NBCC share price hit 52-week high after ₹2cr order win for Kerala housing project

On September 5, 2023, NBCC announced a substantial order worth ₹2,000 crore from the Kerala State Housing Board (KSBH). The project involves the development of 17.9 acres of land parcel at Marine Drive, Kochi, Kerala. While the exact execution timeline is yet to be decided, this partnership signifies a substantial milestone for NBCC.

Contract for Mint, Mumbai Renovation

On September 4, 2023, NBCC secured a contract valued at ₹20 crore from the government of India for the renovation and construction at Mint, Mumbai. This project encompasses planning, designing, and executing structural and non-structural repairs at the Mint, Mumbai factory premises, along with renovation works and the construction of a transit camp at Mint Colony, Parel, Mumbai. The contract falls under regulation 30 of SEBI and is categorized as a Project Management Consultancy (PMC) contract on a deposit work basis.

Stock Performance

Following these developments, NBCC's stock experienced a significant surge. On September 6, 2023, NBCC shares closed at ₹59.10 on the National Stock Exchange, reflecting 5.54% increase. In fact, the shares hit  52-week high of ₹63.65 during the opening trade on the same day. Over the past five trading sessions, the stock has surged over 17%, and in the last six months, it has witnessed a remarkable 70% increase.

Financial Overview

For the fiscal year FY 2022-23, NBCC reported a total operating revenue of ₹8,754.44 crore, highlighting its robust financial performance. As of September 5, 2023, the company boasted a market capitalization of over ₹10,700 crore, reinforcing its position in the market. In the June-ending quarter, the company reported a consolidated net profit of ₹77 crore, a significant improvement from a net loss of ₹5 crore in the corresponding quarter of the previous year. It also posted a net profit of ₹114 crore in the preceding March quarter.

Additional Contracts and Achievements

NBCC has been actively securing contracts and making significant strides in various projects. In August, the company secured a work order worth ₹66.32 crore from the Indian Medical Association for planning, designing, and executing the IMA House at Indraprastha, New Delhi. The completion of this project is anticipated to occur within a timeframe of 30 months.

In addition to the contracts mentioned above, NBCC has been actively involved in significant projects. This includes a project worth ₹749.28 crore from the Ministry of Housing and Urban Affairs for the development of Government of India presses located at various locations.

Moreover, the company signed a Memorandum of Understanding (MoU) with DMRC in August, focusing on collaboration in overseas building and infrastructure development.

Company Overview

Established in 1960 as the construction arm of the Government of India, NBCC executes civil engineering projects for state governments, central government ministries, and both public and private sectors. It achieved the status of a 'Navratna' Company in 2014.

The company operates in three primary segments: Project Management Consultancy (PMC), Real Estate Development (RED), and EPC Contracting. PMC contributes to 93 percent of NBCC's annual revenue, with RED and EPC accounting for 4 percent and 3 percent, respectively.

In another development, NBCC recently announced a dividend distribution of 54% per share to its shareholders for the financial year 2022-23. The record date for the payment of this dividend was set as September 1, 2023.

In conclusion, NBCC's recent contract wins, strong financial performance, and investor-friendly initiatives position it as a key player in the infrastructure and construction sector, offering promising prospects for the future.