The shares of this state-run company surged around 15 percent in Wednesday’s trading session following the board’s decision to review a proposal for issuing bonus shares. The shares have delivered a muti-bagger return of 289 percent to its shareholders in one year.
Price Movement:
With a market capitalization of Rs. 35,388 crores, the shares of NBCC (India) Ltd started Wednesday’s trading session on a higher note at Rs. 187.10 compared to its previous close of Rs. 177.64.
During the trading session, the shares hit a high of Rs. 203.85, gaining around 15 percent, also recorded as the company’s fresh 52-week high and are currently trading at Rs. 203.50 apiece.
What Happened:
Such a bullish movement in the share price was observed after the company in an exchange filing announced that the board of directors will meet on August 31 to consider a proposal for bonus shares. This will be the first such proposal that the company will be considering after 2017.
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Financials:
Looking at the company’s financial statements, the revenue decreased by 46 percent from Rs. 3,936.98 crores during the March quarter to Rs. 2,118.68 crores in the June quarter. On the other hand, the net profits declined by 24 percent from Rs. 141.5 crores to Rs. 107.19 crores during the same period.
However, on a YoY basis, the revenue jumped by around 11 percent from Rs. 1,913.79 crores during Q1FY24 to Rs. 2,118.68 crores in Q1FY25. In addition, zoomed by 38 percent from Rs. 77.41 crores to Rs. 107.19 crores during the same timeframe.
Recent Development:
The PSU company received an order worth Rs. 528.21 crore from the Directorate of Medical Education and Research in Haryana.
As per the filing, the company received the order for the procurement of Bio Medical Equipment and Hospital Furniture for Pt. Deen Dayal Upadhayaya University of Health Sciences, Kutail, Karnal.
Earlier, NBCC secured a Rs. 15,000 crore contract from the Srinagar Development Authority to develop a satellite township. The project will cover 406 acres at Rakh-e-Gund Akshah in Bemina, Srinagar.
In FY23-24, the company secured new business orders worth Rs. 23,500 crores and achieved record-breaking sales, particularly in the commercial real estate sector.
Notably, sales at the World Trade Centre in New Delhi soared to approximately Rs. 6,480 crores, marking an impressive increase of over 208 percent compared to the previous fiscal year.
Order Book:
As per the latest data, the company’s current standalone order book is about Rs. 70,000 crores, while the consolidated order book totals Rs. 81,000 crores. The company expects this to grow to Rs. 1,00,000 crores by the end of the year, fueled by ongoing projects and new orders.
Management Guidance:
Looking ahead, the management is aiming for a top-line of Rs. 12,500 crores to Rs. 13,000 crores for the current financial year, with expected EBITDA margins of 5.75 percent to 6 percent and PAT margins of 5.25 percent to 6 percent.
Additionally, the company is planning to expand its presence into international markets such as Fiji, Maribor, the Philippines, Dubai, and Kuwait.
Company Profile:
Headquartered in New Delhi, NBCC is a Government of India Navratna Enterprise under the Ministry of Housing and Urban Affairs. The company operates in three major segments, Project Management Consultancy, Engineering Procurement and Construction, and Real Estate.
Written By Vaibhav Patil
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