During Tuesday’s trading session, the shares of Navratna PSU which is one of the largest realty CPSEs in India with operations in project management consultancy and development are in focus on receiving new work orders worth around Rs. 500 crores.
With a market cap of Rs. 25,941.6 crores, at 12:12 p.m., the shares of NBCC (India) Limited were trading in the red at Rs. 96.08, down by nearly 1.6 percent, compared to its previous closing price of Rs. 97.68.
What’s the news:
According to the latest regulatory filings with the stock exchanges, NBCC (India) Limited secured an order valued at around Rs. 500 crores from the Bureau of Indian Standards (BIS).
The contract involves the construction of various buildings, including the BIS Headquarters in New Delhi, the Central Laboratory in Sahibabad, the National Institute of Training for Standardization in Noida, the Northern Regional Laboratory in Mohali, and the Bangalore Branch Laboratory in Bengaluru.
Previous Orders:
On October 28, NBCC was awarded a redevelopment project (Phase-I) in Goa by the Government of Goa, with a project value of about Rs. 1,726 crores.
This order covered the redevelopment of several key structures, including the Junta House, Circuit House, Government Garage and Quarters, and the Mini Convention Centre in Tiswadi. Additionally, the project involved the construction of an Administrative Building in Porvorim, Goa.
On 1st November, the company was awarded work orders totalling nearly Rs. 235.45 crores, including the construction of a Multipurpose Examination Hall and Innovation Centre at Mahatma Gandhi Kashi Vidyapith University in Varanasi, as well as the repair and renovation of the Panani Bhawan academic block at Sampurnanand Sanskrit University.
The orders also involved renovating the Corporate Office Building of Power Grid Corporation of India Ltd. in Gurugram, Haryana.
On 4th November, Hindustan Steelworks Construction Limited (HSCL), a subsidiary of NBCC, secured an order worth Rs. 65 crores for development work at the Bank’s Commercial Plot at Financial City, Bengaluru, and at the Hardware Park in Bengaluru, on a deposit work basis.
Financials:
The company reported a marginal growth in revenue from operations, experiencing a year-on-year increase of nearly 11.8 percent, rising from Rs. 1,918 crores in Q1 FY24 to Rs. 2,144 crores in Q1 FY25.
Likewise, during the same period, the company’s net profit increased from Rs. 77 crores to Rs. 107 crores, representing a significant growth of around 39 percent YoY.
Order Book:
The current standalone order book of NBCC is around Rs. 70,000 crores, while the consolidated order book stands at Rs. 81,000 crores.
The management expects the order book to grow to Rs. 1 lakh crores by the end of the year, fueled by ongoing projects and new orders.
Management Guidance:
EBITDA margins are projected to range from 5.5 percent to 6 percent, with net profit margins expected to fall between 4.5 percent and 5 percent.
The management expects continued revenue growth, with a target of achieving Rs. 10,000 crore turnover at the standalone level and Rs. 13,000 crores at the consolidated level for FY25 (targeting a 25 percent growth rate).
The management is optimistic about maintaining strong revenue growth, which is expected to be driven by a robust order book and ongoing project execution. The company also plans to diversify and acquire underperforming public sector units that possess significant land assets.
Further, the revenue growth is anticipated from new real estate projects and government contracts.
Stock Performance:
The stock has delivered multibagger returns of nearly 114 percent in one year, and around 8 percent of positive returns in the last six months. So far in 2024, the shares of NBCC have given positive returns of about 76.3 percent.
About the company:
NBCC (India) Limited, one of the largest realty CPSEs in India, is a Navratna Enterprise under the Ministry of Housing and Urban Affairs, operating in three major segments: Project Management Consultancy, Real Estate and Engineering Procurement & Construction (EPC).
Written by Shivani Singh
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.
