1:2 Bonus Share; Rs 81,000 Crore Order Book & Rs 14,800 Crore Worth Commercial Space Sold: President of India & LIC-backed Multibagger Stock To Keep Under Radar!

The stock gave multibagger returns of 260 per cent in just 1 year whereas BSE Sensex is up by 26.3 per cent.

On Monday, shares of NBCC (India) Ltd-backed by the President of India & LIC; gained 3 per cent to Rs 192 per share from its previous closing of Rs 186.35. The company has a market cap of over Rs 34,000 crore and has been maintaining a healthy dividend payout of 35 per cent.

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.

Additionally, the company announced the remarkable achievement of selling 100 per cent of the office space inventory at World Trade Center (WTC) Nauroji Nagar, New Delhi and 100 per cent of retail and commercial space at Downtown Sarojini Nagar, New Delhi.

In a significant achievement, NBCC has successfully sold commercial space valued at a staggering Rs. 14,800 crore. This impressive figure is a result of the company's two major auction sales. The first auction involved the sale of 100 per cent of the office space at the World Trade Centre, Nauroji Nagar, New Delhi, valued at Rs 13,408.7 crore. The second auction saw the complete sale of retail and commercial space at Downtown, Sarojini Nagar, New Delhi, valued at Rs 1,390.92 crore.

NBCC played a pivotal role in both auctions, acting as the Project Management Consultant and Marketing Consultant on behalf of the Ministry of Housing and Urban Affairs. The company's expertise and strategic approach were instrumental in attracting significant interest from buyers and ensuring the successful completion of the sales. The sold properties are located in self-sustainable projects, indicating their potential for long-term value and profitability.

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 260 per cent in just 1 year whereas BSE Sensex is up by 26.3 per cent.

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

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