Rs 81,000 crore order book: President of India-backed multibagger civil construction stock hit 52-week high as Board likely to announce bonus shares!

As of June 2024, the President of India owns a 61.75 per cent stake and the Life Insurance Corporation of India (LIC) owns a 5.96 per cent stake in the company.

On Wednesday, shares of NBCC (India) Ltd-backed by the President of India; rocketed 18.1 per cent and made a fresh new 52-week high of Rs 209.75 per share from its previous closing of Rs 177.65. The company has a market cap of over Rs 35,000 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 195.90 per share, up 10.27 per cent with a spurt in volume by more than 6 times on BSE.  

The Board of Directors of the company is scheduled to be held on Saturday, August 31, 2024, to inter-alia to consider the proposal for the issue of bonus Shares to the equity shareholders of the company in the ratio, as it may deem fit by way of capitalization of reserves, subject to the Shareholders approval.

HSCC (India) Limited, a subsidiary of the company, has recently secured a contract worth Rs 528.21 crore to supply bio-medical equipment and hospital furniture to Pt. Deen Dayal Upadhayaya University of Health Sciences in Kutail, Karna. This contract aligns with HSCC's typical business operations.

Meanwhile, NBCC (India) Limited has been awarded two significant projects. The first involves developing a satellite township spread over 406 acres in Srinagar, Jammu and Kashmir, for the Srinagar Development Authority, valued at Rs 15,000 crore. The second project entails constructing a new building by demolishing the existing building of the Hyderabad Chapter of the Institute of Company Secretaries of India in Anand Nagar Colony, Khairatabad, Hyderabad, with an estimated value of Rs 9.97 crore. Additionally, NBCC has been tasked with developing two land parcels in Jhansi on a self-sustainable basis for the Jhansi Development Authority, valued at Rs 710 crore. Overall, these projects demonstrate NBCC's growing expertise in diverse construction and development endeavours.

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 11.32 per cent to Rs 2,144.16 crore and the net profit increased by 38.4 per cent to Rs 107.20 crore in Q1FY25 over Q1FY24. 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 June 30, 2024, crosses Rs 81,000 crore. And the current year target is around Rs 10,000 crore turnover at the standalone and Rs 13,000 crore at the consolidated level

As of June 2024, the President of India owns a 61.75 per cent stake and the Life Insurance Corporation of India (LIC) owns a 5.96 per cent stake in the company. The stock gave multibagger returns of 290 per cent in just 1 year whereas BSE Sensex is up by 25.8 per cent.

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

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