Shares of this Navratna Defence company, active in Project Management Consultancy, Engineering Procurement & Construction, and Real Estate, are currently trading at a 34 percent discount with an order book of Rs.84,400 crore.
Recently, the company secured Rs.368 crore in orders from the Power Grid Corporation (PGC), Varanasi Development Authority, and IIT Roorkee, which contributed to a 2 percent increase in its share price.
Share price movement
During Friday’s trading session, NBCC Limited’s shares reached an intraday high of Rs.93.91 per share, marking a 3.4 percent increase from the opening price of Rs.92.07. However, the shares later retreated and closed at Rs.117.60. The stock has declined by nearly 34 percent from its all-time high of Rs.139.83 per share.
What happened
NBCC’s consolidated order book totals Rs.84,400 crore, with the company holding approximately Rs.70,403 crore. HSCL contributes Rs.8,093 crore, another HSCL unit adds Rs.5,915 crore, and NSL accounts for Rs.200 crore.
The order book is divided into around 55 percent from Project Management Consultancy (PMC) and Engineering Procurement & Construction (EPC), while the remaining 45 percent is from redevelopment projects.
Recent Orders
Recently NBCC received three work orders on Friday, 27th December, 2024, with a total value of Rs.368.75 crore. The first order involves the construction of the Mehta Family School of Data Science and Artificial Intelligence, including various installations, at IIT Roorkee, Uttarakhand, valued at Rs.24.38 crore.
The second order is for the development of the Jawaharlal Nehru Commercial Complex (JLNCC) in Varanasi, U.P., under a self-sustainable model, awarded by the Varanasi Development Authority, valued at Rs.300 crore.
The third order is for the construction and furnishing of a 500-bed multi-storey “Vishram Sadan” at AIIMS Gorakhpur, U.P., with a value of Rs.44.37 crore from Power Grid Corporation of India Ltd.
Management Guidance
The company projects EBITDA margins of 5.5 to 6 percent and PAT margins of 4.5 to 5 percent. Management expects revenue growth to continue, targeting a 25 percent increase for the current year.
Financial Performance
In its latest financial update, NBCC reported revenue of Rs.2,459 crore in Q1FY25, reflecting a 20 percent increase from Rs.2,059 crore in the same quarter of the previous year. Net Profit for the period increased 52 percent to Rs.125 crore, compared to Rs.82 crore in the same period.
Company Profile
NBCC (India) Limited is a Navratna public sector enterprise under the Ministry of Housing and Urban Affairs, Government of India. The company specializes in project management consultancy, engineering procurement and construction, and real estate development, with a notable focus on redeveloping government properties.
Written by – Siddesh S Raskar
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