NBCC share price jumps 5% to hit 52-week high as it secures ₹80 crore work order

NBCC news: NBCC share price surged 5% to touch 52-week on Monday's trading session following the receipt of a work order worth ₹80 crore for the renovation and refurbishing of an office block from the Visakhapatnam port authority. NBCC share price today opened at ₹64 apiece on BSE. NBCC shares touched intraday high of ₹66.20 and low of ₹63.78. 

The time period by which the order is to be executed is yet to be decided, said the company in an exchange filing. 

Earlier in October, NBCC received orders worth 25.19 crore from Ali Yavar Jung National Institute of Speech and Hearing Disabilities (Divyangjan), AYNISHD, Mumbai for construction for building, as per exchange filing, dated October 3.

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According to brokerage firm Geojit Financial Services, the standalone order book for Q1FY24 was ₹45,000 crore; of this amount, 40% of the orders, or ₹18,000 crore, are still being executed.

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NBCC reported a weaker-than-expected 8.5% YoY revenue growth in Q1FY24. This was attributed to lower PMC segment execution and a 51% YoY fall in real estate sales.

According to the brokerage report, in Q1FY24, earnings before interest, taxes, depreciation, and amortisation (EBITDA) margin decreased by 32 basis points YoY to 3.2%, mostly due to increased input costs and an increase in other expenses.

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"The management expects to achieve ₹9,000 crore of revenue in FY24, however due to delay in project awarding and execution we reduce revenue estimate by 7% and 4% for FY24/FY25, respectively. We expect the pace of monetisation of the real estate assets in the redevelopment project to be the key to achieving top-line growth.

We maintain SELL rating due to continuing pressure on project awarding and margins. We value NBCC‘s core business at a P/E of 20x on FY24E EPS & ₹2/share for land parcels held with a target price of ₹53," said the brokerage house its report last month.

On the technical front, NBCC share price has been forming a higher top higher bottom structure. Hence, the trend remains positive. For short term, the 40 DEMA at ₹56 will be seen as immediate support, according to Ruchit Jain, Lead Research Analyst at 5paisa.

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According to Rajesh Bhosale - Equity Technical and Derivative Analyst, Angel One, NBCC share price has demonstrated impressive performance throughout the current calendar year, consistently following an upward trend characterised by higher highs and higher lows. 

Although there was a recent period of consolidation, prices have since re-initiated their primary upward trajectory by surpassing this congestion. The next immediate target stands at 72, while 61 serves as a crucial support level.

NBCC share price has surged 68% so far in 2023. 

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Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.