NBCC Secures New Order from REC

Indian benchmark indices opened Monday’s session on a fragile note, influenced by weak cues from Asian peers. However, both the NSE Nifty50 index and BSE Sensex have shown resilience, recovering from early losses and currently trading in green.

Market Performance

The NSE Nifty50 index is trading higher by 0.04%, surpassing the 23,500 mark, while the BSE Sensex is up by 0.10%, hovering around the 77,300 mark. In contrast, the Bank Nifty was seen trading lower by 0.19%. The broader markets have also bounced back from lower levels and are now trading in green.

Stock Spotlight: NBCC (India) Limited

Amid this recovery, NBCC (India) Limited has emerged as a standout performer. This Government of India Navratna Enterprise, under the Ministry of Housing and Urban Affairs, operates in three major segments: Project Management Consultancy, Engineering Procurement & Construction, and Real Estate.

On Monday, the stock opened at Rs 165, dipped to an intraday low of Rs 161.25 per share on NSE, but managed to recover, trading above its opening level.

Catalyst for Recovery

The recovery in NBCC’s stock can be attributed to the company’s announcement of a new work order worth approximately Rs 100 crore. The project involves serving as the project management consultant (PMC) for the new construction and renovation of the existing RECIPMT Building in Hyderabad for REC Limited.

On June 11, 2024, the company was awarded work orders amounting to approx. Rs 878.17 crore. It included Development of 17.4 Acres (5 Contiguous land parcels) located in 

Kakkanad Ernakulam District Kochi & Coine “Bliss City”  worth Rs 700 crore. Apart from this, on June 18, 2024, the company was awarded Planning, designing and execution of 

interior works including furniture’s, fitout works, cabling and other infrastructure 

work at “Grand Rue”- Ayur Vigyan Nagar, August Kranti Marg, New Delhi for establishment of GRID-INDIA worth Rs 70 crore. 

In June 2024 alone, NBCC’s stock has rallied nearly 16%, and over the year, it has delivered multibagger returns, with the stock price surging over 100%.

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.