1:2 Bonus Issue: PSU Navratna Company Secures Multiple Orders Worth Rs 235.46 Crore; DIIs Increase Stake in October, Stock Surges Over 340 Per cent in 2 Years!
The company’s shares have delivered an impressive return of over 125 per cent in the past 1 year only.
This Small-Cap Navratna PSU company has been awarded multiple projects with a combined value of approximately Rs 235.46 crore.
The first project involves constructing a multipurpose examination hall and innovation center at Mahatma Gandhi Kashi Vidyapith University in Varanasi, valued at Rs 44 crore. The second assignment includes repairs and renovations of the Panani Bhawan/academic block at Sampurnanand Sanskrit University, also in Varanasi, worth Rs 5 crore. Additionally, NBCC will undertake the renovation of the Power Grid Corporation of India Ltd.’s corporate office building located in Gurugram, Haryana, for Rs 186.46 crore.
NBCC (India) Ltd is a Government of India Navratna Enterprise under the Ministry of Housing and Urban Affairs. The company operates in three major segments: Project Management Consultancy, Engineering Procurement & Construction, and Real Estate.
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On Friday, the shares of NBCC (India) Ltd closed at around Rs 99.97 per share. The company’s current market capitalization stands at Rs 26,991 crore. The stock has delivered a multibagger return of over 125 per cent in just 1 year.
Furthermore, the Board of Directors of the Company, in its meeting held on October 9, 2024, allotted 90 crore (900,000,000) fully paid-up bonus Equity Shares with a face value of Rs 1 each. The bonus issue was in the ratio of 1:2, granting one new fully paid-up bonus equity share of Rs 1 for every two existing fully paid-up equity shares of Rs 1 held by shareholders as of the record date, Monday, October 7, 2024.
As per the Quarterly Results, in the first quarter of FY25, NBCC (India) Ltd recorded a revenue of Rs 2144 crore compared to Rs 1918 crore. The operating profit for Q1 FY25 stood at Rs 92 crore. The net profit for Q1 FY25 was Rs 107 crore compared to Rs 77 crore. Looking at the annual performance, the company generated a revenue of Rs 10433 crore in FY24, compared to Rs 8876 crore in FY23. The operating profit for FY24 was Rs 517 crore, with a net profit of Rs 414 crore compared to Rs 278 crore.
Regarding the shareholding pattern, the promoters own 61.75 per cent of the company, while public or retail investors hold 25.05 per cent. Foreign Institutional Investors (FIIs) and Domestic Institutional Investors (DIIs) own 4.05 per cent and 9.13 per cent, respectively. DIIs have increased their stake from 9.10 per cent to 9.13 per cent in October 2024.
Investors must keep this stock on their radar.
Disclaimer: The article is for informational purposes only and not investment advice.