Multibagger NBCC India stock soars over 8% on major order win; details here

Shares of construction major NBCC (India) rallied over 8 percent in intra-day deals on Monday after the state-owned company announced that its arm, HSCC (India) Limited, has secured a significant order worth ₹411.45 crore. This development marks another milestone for the company as it continues to expand its portfolio of high-value projects.

HSCC (India), a wholly owned subsidiary of NBCC (India), has secured this order from the Medical Education & Ayush Department, Government of Maharashtra. Under the terms of the order, HSCC (India) will be responsible for constructing a new government medical college with a capacity of 100 students and a 430-bed hospital in Buldhana, Maharashtra, as per a statement released by NBCC.

Following this announcement, NBCC’s stock surged as much as 8.1 percent to reach a day's high of ₹188.80. This puts the stock just around 5 percent away from its peak of ₹198.25, achieved on July 9, 2024. The stock has experienced remarkable growth, soaring 344 percent from its 52-week low hit on July 28 last year.

Over the past year, NBCC shares have rallied over 303 percent, with a notable jump of over 131 percent in 2024 year-to-date (YTD). The stock has provided positive returns in six of the seven months this year, advancing 17.5 percent in July alone, extending gains for the fourth consecutive month. It saw a 10 percent rise in June, 2.2 percent in May, and a 17.5 percent gain in April. The only exception was March 2024, where the stock dipped by 12 percent. Earlier in the year, the stock also added 4.5 percent in January and 58.7 percent in February.

Financially, NBCC has shown robust performance. The company's profit rose 24.6 percent year-on-year to ₹141.5 crore in the March quarter of FY24, up from ₹113.6 crore in the same quarter the previous year. Additionally, NBCC’s revenue surged 43 percent annually to ₹4,025 crore in Q4FY24, compared to ₹2,814 crore in Q4FY23. On the operating front, earnings before interest, taxes, depreciation, and amortisation (EBITDA) more than doubled to ₹240.2 crore in Q4FY24 from ₹104.5 crore in Q4FY23. The EBITDA margin also improved significantly, increasing by 230 basis points to 6 percent in Q4FY24 from 3.7 percent in Q4FY23.

NBCC (India) is a prominent construction company that provides a wide range of services, including project management consultancy, real estate development, engineering procurement, construction, and civil engineering. The company also specialises in water treatment plants, water supply networks, and solid waste management.