Mid-cap Navarathna stock rose 1.5% after receiving a work order from National Highways Authority of India for construction work for a value Rs. 101.00 Crores.
Share price variations:
With a market capitalization of Rs. 32,193 crores, NBCC (India) Ltd opened the trading session at Rs. 178.60, nearly matching Friday’s close of Rs. 177.40. The stock reached an intraday high of Rs. 180.10, reflecting a 1.52% increase from Friday’s close. As of 12:45 PM, the stock was trading at Rs. 178.60 per share.
Reason for Rise:
According to exchange filings, NBCC (India) Ltd has received an order from the National Highway Authority of India (NHAI) to serve as the Project Management Consultant for the construction of permanent office buildings for regional offices cum project implementation units. The project is valued at approximately ₹101.00 crores.
Recent Major Projects:
In September, the company was awarded a project valued at ₹75 crores from the Indian Institute of Information Technology, Nagpur, to act as the Project Management Consultant. Additionally, HSCC (India) Limited, a wholly-owned subsidiary of NBCC (India) Limited, secured a project worth ₹1,261.00 crores for the establishment of AIIMS in Darbhanga, Bihar, from the Ministry of Health and Family Welfare.
The company also entered into an MoU with MTNL to collaborate on developing an MTNL land parcel for a project valued at ₹1,600.00 crores. In August, the company received a work order worth ₹710 crores from the Jhansi Development Authority for the development of two land parcels in Jhansi on a self-sustainable model, and a ₹15,000 crore order from the Srinagar Development Authority for the development of a satellite township spread over 406 acres at Rakh-e-Gund Akshah, Bemina, Srinagar.
Financial Performance:
For Q1FY25 the company reported a net profit increase of 38.47% to Rs. 107.19 crores compared to net profit of Rs. 77.14 crores in Q1FY24, while revenue from operations increased by 10% to Rs. 2,118.68 crores from Rs. 1,913.79 crores in comparison to the same period.
The stock has delivered a 42.74% return over the past six months and a multibagger return of 205% over the last year. It has a Return on Equity (ROE) of 25.64% and a Return on Capital Employed (ROCE) of 30.87% for FY24.
About the company:
Founded in 1960 as a government-owned civil engineering enterprise, NBCC (India) Ltd operates across three key segments: Project Management Consultancy (PMC), Engineering Procurement & Construction (EPC), and Real Estate Development. Recently, NBCC has expanded its offerings to include a new business vertical focused on the redevelopment of government properties within its PMC segment.
The company generates 93% of its revenue from Project Management Consultancy, 5% from EPC contracting, and 2% from real estate development. Currently, NBCC has a presence outside of India in Mauritius, the Maldives, Seychelles, and Dubai.
Written By: Joseph Pv
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