Rs 70,000 crore order book: LIC-backed multibagger civil construction company bags new orders worth Rs 855.06 crore from Government of Maharashtra
The stock gave multibagger returns of 330 per cent in just 1 year whereas BSE Sensex is up by 23 per cent.
NBCC (India) Ltd bags new orders worth Rs 855.06 crore from the Government of Maharashtra. Here are the details:
Order 1: Hindustan Steelworks Construction Limited (HSCL), a subsidiary of NBCC (India) Limited, has secured two new construction projects. The first project involves building a new government medical college with a capacity of 100 students and a 430-bed hospital in Parbhani for the Medical Education & Ayush Department of the Maharashtra government. The second project entails constructing a residential hostel for doctors and interns at the Shri Chhatrapati Shivaji Maharaj Sarvopchar Rugnalaya in Solapur. The combined estimated value of these projects is approximately Rs. 443.61 crores.
Order 2: HSCC (India) Limited, another wholly owned subsidiary of NBCC (India) Limited, has also been awarded a significant construction contract. The project entails building a new government medical college with a capacity of 100 students and a 430-bed hospital in Buldhana. The client for this project is the Medical Education & Ayush Department of the Maharashtra government. The estimated value of this contract is approximately Rs. 411.45 crores.
Today, shares of NBCC (India) Ltd gained 1.4 per cent to an intraday high of Rs 190.2 per share from its previous closing of Rs 187.60. The company has a market cap of over Rs 33,000 crore and has been maintaining a healthy dividend payout of 35 per cent.
Earlier, NBCC (India) Limited was awarded two new contracts with a combined value of Rs 72.15 crore. The first project involves setting up solar/electric water heating systems in 331 Jawahar Navodaya Vidyalayas across India for Navodaya Vidyalaya Samiti, with an approximate value of Rs 36.15 crore. The second project is a project management consultancy (PMC) role for supervising the construction and development of an incubation center at the National Institute of Technology (NIT) Patna (Bihar Campus) for a value of Rs 36.00 crore.
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About NBCC (India) Ltd
NBCC (India) Limited, a prominent government-owned construction company under India's Ministry of Housing and Urban Affairs, offers a comprehensive suite of services across three key segments. Their project management consultancy (PMC) arm tackles civil construction projects for various sectors including residential, commercial, healthcare, and educational institutions. Additionally, they specialize in engineering, procurement, and construction (EPC) for complex structures like high-rise chimneys and cooling towers. Finally, NBCC (India) Limited is a major player in real estate development, building residential townships, apartments, commercial office spaces, and shopping malls. This diversified approach has positioned them as a leading construction enterprise in India.
Results
According to the Quarterly Results, the net sales increased by 43.05 per cent to Rs 4.024.50 crore and the net profit increased by 24.35 per cent to Rs 141.43 crore in Q4FY24 over Q4FY23. According to half-yearly results, the net sales increased by 30.68 per cent to Rs 6,437.11 crore and the net profit increased by 37.76 per cent to Rs 255.03 crore in H2FY24 over h2FY23. In its annual results, the net sales increased by 17.53 per cent to Rs 10,432.64 crore and the net profit increased by 49.54 per cent to Rs 414.27 crore in FY24 over FY24.
Order Book: The company's order book as of March 31, 2024, crosses Rs 70,000 crore.
As of June 2024, Life Insurance Corporation of India (LIC) owns a 5.96 per cent stake in the company. The stock gave multibagger returns of 330 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.
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