Navratna PSU Stock Rises 100% in Six Months After Hitting a 52-week High Following a Rs. 1,500-Crore Order Win

After the Navratna PSU company announced that it had received an order worth Rs 1,500 crore from the National Cooperative Development Corporation (NCDC) to construct warehouses and other agricultural infrastructure under the world’s largest grain storage plan in the cooperative sector at various locations in India, shares of NBCC (India) Ltd. surged by almost 6% to a new 52-week high today. NBCC would take on project management duties and provide EPC mode consulting.

The company’s market value increased to Rs 14,965 crore.
On the BSE, NBCC’s shares increased by 5.73% to a peak of Rs 84.75. NBCC’s shares closed at Rs 80.15 on Wednesday.

The PSU stock has increased by 105% this year and by 99.71% in the last six months.
10.26 lakh shares of the company were traded during the current session, generating a BSE turnover of Rs 8.60 crore. With a beta of 0.2, NBCC shares are expected to have minimal annual volatility.

Technically speaking, the NBCC stock’s relative strength index (RSI) is 68.4, indicating that it is not trading in the overbought nor oversold range. The 5 day, 10 day, 20 day, 50 day, 100 day, 150 day, and 200 day moving averages are all being outperformed by the price of NBCC shares.

In comparison to a profit of Rs 95.5 crore during the same period last year, NBCC recorded a consolidated net profit of Rs 79.6 crore in the second quarter of this fiscal year.

In the September quarter of the 2023–24 fiscal year, total income increased to Rs 2129 crore from Rs 2073.9 crore during the same period the previous year. The quarter’s order book, which totaled Rs 55,000 crore, remained flat sequentially. For FY24, the NBCC management has projected sales of Rs 11,000 crore and EBITDA margins of 5-5.5 percent.

NBCC (India) Limited offers services with additional value. The organization functions via three divisions: Real Estate Development, Engineering Procurement and Construction (EPC), and Project Management Consultancy (PMC). Project execution for the Pradhan Mantri Gram Sadak Yojna (PMGSY), infrastructure projects for the civil sector, infrastructure works for national security, and developmental activities in the Northeastern Region are all undertaken by the PMC segment.