Overview of NBCC (India) Limited
NBCC (India) Limited, a leading public sector construction company, has recently made headlines with significant developments that could impact its market performance. On September 25, the company announced it has secured a new work order valued at ₹75 crore. Despite this positive news, NBCC’s shares experienced a decline of 1.91% on September 26, closing at ₹169.05 on the Bombay Stock Exchange (BSE). The market capitalization of NBCC now stands at approximately ₹30,429 crore.
Recent Developments
Project Management Consultant Role at IIIT Nagpur
In a notable achievement, NBCC has been appointed as the Project Management Consultant (PMC) for various infrastructure developments at the Indian Institute of Information Technology (IIIT) Nagpur. This project will be executed in Engineering, Procurement, and Construction (EPC) mode, highlighting NBCC’s expertise in managing large-scale construction projects.
Major Order from Ministry of Health and Family Welfare
This week, NBCC’s wholly-owned subsidiary, HSCC (India) Ltd, announced it won a substantial order worth ₹1,260 crore from the Ministry of Health and Family Welfare, Government of India. This project involves setting up an All India Institute of Medical Sciences (AIIMS) in Darbhanga, Bihar, further solidifying NBCC’s role in enhancing India’s healthcare infrastructure.
Financial Performance
Q1 FY25 Results
NBCC showed impressive financial growth, reporting a consolidated net profit of ₹107.19 crore for the quarter ending June 2024 (Q1FY25). This represents a notable 38% increase from ₹77.41 crore in the corresponding quarter last year. Furthermore, the company’s total income climbed to ₹2,197.83 crore, up from ₹1,974.03 crore, indicating robust revenue growth.
Share Performance Analysis
Recent Share Trends
While NBCC shares have shown commendable performance over the long term, they have faced recent challenges. Over the past month, the stock has declined by approximately 4%. However, over the last six months, it has delivered an impressive return of 47%, and a remarkable 195% increase over the past year. Despite this year-to-date decline of 107%, it is essential to recognize the substantial 591% surge over the last four years, making NBCC an attractive option for long-term investors.
Conclusion
NBCC (India) Limited continues to play a crucial role in the construction and infrastructure sector in India, backed by significant government projects and strong financial results. As the company navigates market fluctuations, its long-term performance metrics suggest a resilient foundation. Investors should remain informed and consider the potential risks associated with stock investments while recognizing the growth that NBCC has exhibited over the years.
Disclaimer: The information provided in this article is for informational purposes only. Investing in the stock market carries risks, and it is advisable to consult a financial expert before making investment decisions. Moneycontrol does not provide investment advice.
