Rs 70,000 crore order book: LIC-backed multibagger civil construction stock surged over 5 per cent; Company received orders worth Rs 905.06 crore from various clients across India
The stock gave multibagger returns of 257 per cent in just 1 year whereas BSE Sensex is up by 20.5 per cent.
On Wednesday, shares of NBCC (India) Ltd gained 5.34 per cent to an intraday high of Rs 172.45 per share from its previous closing of Rs 163.70. The company has a market cap of over Rs 30,000 crore and has been maintaining a healthy dividend payout of 35 per cent. At the closing bell, shares of the company were trading at Rs 171.50 per share, up 4.76 per cent.
NBCC (India) Limited announced the award of a new project valued at approximately Rs 50 crore for the construction of a Regional Passport Office in Srinagar, Jammu & Kashmir from the Ministry of External Affairs. This contract was received through the normal course of business.
Earlier to the above order, the company’s subsidiaries have secured construction orders totalling Rs 855.06 crore from the Maharashtra government. Hindustan Steelworks Construction Limited (HSCL) has been awarded two projects valued at approximately Rs 443.61 crore, encompassing the construction of a 100-student medical college with a 430-bed hospital in Parbhani and a residential hostel for doctors and interns in Solapur. Additionally, HSCC (India) Limited, another NBCC subsidiary, has secured a contract worth around Rs 411.45 crore for building a 100-student medical college and a 430-bed hospital in Buldhana. Both projects are commissioned by the Medical Education & Ayush Department of Maharashtra.
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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 257 per cent in just 1 year whereas BSE Sensex is up by 20.5 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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