Shares of this mid-cap infra stock were in focus on Monday after the company’s subsidiary bagged multiple orders worth Rs 367.92 crores. Year-to-date, the company’s stock has gained nearly 50 percent to its stakeholders.
With a market capitalization of Rs 21,852 crores, the stocks of NBCC India Limited, a Navratna CPSE, started their trading session on Monday at Rs 127.15 and currently trade at Rs 121.60.
In a recent regulatory filing with the Bombay Stock Exchange (BSE), the company intimated about ‘HSCC (India) Limited’, a wholly owned subsidiary company of NBCC India Limited, successfully bagging orders totaling Rs 367.92 crores.
Out of the same, the company received orders summing up to Rs 262.13 crores from “Medical Education & Ayush”, Maharashtra for various construction purposes, i.e., construction of exam halls, lecture halls, student hostels, etc.
The remaining amount of Rs 105.79 crores was received by the company from “Power Grid Corporation of India Limited” for the construction of township works.
In addition, the Navratna company, last week, entered into a couple of Memorandum of Understanding (MoUs) with Bharat Heavy Electrical Limited (BHEL) for the redevelopment of the latter’s properties/facilities, lease of BHEL’s offices, residential units on PAN India Basis.
During the recent financial quarters, the company’s basic business indicators, viz, operating revenues as well as after-tax profits, showed positive movements with the former taking an upward shift from Rs 1,622 crores during Q2FY24 to Rs 1,919 crores during Q3FY24 and the latter, during the same period, rising from Rs 85 crores to Rs 94 crores.
Keeping a purview of the last one year, the company’s stock delivered multibagger returns of approximately 233 percent to its holders, i.e., if someone had invested Rs 1 lakh into the company’s stock a year ago, it would have converted to Rs 3.33 lakhs.
As per the recent presentations, the company expects revenue generation of 1,400 to 1,500 crores from the existing land bank. The company also plans to diversify its business by securing projects in the Metro Railways sector.
The company’s future outlook includes opportunities in the housing sector, land monetization, real estate projects in Tier-2 cities, and overseas focus in African countries.
NBCC India Limited is a Navratna CPSE that is engaged in the urban and regional development sector. The company’s operating segments include ‘Real Estate Development’, ‘Project Management Consultancy’, and ‘Construction’ segment. It conducts business operations in India and derives the majority of its revenue from the ‘Project Management Consultancy’ segment.
Written by Amit Madnani
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