This Navartana PSU stock which deals in operates in segments like Project Management Consultancy, Engineering Procurement & Construction, and Real Estate was in focus after the company to work as a consultant for a project worth Rs. 3,500 crores.
Price Action
With a market capitalization of Rs. 21,721.50 Crores, the shares of NBCC (India) Limited were down by 5.2 percent in the day’s trade touching a day’s low of Rs. 80.21 per share. The stock reiterated from the day’s high and was trading at Rs. 80.30 per share which is down 4.91 percent higher from the previous closing price of Rs. 84.45 apiece. The stock has delivered a 30 percent return and has outperformed the Nifty Index in the past year.
What Happened
The stock of NBCC (India) was in focus after the company entered into a Memorandum of Understanding (MoU) with Sarkari Awas Nirman Avam Vitt Nigam as the party has agreed to award the works related to execution of mixed land use development of Poorvi Vihar in Lucknow with an approximate 588 Acres to NBCC as Project management Consultant and NBCC needs to agree to undertake the work accordingly as per MoU.
After signing the MoU, NBCC has been tasked with the work of undertaking a 50-acre phase 1 Project with an approximate value of Rs. 3,500 crores. The company will execute the project on a deposit-on-work basis with the agency charging 10 percent of the project’s actual cost.
About the Company
NBCC (India) Limited was established in 1960. It is a Navratna public sector enterprise under the Ministry of Housing and Urban Affairs, India. They operate in three segments namely Project Management Consultancy, Engineering Procurement and Construction, and Real Estate Development.
Their business model focuses on managing government projects from inception to completion and focuses on sustainable redevelopment and monetization of land. NBCC generates revenue mainly through consultancy fees and project management services, contributing significantly to infrastructure development across India and internationally, including projects in countries like Iraq and Nepal. The order book of the company stood at around Rs. 84,400 crore.
Products and Services
NBCC (India) Limited provides a range of services, including Project Management Consultancy for government projects, Engineering Procurement and Construction for infrastructure development, and Real Estate Development for residential and commercial properties.
Financials & Ratios
Its Revenue from operations grew by 19.42 percent year on year from Rs. 2,059 Crores in Q2FY24 to Rs. 2,459 Crores in Q2FY25, accompanied by profits of Rs. 82 Crores to Rs. 125 Crores.
In terms of Return ratios, it has reported a return on equity (ROE) of 25.64 percent and a return on capital employed (ROCE) of 30.87 percent. It has reported a debt-to-equity ratio of 0.
Shareholding Pattern
As of October 2024, the shareholding pattern with promoters stake holding a share of 61.75 percent in NBCC (India), Foreign Institutional Investors (FII) holdings stood at 4.05 percent, Domestic Institutional investors (DII) standing at 9.13 percent, and public holdings standing at 25.05 percent.
Written by Santhosh S
