Navratna PSU, one of India’s largest realty CPSEs with operations in project management consultancy and development jumped up to 5 percent in the day’s trade upon signing an MoU with HUDCO to develop a project at ~Rs. 600 Crores
Price Action
With a market capitalization of Rs. 26,725 Crores, the shares of NBCC (India) Limited were trading at Rs. 98.98 per equity share, up 3.5 percent from its previous day’s close price of Rs. 95.70.
What Happened
NBCC (India) Limited has signed an MoU with Housing & Urban Development Corporation Limited to act as Project Management Consultant for the development of 10-acre institutional plot at Noida sector-62, at a tentative cost of Rs. 600 Crores.
About the Company
NBCC (India) Limited is a Navratna central public sector enterprise, it is one of the largest realty CPSEs in India with operations in project management consultancy and realty development businesses in the domestic as well as foreign markets. As of Q2FY25, it has a consolidated order book of ~Rs. 84,400 Crores
Coming to the segmental revenue break, as of Q2FY25 NBCC Limited generated 92 percent of its revenue from Project Management Consultancy, EPC 6 percent, and Real Estate 2 percent.
NBCC (India) Limited has a strong business clientele base, consisting of its well-known clients like SJVN, BHEL, NTPC the Republic of Mauritius, the Republic of Maldives, IIT, IIM, and many others.
Some of the prestigious projects completed or in progress by the company are the World Trade Center, Bharat Mandapam in which the G20 summit was hosted, Garvi Gujarat Sadan, AIIMS Bilaspur, and many more.
Financials & Ratios
Its revenue from operations grew by 19.44 percent from Rs. 2,059 Crores in Q2FY24 to Rs. 2,459 Crores in Q1FY25, 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 24.8 percent and a return on capital employed (ROCE) of 32 percent. In terms of liquidity, it has reported a debt-to-equity ratio of 0.
Written by: Bharath K.S
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