PSU real estate small-cap stock rose 0.5 percent to its intraday high of Rs 83.3 per share from its previous close of Rs 82.85 per share after the company received an order from Delhi Metro Rail Corporation Ltd.
According to NBCC India’s filing, the company has received a work order worth Rs 88.9 crores from Delhi Metro Rail Corporation Ltd, for the execution of the staff quarter residential Building for the Bhubaneswar Metro Rail Project.
Looking at the financials of NBCC India Limited, net revenue increased by 4.2 percent year on year, from Rs 1,556 crore in Q2FY23 to Rs 1,622 crore in Q2FY24. Their revenue rose by 9.7 percent sequentially from Rs 1,478 crore in Q1FY24 to the current levels.
Furthermore, the company’s net profit decreased by 14 percent year on year, from Rs 99 crores in Q2FY23 to Rs 85 crores in Q2FY24. Their profit increased by 34 percent on a quarterly basis from Rs 63 crore in Q1FY24 to current levels.
NBCC India has a low price-to-earnings ratio of 44 compared to its peers, also it maintains its debt as zero from the last five years, with a return on equity ratio of 15 percent, and a return on capital employed of 30 percent.
The small-cap company has a market capitalization of Rs 14,738 crores. In the past six months, the share price of NBCC India has increased by 106 percent, and so far this year, it has increased by 101 percent. For instance, if an investor invested Rs 1 lakh a year ago the current value would be Rs 2.06 Lakh.
The company’s Promoters own 61.75 percent of the company; the General Public owns 23.90 percent, Foreign Institutional Investors own 4.14 percent, and Domestic Institutional Investors own 10.21 percent.
National Buildings Construction Corporation India (NBCC) Ltd. is a Navratna enterprise under the Ministry of Housing and Urban Affairs. It operates in Project Management Consultancy, Engineering Procurement and construction, and Real Estate.
Written by Sriram KV
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