1:2 Bonus Issue: PSU Navratna Company Secures Orders Worth Rs 65.15 Crore; FIIs Increase Stake in Q1, Stock Surges Over 450 Per cent in 2 Years!

The company’s shares have delivered an impressive return of over 170 per cent in the past 1 year only.

This Small-Cap Maharatna PSU has recently secured additional work orders for two projects. The company has been awarded the construction of permanent campuses for Jawahar Navodaya Vidyalayas (JNV) in East Delhi and Shahdara, both located in the Union Territory of Delhi. The additional sanctioned value for the East Delhi project is Rs 32.79 crore, while for the Shahdara project, it is Rs. 32.36 crore. These new sanctions come after an earlier work order of Rs 42.20 crore for each project, previously disclosed to the stock exchanges on January 16, 2024, bringing the total additional value to Rs 65.15 crore.

NBCC (India) Ltd 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.

Furthermore, the bonus Issue Committee of the Board of Directors of the Company, in its meeting held today, October 9, 2024, has allotted 90 crore (900,000,000) fully paid-up Bonus Equity Shares with a face value of Rs 1 each. The bonus issue is in the ratio of 1:2, meaning one new fully paid-up bonus equity share of Rs 1 for every two existing fully paid-up equity shares of Rs 1 held by shareholders as of the record date, Monday, October 7, 2024.

The shares of NBCC (India) Ltd are currently trading at around Rs 114.20 per share. The company’s current market capitalization stands at Rs 30,834 crore. The stock has delivered a multibagger return of over 170 per cent in just 1 year.

As per the Quarterly Results, in the first quarter of FY25, NBCC (India) Ltd recorded a revenue of Rs 2144 crore compared to Rs 1918 crore. The operating profit for Q1 FY25 stood at Rs 92 crore. The net profit for Q1 FY25 was Rs 107 crore compared to Rs 77 crore. Looking at the annual performance, the company generated a revenue of Rs 10433 crore in FY24, compared to Rs 8876 crore in FY23. The operating profit for FY24 was Rs 517 crore, with a net profit of Rs 414 crore compared to Rs 278 crore.

Regarding the shareholding pattern, the promoters own 61.75 per cent of the company, while public or retail investors hold 24.35 per cent. Foreign Institutional Investors (FIIs) and Domestic Institutional Investors (DIIs) own 4.43 per cent and 9.47 per cent, respectively. FIIs have increased their stake from 4.33 per cent to 4.43 per cent in the June Quarter of FY25.

Investors must keep this stock on their radar.

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