 "NBCC soars 13%, hits 52-week high on Rs 180-cr order win, MoU with govt")
Shares of state-owned NBCC Ltd vaulted 13 per cent and hit a fresh 52-week high of Rs 63.5 apiece on the BSE in Thursday's intraday trade after the company bagged an order worth Rs 180 crore from SAIL Ltd.
NBCC, the company said, will provide consultancy and project management services for SAIL's upcoming infrastructural related projects of Bokaro Steel Limited Plant, township, Mines & Collieries.
The time period of the project is yet to be decided.
That apart, NBCC (India), on Wednesday, also signed a quadripartite memorandum of understanding (MoU) with Ministry of Steel, Rashtriya Ispat Nigam Limited (RINL), and National Land Monetisation Corp. Ltd. (NLMC) for the monetization of the non-core assets of RINL at Vishakhapatnam.
"As per the MoU, NBCC would act as Technical-cum-Transaction Advisor and assist the Ministry of Steel, RINL, and NLMC in monetisation of non-core assets of RINL available at Vishakhapatnam," it said in an exchange filing.
At 10:15 AM, NBCC was ruling 9.6 per cent higher at Rs 61.65 per share as against 0.15 per cent rise in the benchmark S&P BSE Sensex. A combined around 60.25 million shares have, thus far, changed hands in trades on the NSE and BSE.
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NBCC (India) Limited, formerly known as National Buildings Construction Corporation, is a central public sector enterprise under the Indian Ministry of Housing and Urban Affairs. It is designated as the implementing agency for executing projects under the Atal Mission for Rejuvenation and Urban Transformation (AMRUT), Pradhan Mantri Gram Sadak Yojna (PMGSY), Solid Waste Management (SWM) and developmental work in North Eastern Region.
Over the past one month, the stock price of NBCC has zoomed 18.5 per cent amid a slew of order wins. By comparison, the benchmark Sensex index is up 3.5 per cent during the period.
For instance, the company won order worth RFs 2,000 crore on September 5 for the development of 17.9 acres of land parcel of Kerala State Housing Board at Marine Drive, Kochi, Kerala.
It is a development/redevelopment on self-sustainable basis project management and marketing consultancy order, the period of which is yet to be decided.
It also won an order worth Rs 20 crore from Indian Government Mint, Mumbai, for planning, designing, and execution of structural and non-structural repairs at factory premises along with renovation works, and structural and non-structural repairs of residential quarters at Mint premises.
NBCC will also be responsible for the construction of Transit Camp at Mint Colony, Parel, Mumbai.
Earlier in August, it won order worth Rs 66.32 crore from Indian Medical Association for planning, designing, and execution of IMA House at Indraprastha, IP estate, New Delhi, for a period of 30 months.
It also bagged three other orders worth Rs 98 crore from KASEZ Authority; Rs 50 crore from Currency Note Press, Nasik; Rs 115.4 crore from Paradeep Port Authority; and Rs 15.87 crore from CRSU Jind.
At the end of the April-June quarter, NBCC's consolidated order book stood at Rs 55,000 crore (vs Rs 54,200 crore in Q4-FY23; Rs 60,000 crore in Q4-FY22).
Of the total order book, Rs 23,000 crore worth of projects are under execution. The company awarded Rs 2,500 crore worth of contracts in Q1-FY24 and plans to award another Rs 6,000 crore projects in Q2-FY24 and Rs 4000 crore in H2-FY24. Overall, it plans to award Rs 10,000–12,000 crore projects in FY24.
NBCC has monetised Rs 20 crore worth of real estate in Q1-FY24 and expects to monetise Rs 1,100 crore of its own projects in FY24. Incrementally, management is targeting more redevelopment projects going ahead as they enjoy higher margins. Till date, it has sold Rs 6,500 crore in the WTC project and expects to sell Rs 4,000 crore here in FY24 and Rs 1,350 crore in the Sarojini Nagar project. NBCC plans to sell Rs 2,000 crore in the Amrapali project, and complete the old orders FY24. It expects another order of Rs 8,000-9,000 crore in this project in September, 2023.
"While the book-to-bill at ~6.2x seems robust, Rs 23,000 crore worth of orders pertain to 'self-revenue generating projects', wherein the pace of real estate monetisation will determine execution. Improving margin trajectory, which has been disappointing over the past few years, and asset monetisation are key catalysts for the stock in the near-term," said analysts at Nuvama Institutional Equities.
It NBCC (India) reported net consolidated profit after tax of Rs 77.41 crore as against net consolidated loss after tax of Rs 4.84 crore in the corresponding quarter of the previous fiscal.
The company's net consolidated total income stood at Rs 1,917.87 crore, up 6.6 per cent from Rs 1,798.99 crore it recorded in the similar quarter last year, but down 31 per cent quarter-on-quarter.
Its Ebitda margin came in at 3 per cent (up 10bp YoY, but down 75bp QoQ).
NBCC had ended FY23 with a top line of Rs 8,750 crore, and expects FY24 revenues to be Rs 10,600 crore with Ebitda margins of 6-6.5 per cent (3.9 per cent in FY23) with PAT margins of 5 per cent (flat YoY).
The brokerage maintains 'Hold' on the stock. Their target of Rs 44 is, however, lower than current market price.