NBCC (India) Ltd stock below Rs 100 secures two major orders

During Monday’s trading session, the shares of NBCC Limited zoomed by 1.07%. The company’s current market capitalisation is Rs 14,922crore.

Recent developments 

The company has secured an order from SAIL DSP, Durgapur worth Rs 150 crore for various construction and renovation works, with a designated execution period of three years.

Simultaneously, Pt. Deendayal Upadhyaya National Institute for Persons with Physical Disabilities (Divyangjan), PDUNIPPD(D), has initiated a contract with NBCC approximately valued at Rs 29.70 crore, for the construction of a permanent building for the Composite Regional Centre (CRC) at Samba, Jammu, UT of J&K. This project, undertaken as Project Management Consultancy on a Deposit Work Basis, is currently awaiting a finalized execution timeframe.

Both contracts reflect the ongoing developments in the construction and project management sectors within the domestic landscape.

Company profile

NBCC (India) Limited, recognised as a Government of India Navratna Enterprise under the Ministry of Housing and Urban Affairs, functions across three primary segments: Project Management Consultancy, Engineering Procurement & Construction, and Real Estate. The company plays a vital role in providing comprehensive solutions and services within these domains, contributing to urban and housing sector projects’ development and management.

The product-wise revenue distribution for the company is as follows: 

– Project Management Consultancy (PMC) constitutes the majority, contributing approximately 92.02% to the overall revenue.

– Engineering Procurement & Construction (EPC) accounts for around 6.11% of the total revenue.

– Real Estate activities contribute a smaller yet significant portion, representing approximately 1.87% of the overall revenue.

This breakdown highlights the diversified portfolio of the company, with a significant focus on Project Management Consultancy, followed by contributions from the Engineering Procurement & Construction and Real Estate segments.

Shareholding pattern 

Furthermore, the President of India holds a substantial ownership stake in this company, amounting to 61.75%. In the September 2023 quarter, FII increased their holdings in the company from 3.84% to 4.14%. This shift in ownership dynamics underscores the significant presence of government ownership alongside a moderate increase in foreign institutional interest during the specified quarter. Additionally, the stock has witnessed significant buying activity as it has given returns of more than 101% in just 6 months.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.