Rs 6,301.08 crore order: These 2 multibagger civil construction companies receives mega order from Brihanmumbai Municipal Corporation!
The order book value of both companies is 4 times greater than their current market capitalization.
Two leading civil construction companies; NCC Ltd & J. Kumar Infraprojects Ltd formed a joint venture (JV) and have been awarded the contract relating to the design, construction and operation of a twin tunnel from Film City Goregaon to Khindipada (Amar Nagar) Mulund including a box tunnel at Film City, Electrical, Mechanical and associated works by Brihanmumbai Municipal Corporation.
The value of the contract awarded is Rs.6,301.08 Crores (net of GST) and in terms of the contract conditions the project will be executed by a Special Purpose Vehicle to be formed for this purpose. The sharing ratio of the parties in the JV is NCC (51 per cent i.e., Rs 3,213.55 crore) & JKIL (49 per cent i.e., Rs 3,087.53 crore). The construction period is 5 years and operation and maintenance of the project is for 10 years.
About NCC Ltd: NCC Limited is a Mid-Cap company having a market cap of Rs 9,450 crore that undertakes turnkey EPC contracts and BOT projects on a public-private partnership basis. The company’s order book stands at Rs 50,244 crore as of June 30, 2023. On Friday, shares of NCC Ltd gained 0.54 per cent to Rs 150.30 per share with an intraday high of Rs 151.85 and an intraday low of Rs 146.10. The stock is up by 45 per cent in 6 months and gave multibagger returns of over 100 per cent in 1 year.
About J. Kumar Infra Projects Ltd: J Kumar Infraprojects Ltd is a Small-Cap company having a market cap of over Rs 3,000 crore that is engaged in the business of execution of contracts for various infrastructure projects. As of March 31, 2023, the company has a total order book of Rs 11,854 crore. On Friday, shares of J Kumar Infraprojects Ltd surged 2.45 per cent to Rs 403.55 per share with an intraday high of Rs 411.10 and an intraday low of Rs 394.50. The stock is up by 70 per cent in 6 months and gave multibagger returns of over 300 per cent in 3 years.
The order book value of both companies is 4 times greater than their current market capitalization. Do you own any of these multibagger civil construction stocks in your portfolio? Do let us know in the comment section below
Disclaimer: The article is for informational purposes only and not investment advice.
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