NCC shares gain 5% on major order win

NCC Ltd shares rose 5% to an intraday high of Rs 208.60 after securing a Rs 1,480 crore order.NCC saw a major order win from the Bihar government. The contract involves 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.

Analysts covering NCC are mostly positive, with nine recommending a 'buy', two suggesting 'hold', and three advising 'sell'. The consensus indicates a potential 28% upside in the stock's value.

The total price for the contract is Rs 1480.34 crore (excluding GST). NCC said, "As per the company’s ‘Policy on Determination of Materiality of Events and Information’ orders/contracts valued at Rs 1,000 crore and more (excl. GST) are termed as major order."

Late investor Rakesh Jhunjhunwala's wife Rekha Jhunjhunwala owned 10.63% or 6.67 crore shares of NCC during the quarter ended December 2024.

The recent order wins for NCC highlight the compay's aim to fortify its positions in the construction sector. NCC's redevelopment project, classified as a 'major order,' aligns with its policy to prioritise significant contracts exceeding Rs 1,000 crore. The market response, as reflected in the stock price increases, indicates investor confidence in the strategic directions of the company. These developments are expected to have a positive impact on the company's long-term growth trajectories.

In terms of technicals, the relative strength index (RSI) of NCC stands at 58.4 signaling neither the stock is overbought or oversold on charts. The stock has a one-year beta of 1.9, indicating very high volatility during the period.

The construction of college is expected to be completed in three months.

"Pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, we are pleased to inform that, today the Company has received Letter of Acceptance dated 21st March 2025 from Bihar Medical Services & Infrastructure Corporation Limited for Redevelopment of Darbhanga Medical College & Hospital at Laheriasarai, Darbhanga," said NCC.

NCC Limited is engaged in construction/project activities in the infrastructure sector. The company is engaged in the infrastructure sector, primarily in the construction of industrial and commercial buildings, housing projects, roads, bridges and flyovers, water supply and environment projects, mining, power transmission lines, irrigation, and hydrothermal power projects, real estate development.