Stock of this PSU civil construction company zoomed over 60% in 3 months

Share of NBCC (India) hit over 5-year high at Rs 69.90, as they rallied 8 per cent on the BSE in Thursday's intra-day trade in an otherwise weak market on back of heavy volumes.

Shares of NBCC (India) hit over five-year high at Rs 69.60, as they rallied 8 per cent on the BSE in Thursday’s intra-day trade in an otherwise weak market on the back of heavy volumes.

The stock of state-owned civil construction company was trading at its highest level since April 2018. In past three months, the stock price of NBCC has zoomed 67 per cent on back of multiple order wins.

The average trading volumes on the counter has more-than-doubled today. A combined 81.31 million equity shares representing 4.5 per cent of total equity of NBCC changed hands on the NSE and BSE till 10:50 AM. In comparison, the S&P BSE Sensex was down 0.52 per cent at 65,533.

Last week, NBCC said it won an order worth of Rs 80 crore from Visakhapatnam Port Authority for renovation/ refurbishment of office buildings. The company also received work order of Rs 25.19 crore from Ali Yavar Jung National Institute of Speech and Hearing Disabilities (Divyangjan), AYNISHD, Mumbai for construction of permanent building of Newly Approved Composite Regional Centre (CRC) at Chhatarpur, Madhya Pradesh.

Last month, NBCC had won Rs 100 crore contract from the state-owned Steel Authority of India (SAIL) for construction of various development work at township and mines of SAIL’s Bhilai Steel Plant.

NBCC established in 1960 as the construction arm of the Government of India to execute civil engineering projects for the state governments, various central government ministries, public and private sectors. The company’s area of business includes Project Management Consultancy (PMC), Engineering Procurement & Construction (EPC) and Real Estate Development.

NBCC is actively engaged in the development of Smart Cities. NBCC will benefit from its versatile infrastructure portfolio and its expertise. NBCC has also been appointed as Land Management Agency (LMA) by the Government of India for disposing of land / immovable assets of sick public sector undertakings (PSU’s). The Hon’ble Supreme Court vide its order, appointed NBCC as Project Management Consultant to complete stalled projects of the Amrapali Group.

NBCC in its FY23 annual report said that the company is in touch with various State Governments for redevelopment and land monetization of which major projects secured are PMC for redevelopment and modernization of Government of India Presses through self financing model at Mayapuri, New Delhi, Kolkata & Nasik and various high value major projects are likely to be secured in near future.

The huge infrastructure gaps in India will increase the demand for construction sector. Further, rapid population growth would lead to increased pace for urbanization. With renewed thrust of the government on infrastructure and real estate sectors, the Company is poised for a phase of growth in the near and mid-term, NBCC said.