Synopsis:
NBCC India Limited has entered into a Memorandum of Understanding with Housing and Urban Development Corporation Limited for a total consideration of Rs.117 crore.
The shares of the construction company jumped 5 percent after signing an MOU with the Housing and Urban Development Corporation for the development of a commercial plot.
With a market capitalization of Rs.31,117.50 crore, the shares of NBCC India Limited are trading at Rs.115.25, up by 4 percent from the previous day’s closing price of Rs.110.83.
About the MOU
NBCC (India) Limited has received a total of four domestic work orders from the Housing and Urban Development Corporation Limited. The total value of these orders is approximately Rs. 117 crore.
These include developing a commercial plot in Kaushambi, Uttar Pradesh, for around Rs. 23.08 crore, developing a HUDCO plot in Panchkula, Haryana, for about Rs. 26.92 crore, building additional blocks at HUDCO’s Regional Office in Ahmedabad, Gujarat, for Rs.63.36 crore, and rebuilding flats at the Asian Games Village Complex in New Delhi for approximately Rs.3.65 crore.
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About The Company
NBCC India Limited, earlier known as National Buildings Construction Corporation Limited, is a prominent Government of India Navratna enterprise under the Ministry of Housing and Urban Affairs. The company operates mainly in three areas: Project Management Consultancy, Real Estate Development, and EPC Contracting.
Its core strength lies in PMC, which accounts for about 90 percent of its revenue, and includes projects like the redevelopment of government properties, roads, hospitals, medical colleges, offices, airports, bridges, and industrial or environmental structures. NBCC also works in the EPC segment, handling infrastructure projects such as chimneys, cooling towers, and various power plant works.
The company, which is a Navratna CPSE under MoHUA, is one of India’s largest construction companies, with over 64 years of experience and a global presence. The current NBCC’s stand-alone order book of Rs.1,05,000 crore reflects the total value of its current and upcoming projects handled by the company alone. The consolidated order book of Rs.1,20,000 crore includes projects from NBCC as well as its subsidiaries and joint ventures.
In Q1FY26, the company’s operating revenue increased to Rs.2,391 crore from Rs.2,143 crore in Q1FY25. Its net profit rose to Rs.135 crore, up from Rs.107 crore a year ago. The return on equity stands at 25.5 percent, and the return on capital employed is 33.2 percent. The stock is currently trading at a price-to-earnings ratio of 48.83, compared to the industry average of 20.34.
Written By Jhanavi Sivakumar
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