This small cap company with a pan India presence and the second largest listed construction company by revenue, jumped up to 5 percent in the day’s trade upon receiving new work order worth Rs. 501 cr for Bengaluru Suburban Rails Stations .
Price Action
With a market capitalization of Rs. 16,311 cr, the shares of NCC Ltd were up by 5.3 percent creating a day’s high of Rs. 274.95 per share. The stock has managed to sustain itself at the same price level from the day’s high and is currently trading at Rs. 274.25. NCC Ltd. has delivered a significant return of 57 percent over the past year.
What Happened
NCC Ltd. has received the Letter of Acceptance from Rail Infrastructure Development Company (Karnataka) Limited for the construction of Eight Stations for Bengaluru Suburban Rail Project. The entire order is worth Rs. 501 crore which is to be executed within 24 months from the date of signing the contract agreement.
About the Company
Incorporated in 1990, NCC Limited (formerly known as Nagarjuna Construction Company Limited) is a large Construction and Infrastructure Development Company.They have been participating in various tenders floated on a regular basis and bagging contracts with major clients including Adani, IOC, MMRC, RVNL and NHAI.
Presently, the Company is engaged in the infrastructure sector, primarily into construction of industrial and commercial buildings, housing projects, roads, bridges, flyovers and many more.
Its construction endeavors span across the Nation and encompass Buildings, Transportation, Water and Environment, Electrical Transmission and Distribution, Irrigation, Mining, and Railways projects.
NCC is the only construction company from India hailed as ‘Best Under a Billion‘ in Asia Pacific. The company went from being a mere contractor to a full-fledged infrastructure solutions provider.
Financials
Its revenue from operations grew by 10 percent from Rs. 4764 cr to Rs. 5224 cr during Q2FY24-25, along with an increase in profits of Rs. 77cr to Rs. 162 cr.
In terms of financial performance, the revenue growth has been consistent, driven by long-term contracts from the company’s loyal customer base. NCC Ltd has ensured a healthy balance sheet by maintaining a debt-to-equity ratio of 0.25.
Orderbook
The company has a diversified order book that is worth Rs. 52,370 cr with majority of its contracts in the transportation sector. As of Q2FY25, the company has received an order inflow for a value of Rs. 4,760 cr.
In November 2024, NCC Ltd. received the Letter of Acceptance from Ken-Betwa Link Project Authority for being selected as the successful bidder for the EPC execution of Daudhan Dam. The contract was scheduled for a time period of 72 months and the total price was Rs. 3389.49 cr.
Written by Shwetha Sairam
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