announcement of securing a substantial order worth ₹15,000 crore. This major contract, awarded by the Srinagar Development Authority, will involve the development of a satellite township spanning 406 acres at Rakh-e-Gund Akshah in Bemina, Srinagar. This development has generated considerable investor enthusiasm, resulting in a notable increase in NBCC shares.
The remarkable rise in NBCC shares reflects the positive market response to this significant contract win. Investors have shown increased confidence, leading to a surge in the stock price.
NBCC Shares Climb as Project Details Emerge
As of 11:04 a.m., NBCC shares had surged by up to 9.66%, reaching their highest level since July 31. The stock was trading 8.2% higher at ₹182.88 each, outperforming the NSE Nifty 50 index, which gained 1%. The impressive rise in NBCC shares reflects the market’s positive reaction to the significant order win and investor confidence in the company’s future prospects.
The stock has demonstrated remarkable growth over the past year, with a 125% increase year-to-date and an impressive 256.6% rise over the last 12 months. On the trading front, the total volume for the day was 1.08 times its 30-day average, and the relative strength index stood at 55.66. According to Bloomberg data, all six analysts covering the stock have a ‘buy’ rating. However, the average 12-month price target indicates a potential downside of 3.8%, suggesting some caution among analysts despite the recent surge.
NBCC Shares Soar on Additional Contract Award
In addition to the ₹15,000 crore order, NBCC’s stock rose by over 8% in intra-day trading on Monday, spurred by another significant development. The company’s subsidiary, HSCC (India) Limited, secured a substantial order worth ₹411.45 crore from the Medical Education & Ayush Department of the Government of Maharashtra. This contract involves constructing a new government medical college with a capacity for 100 students and a 430-bed hospital in Buldhana, Maharashtra.
Following the announcement, NBCC shares climbed as much as 8.1%, reaching a daily high of ₹188.80. This brings the stock close to its recent peak of ₹198.25, achieved on July 9, 2024. Over the past year, the stock has surged by 344% from its 52-week low recorded on July 28 last year, highlighting the significant growth trajectory of NBCC shares.
The stock’s performance in 2024 has been particularly strong, with a rise of over 303% over the past year and a notable increase of 131% year-to-date. The stock has shown consistent strength, advancing in six of the seven months this year. July alone saw a gain of 17.5%, continuing a four-month streak of increases that includes 10% in June, 2.2% in May, and 17.5% in April. March 2024 was the only exception with a 12% decline, while earlier in the year, the stock rose by 4.5% in January and 58.7% in February.
Financial Performance Boosts NBCC Shares
On the financial front, NBCC has reported robust performance, further supporting the rise in NBCC shares. The company’s profit increased by 24.6% year-on-year to ₹141.5 crore for the March quarter of FY24, up from ₹113.6 crore in the same period the previous year. Revenue for Q4FY24 surged by 43% annually to ₹4,025 crore, compared to ₹2,814 crore in Q4FY23. The company’s operating earnings, measured by EBITDA, more than doubled to ₹240.2 crore in Q4FY24 from ₹104.5 crore in Q4FY23. The EBITDA margin also saw a significant improvement, rising by 230 basis points to 6% in Q4FY24 from 3.7% in Q4FY23.
NBCC (India) remains a prominent player in the construction sector, offering a comprehensive range of services including project management consultancy, real estate development, engineering procurement, construction, and civil engineering. The company also specializes in water treatment plants, water supply networks, and solid waste management, further solidifying its position in the industry.
In summary, the recent contract wins and strong financial performance have contributed to the notable rise in NBCC shares, reflecting the market’s positive outlook on the company’s future growth and development prospects.
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