From ₹29.85 to ₹63.65: NBCC share price doubles in a year

Shares of NBCC (India), formerly known as National Buildings Construction Corporation, had a stellar run in the last one year, thanks to its strong order book, debt-free position as well as back-to-back subcontracting. NBCC, which is engaged in project management consultancy (PMC) and real estate businesses, has delivered 113% returns to its shareholders in the last one year, while it jumped 73% in six months and 30% in the last one month. In the calendar year 2023, the realty heavyweight has risen over 52%.

On Thursday, NBCC shares opened higher for the second straight session at ₹59.80, up 6.3% against the previous closing price of ₹56.23 on the BSE. In the first hour of trade so far, the stock gained as much as 13% to hit a fresh 52-week high of ₹63.65, while the market capitalisation rose to ₹11,285 crore. The PSU stock has more than doubled against its 52-week low of ₹29.85 touched on September 30, 2022.

NBCC shares got a boost today after the company received an order from Steel Authority of India Limited (SAIL) for upcoming infrastructural-related projects of Bokaro Steel Limited Plant, township, Mines & Collieries. The value of the consultancy and project management services work is ₹180 crore, it said in a BSE filing on Wednesday.

In a separate development, NBCC also signed a quadripartite MoU with Ministry of Steel (MoS) Govt. of India, Rashtriya Ispat Nigam Limited (RINL) and National Land Monetization Corp. Ltd. (NLMC) for monetisation of the non-core assets of RINL at Vishakhapatnam.

“As per MoU, the Navratna would act as technical cum transaction advisor and assist ministry of steel (MoS), RINL and NLMC in monetisation of non-core assets of RINL available at Vishakhapatnam,” it said in an exchange filing yesterday.

Earlier this month, NBCC secured an order worth ₹2,000 crore from Kerala State Housing Board. The company, which under the Indian Ministry of Housing and Urban Affairs, inked a pact with the Kerala State Housing Board for the development of 17.9 acres of land parcel at Kochi's Marine Drive.

Besides, the company won an order worth ₹20 crore from the government for renovation and construction at Mint, Mumbai.

In Q1FY24, NBCC India posted a consolidated net profit of ₹77.41 crore as compared to net loss of ₹4.84 crore in the year-ago period. Total income rose to ₹1,965.80 crore during April-June quarter of FY24, from ₹1,853.24 crore in the same period last year. As per the company, it generated 94.6% of its business revenue from PMC segment and redevelopment works.

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