Rs 70,000 crore order book: LIC-backed multibagger civil construction stock in focus as company to increase the authorized share capital from Rs 200 crore to Rs 1,000 crore

The stock gave multibagger returns of over 300 per cent in just 1 year whereas BSE Sensex is up by 25 per cent. I

In a recent Board Meeting held on June 27, 2024, NBCC (India) Limited, a Navratna CPSE, made significant decisions that will shape its future operations and management. The Board approved an increase in the company's authorized share capital to Rs 1,000 crore, divided into 1,000 crore equity shares of Re 1 each, necessitating an alteration in the Memorandum of Association, pending shareholder approval. This move is aimed at enhancing the company's financial flexibility and capacity for future growth initiatives.

Additionally, the Board approved the appointment of Shri Saleem Ahmad as the Chief Financial Officer (CFO) and Key Managerial Personnel (KMP) of the company, effective from July 1, 2024, until a regular incumbent assumes the position of Director (Finance). This decision followed recommendations from the Nomination and Remuneration Committee and the Audit Committee, highlighting the company's commitment to robust governance and strategic financial management. The meeting, which began at 12:00 noon and concluded at 12:59 p.m., underscores NBCC's proactive approach to strengthening its corporate structure and readiness for future challenges.

Earlier, NBCC (India) Limited further expanded its business by securing a new Rs 100 crore project to act as Project Management Consultant (PMC) for the renovation and new construction of the RECIPMT Building in Hyderabad for REC Limited. This adds to the Rs 1,369.62 crore of orders recently secured by NBCC, showcasing its diverse construction expertise across India. The largest project is a 17.4-acre development named "Coine Bliss City" in Kochi for Rs 700 crore, highlighting its urban development capabilities.

Furthermore, NBCC will build a new Boys' College building for Hindu College (Rs 69.71 crore) and an office-cum-training institute for the Institute of Company Secretaries of India (ICSI) (Rs 8.62 crore), demonstrating its experience in educational and institutional infrastructure. Further solidifying its well-rounded portfolio, NBCC will construct a centralized core repository with advanced laboratory facilities for Oil India Limited in Guwahati (Rs 99.84 crore), showcasing its ability to handle projects for various government and public sector entities. These wins follow several other significant project acquisitions totalling Rs 491.45 crore, signifying strong demand for NBCC's services and solidifying its position as a leading Indian construction company.

Today, shares of NBCC (India) Ltd gained 1 per cent to an intraday high of Rs 159.70 per share while an intraday low was Rs 155.65 from its previous closing of Rs 158.15. The company has a market cap of over Rs 28,000 crore and has been maintaining a healthy dividend payout of 35 per cent.

Also Read: After Rs 7,000 crore orders from Adani Group, this heavy electrical equipment company likely to bags another huge order worth Rs 13,300 crore from Damodar Valley Corporation

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 March 2024, Life Insurance Corporation of India (LIC) owns a 6.55 per cent stake in the company. The stock gave multibagger returns of over 300 per cent in just 1 year whereas BSE Sensex is up by 25 per cent. Investors should keep an eye on this stock.

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