed to receive two advance work orders worth a total of Rs 10,804.56 crore (excluding GST) from Bharat Sanchar Nigam Limited (BSNL) for the design, supply, construction, installation, upgradation, operation, and maintenance of the middle-mile network of BharatNet on Tuesday, March 2025.

NCC reported weak results for Q3FY25 as lingering effect of central & state elections and delayed payments from clients resulted in weak execution, said Centrum Broking adding that the order pipeline remains healthy and the company is likely to meet its target of Rs 20,000-22,000 crore order inflow in FY25. Centrum has a 'reduce' rating on NCC with a target price of Rs 247.

A day ago, NCC secured a Rs 1,480 crore order from Bihar government, which involved the redevelopment of the Darbhanga Medical College and Hospital, with construction set to be completed in 42 months and an additional 36-month Defect Liability Period. Despite a 25% decline in 2025, the stock's recent rise reflects positive sentiment around the company's strategic move.

NCC anticipates new opportunities in Andhra Pradesh for capital city development and has secured a new order for a river interlinking project, with expectations of more orders from this segment, said IDBI Capital, which downgraded its rating to 'hold', revising the target price to Rs 268, valued at 13 times FY27E EPS.

The company expects an additional order inflow of Rs 7,000- 9,000 crore for FY25 and has an L1 pipeline of nearly Rs 9,000 crore. The key catalyst for the stock remains improvement in execution and stability in EBITDA margins, IDBI Capital added.

Founded in 1978, NCC Limited is engaged in construction/project activities in the infrastructure sector. It specialises in turnkey engineering, procurement and deconstruction (EPC) contracts and build, operate and transfer (BOT) projects under Public-Private Partnership (PPP) models.