Rs 55,300 crore orderbook: This Multibagger Construction Company made Rs 10,000 crore business in the last nine months—Conference Call Highlights
This stock has given multibagger returns of 331 per cent in last one year.
NBCC Limited, a prominent player in the construction and real estate sector, recently held its 3Q FY '24 Results Conference Call, where the management highlighted significant achievements and outlined future prospects. Led by Shri K. P. Mahadevaswamy, the Chairman cum Managing Director, the conference provided valuable insights into the company's performance and its strategic direction.
Financial Performance:
The company reported impressive financial results for the third quarter ended December 31, 2023. With a total income of 6,566 crores and a profit before tax (PBT) of 361 crores, NBCC demonstrated robust growth, marked by a 63 per cent increase in year-on-year total income and a substantial 66 per cent rise in PAT for the nine months period.
Key Achievements:
One of the standout achievements highlighted during the conference was NBCC's success in securing business worth Rs. 10,000 crores over the last nine months, reflecting a significant increase from the previous year's figures. The completion and ongoing progress of flagship projects such as the Amrapali project, Nauroji Nagar World Trade Center, and Sarojini Nagar redevelopment project were also discussed.
Amrapali Project:
The Amrapali project emerged as a major contributor to NBCC's revenue, with a turnover of 1,170 crores. Notably, NBCC has made significant strides in completing and handing over 16,000 housing units out of a total of 38,000 units, with an additional 14,000 units expected to be ready by December 2024. The collaboration with the Aspire team resulted in the sale of 6,000 units, amounting to 3,500 crores.
Redevelopment Projects:
The progress of redevelopment projects such as Nauroji Nagar and Sarojini Nagar showcased NBCC's commitment to infrastructure development. With Nauroji Nagar World Trade Center nearing completion and Sarojini Nagar undergoing phased development, NBCC continues to contribute to urban rejuvenation on a significant scale.
Real Estate Ventures:
NBCC's foray into real estate sales witnessed notable success, with a significant increase in sales volume and profitability. The company's proactive approach in reaching potential buyers and leveraging its expertise in redevelopment projects bodes well for future growth.
Future Outlook:
Looking ahead, NBCC outlined several key focus areas and opportunities for expansion. These include exploring opportunities in affordable housing, land monetization, overseas projects in African countries and the Maldives, and diversification into sectors such as Metro Railways.
On Friday, shares of NBCC (India) Ltd plunged 1.78 per cent to Rs 143.35 per share with an intraday high of Rs 147.80 and an intraday low of Rs 142.20. The company has been maintaining a healthy dividend payout of 44.4 per cent. In December 2023, FIIs increased their stake to 4.46 per cent compared to 4.14 per cent in September 2023 while DIIs increased their stake to 10.41 per cent compared to 10.21 per cent in September 2023
The stock gave multibagger returns of 331 per cent in just 1 year. Investors should keep an eye on this stock.
Disclaimer: The article is for informational purposes only and not investment advice.