1:2 bonus share & Rs 81,000 crore order book: PSU civil construction company signs MoU worth Rs 1,600 crore with Mahanagar Telephone Nigam Limited (MTNL)

The stock gave multibagger returns of 230 per cent in just 1 year whereas BSE Sensex is up by 23.5 per cent.

On Thursday, shares of NBCC (India) Ltd-backed by the President of India & LIC; gained 2.59 per cent to Rs 180.30 per share from its previous closing of Rs 175.75 with an intraday high of Rs 183.70 and an intraday low of Rs 177. The company has a market cap of Rs 32,454 crore and has been maintaining a healthy dividend payout of 35 per cent.

The company informed that a Memorandum of Understanding (MoU) has been signed between NBCC (India) Limited and Mahanagar Telephone Nigam Limited (MTNL), to collaborate to develop a prominent land parcel of MTNL measuring approximately 13.88 acres located on Pankha Road, New Delhi. This project aims to transform the land into a state-of-the-art residential/commercial space, leveraging the expertise and resources of both organizations. The project is valued at Rs 1,600.00 crore approximately.

Earlier, the company secured a work order worth Rs 182.50 crore. This order includes two projects: 1. Construction of new facilities for Oil India Limited's Oil Pipeline Headquarters in Guwahati, Assam, which includes two residential buildings, an office building, and a recreation center. 2. Rehabilitation of the Indian Statistical Institute Delhi Centre's Platinum Jubilee Hostel.

Furthermore, the Board of Directors of the company approved bonus shares in the ratio 1:2 i.e., 1 new fully paid-up equity share of Re 1 each for every 2 existing fully paid-up equity shares of Re 1 each to the eligible members of the company as on record date. The Board has fixed Monday, October 07, 2024, as the Record date to determine the eligibility of members to receive bonus shares.

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 230 per cent in just 1 year whereas BSE Sensex is up by 23.5 per cent.

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

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