Rs 70,000 crore order book: This multibagger civil construction company bags orders worth Rs 23,500 crore in FY24; a growth of over 250 per cent!

The stock gave multibagger returns of 250 per cent in just 1 year whereas BSE Sensex is up by 23 per cent.

National Buildings Construction Corporation Ltd or NBCC (India) Limited achieved a record-breaking performance in FY 2023-24. The company secured new business of Rs 23,500 crore on a consolidated basis and Rs 18,400 crore on a standalone basis, reflecting a massive growth of over 250 per cent compared to the previous fiscal year. This surpasses the previous year's record of Rs 6,700 crore (consolidated basis) and Rs 4,225 crore (standalone basis). Additionally, NBCC hit an all-time high in sales by selling commercial real estate inventory at the World Trade Centre, New Delhi for Rs 6,480 crore, registering a rise of more than 208% compared to sales achieved in the last FY.

In FY 2023-24, NBCC secured a significant amount of new business totalling Rs 23,500 crore. This included major projects like additional Floor Area Ratio (FAR) works in Amrapali for Rs 10,000 crore, their first redevelopment project outside of Delhi for the Kerala State Housing Board (KSHB) valued at Rs 2,000 crore, and diversification into the agri-infrastructure sector through grain storage construction under the "World's Largest Grain Storage Plan" at an approximate cost of Rs 1,500 crore.

Additionally, they secured projects for the redevelopment and modernization of Government of India Presses (Rs 750 crore), various infrastructure works for Steel Authority of India (SAIL) (Rs 580 crore), National Institute of Technology Sikkim (NIT Sikkim) (Rs 560 crore), and Jawahar Navodaya Vidyalaya (JNV) schools across different locations (Rs 346 crore). NBCC also signed Memorandums of Understanding (MoUs) with organizations like Bharat Heavy Electricals Ltd (BHEL) for land monetization, Housing and Urban Development Corporation Ltd (HUDCO), Delhi Metro Rail Corporation (DMRC), and the Institute of Company Secretaries of India (ICSI).

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Despite facing the COVID-19 pandemic for 2 out of the last 3 years, NBCC has achieved impressive results. They've completed 19,000 units and are committed to delivering another 19,000 by March 2025. In the Amrapali project alone, NBCC along with Aspire sold over 6,300 units for a total value exceeding Rs 3,650 crore. They've also seen significant growth in commercial real estate sales, reaching approximately Rs 6,500 Crore this year compared to Rs 2,100 crore last year.

Overall, NBCC has sold over 30 lakh sq. ft. of commercial property through e-auctions, generating a total sale value of over Rs 12,100 crore. The progress on their projects is rapid, with a completion rate exceeding 95 per cent for some. The company has secured new projects worth approximately Rs 9,800 Crore in the last financial year, reflecting a substantial growth of 62 per cent compared to the previous year.

NBCC (India) Limited 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. The company has a market cap of over Rs 23,000 crore.

Order Book: The company's order book as of March 31, 2024 crosses Rs 70,000 crore.

Results: According to the Quarterly Results, the net sales increased by 13 per cent to Rs 2,413 crore and the net profit increased by 61 per cent to Rs 114 crore in Q3FY24 over Q3FY23. According to nine-month results, the net sales increased by 9 per cent to Rs 6,384 crore and the net profit increased by 104 per cent to Rs 139 crore in 9MFY24 over 9MFY23. In its annual results, the net sales increased by 13.83 per cent to Rs 8,754.4 crore and the net profit increased by 16.44 per cent to Rs 277 crore in FY23 over FY22.

The company has been maintaining a healthy dividend payout of 44.4 per cent. The stock gave multibagger returns of 250 per cent in just 1 year whereas BSE Sensex is up by 23 per cent. Investors should keep an eye on this stock.

Disclaimer: The article is for informational purposes only and not investment advice.