This small-cap stock engaged in shaping India’s infrastructure landscape, driving innovation and excellence across sectors like buildings, transportation, electrical, and water, jumped 7 percent after securing orders worth Rs. 10,804 crore from Bharat Sanchar Nigam Limited (BSNL) for the BharatNet project.
Stock Price Movement:
With a market capitalization of Rs. 13,376.27 crores, the share of NCC Limited has reached an intraday high of Rs. 218.30 per equity share, rising nearly 6.77 percent from its previous day’s close price of Rs. 204.45. Since then, the stock has retreated and is currently trading at Rs. 213.05 per equity share.
What Happened:
NCC Limited has received two major advance work orders from Bharat Sanchar Nigam Limited (BSNL) on March 25, 2025, for the BharatNet project. These orders are valued at Rs. 10,804.56 crore and involve the design, construction, installation, and maintenance of middle-mile network infrastructure across different telecom circles in India.
The first order is for Uttarakhand Telecom Circle, valued at Rs. 2,647.12 crore (including both capital and operational expenses). The second order is for Madhya Pradesh, DNH, and DD Telecom Circles, with a total value of Rs. 8,157.44 crore. Both orders have a construction period of three years and a maintenance period of ten years. These are significant contracts for NCC Limited, contributing to the company’s growth in the telecom sector.
Order Book:
NCC Limited’s order book for Q3FY25 is Rs. 55,548 crore, with the largest share coming from the Buildings sector (38 percent). Electrical (T&D) and Transportation sectors each account for 19 percent, while Water & Railways contribute 10 percent. Irrigation makes up 9 percent, and Mining is at 5 percent. The company also saw an order inflow of Rs. 8,440 crore in Q3FY25.
Management Guidance:
NCC Limited has set its FY25 guidance targets, aiming for Rs. 20,000-22,000 crore in new orders, a 5 percent revenue growth, and an EBITDA margin of 9.25 percent. These targets reflect the company’s strategic focus on growth and profitability.
Clientele:
The company has maintained a strong client base, which includes a mix of government organizations, public sector companies, and private enterprises from various sectors such as infrastructure, water supply, metro projects, energy, and more. Some notable clients are Adani, IndianOil, Rail Vikas Nigam Limited, and Airports Authority of India.
Recent quarter results:
NCC Limited’s revenue has increased from Rs. 5,260 crore in Q3 FY24 to Rs. 5,345 crore in Q3 FY25, which has grown by 1.62 percent. The net profit has decreased by 10.82 percent from Rs. 231 crore in Q3 FY24 to Rs. 206 crore in Q3 FY25.
Written By – Nikhil Naik
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