Shares of this Navratna CPSE stock under the ‘small-cap’ category jumped up to 7.50 percent on Friday after announcing Q1FY24 results. In the past one month, the company’s stock has gained nearly 20 percent from Rs 41.45 in mid-July to the current price level.
With a market capitalization of Rs 8,800 crores, the stocks of NBCC (India) Limited started their trading session on Friday at Rs 49.40 and currently trade at Rs 49.05. The company’s scrip witnessed an intra-day of Rs 51.20 which is also recorded as the fresh 52-week high mark for the company.
One of the prime causes for the company’s stock price to surge is pertaining to the financial results for the June 2023 quarter. Moreover, the company also declared a Final Dividend of Rs 0.54 per equity share, record date for the same is fixed to be 1st September 2023. As per the current stock prices, the company’s dividend yield stands at 1.10 percent.
On a QoQ basis, the company has reported a dip in basic business indicators such as operating revenues and net profits. The operating revenues went down from Rs 2,790 crores during Q4FY22-23 to Rs 1,918 crores during Q1FY23-24, and, the net profits, during the same time period, reduced from Rs 114 crores to Rs 77 crores.
Comparing Q1FY22-23 and Q1FY23-24, the company, on a contrasting note, reported an increase in the metrics mentioned above with the operating revenues moving up from Rs 1,799 crores to Rs 1,918 crores, and, the net profit figures taking a shift from a loss of Rs 5 crores to a profit of Rs 77 crores.
Another development in the company that took place is with regard to the redevelopment of Sarojini Nagar, New Delhi on an EPC basis worth Rs 955 crores. As per the contract terms decided, the company has been awarded a 2-year period for the construction phase and 5 years for Operation & Maintenance (O&M) of the same.
The latest shareholding pattern data portray the Promoters holding a 61.75 percent stake, and the Foreign Institutional Investors (FIIs) holding a 3.84 percent stake in the company.
NBCC (India) Limited, a Navratna CPSE company, is involved in the “regional & urban development” sector with operating segments comprising Real Estate Development, Project Management Consultancy, Engineering Procurement, and Construction segment.
The company conducts its operations in India and derives a majority of its revenue from the “Project Management Consultancy” segment.
Written by Amit Madnani
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
