During the Tuesday trading session, the shares of one of the infrastructure developers and operators in India almost surges 1.35 percent after receiving work order worth Rs.213 Crores from the Motilal Nehru college from New Delhi.
Price action
With the market capitalization of 26,551Cr on Tuesday, the shares of National Buildings Construction Corporation Ltd jumped up to 1.35 percent making an Intraday high of Rs.100.17 compared to its previous closing price of Rs.98.2.
What happened
National Buildings Construction Corporation Limited (NBCC) has secured a major work order from Motilal Nehru college New Delhi, which involved various construction activities carried out in phases and the project is valued at Rs. 213 Crores.
About the Company
NBCC (India), also known National Buildings Construction Corporation Ltd, is a Government of India Navratna Enterprise under the Ministry of Housing and Urban Affairs. The company’s present areas of operations are categorized into three main segments Project Management Consultancy (PMC), Real Estate Development and EPC Contracting.
NBCC has been executing many Landmark Projects as a PMC which contributes to about 90 percent of its annual revenue. The segment being the company’s core strength, the areas covered under its umbrella include the Re-development of government projects. It has a consolidated order book worth Rs.84,400 Cr.
Recent Projects
The Bharat Mandapam in New Delhi, a key component of the broader Central Vista Redevelopment Project, is set to become India’s premier International Convention Centre. It is Designed to host prestigious diplomatic and government events the estimated cost of the project is Rs. 2,500 crore and it is expected to be completed by 2024.
The most prominent international project, The India Pavilion at the World Expo in Dubai was undertaken by NBCC. Designed to showcase India’s rich culture, innovation, and development, the pavilion played a pivotal role in reinforcing the country’s global stature. It was valued at Rs. 250 crore, the project was completed and unveiled in 2021.
Financials
The company’s revenue rose by 19 percent, from Rs 2,059 crore in Q2FY24 to Rs 2,459 crore in Q2FY25. Meanwhile, Net profit grew from Rs 82 crores to Rs 125 crore during the same period.
Key Financial ratios
National Buildings Construction Corporation Limited has an impressive Return on Equity (RoE) of 23.85 percent and a Return on Capital Employed (RoCE) of 31.72 percent and Furthermore, the company’s debt-to-equity ratio is 0.
Written by Sridhar J
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