Active Stocks
Mon Mar 04 2024 15:59:52
  1. Tata Steel share price
  2. 153.10 -1.32%
  1. NTPC share price
  2. 353.80 3.50%
  1. Bharti Airtel share price
  2. 1,137.00 0.57%
  1. Larsen & Toubro share price
  2. 3,643.95 -0.28%
  1. Power Grid Corporation Of India share price
  2. 294.45 2.63%
Business News/ Markets / Stock Markets/  NBCC stock slides for 6th day in a row, locked in 10% lower circuit; here's why
BackBack

NBCC stock slides for 6th day in a row, locked in 10% lower circuit; here's why

The decline can be attributed to profit booking, as the stock had been on an upward trajectory between January 19 and February 02, delivering a stellar return of 93.5% in just two-week period, surging in value from ₹87.20 apiece to ₹168.65.

In January, the company secured eight new orders, building on the four orders received in December, as per the company's exchange filing. (Pixabay)Premium
In January, the company secured eight new orders, building on the four orders received in December, as per the company's exchange filing. (Pixabay)

Continuing their bearish trend for the sixth consecutive trading session, shares of NBCC (India), the state-owned construction firm, were locked in the 10% lower circuit at 133.15 apiece in today's session. This marks a cumulative drop of 21% over the six-day period.

The decline can be attributed to profit booking, as the stock had been on an upward trajectory between January 19 and February 02, delivering a stellar return of 93.5% in just two-week period, surging in value from 87.20 apiece to 168.65.

Also Read: Mamaearth share price jumps nearly 10% as net profit soars 264% in Q3

On February 01 and February 02, the stock recorded substantial gains of 10% and 19%, respectively. This surge was triggered by the government's robust emphasis on affordable housing in the Union Budget 2024–2025.

In terms of the stock's monthly performance, it finished 10 out of the last 11 months in positive territory, posting gains of 289%. The stock recorded its best monthly performance in January, with a gain of 59%, followed by July and November, with returns of over 16.6% and 16%, respectively. 

In January, the company secured eight new orders, building on the four orders received in December, as per the company's exchange filing.

Also Read: PSU stocks rally: Market ignoring large downside risks, says Kotak Equities

Notably, one substantial order was from the National Cooperative Development Corporation (NCDC). This order involves the construction of 1,469 warehouses and other agri-infrastructure, contributing to the World's Largest Grain Storage Plan in the cooperative sector. The total value of this significant order stands at 1,500 crore.

Looking at the company's financials, the company posted a consolidated net profit of 82 crore in Q2, compared to a net profit of 77 crore in Q1 FY24 crore. Its revenue from operations was 2,053 crore in Q2 FY24, compared to 1,918 crore in Q1 FY24.

Also Read: SBI emerges as second PSU firm to surpass 6 lakh crore market cap

Established in 1960 as the construction arm of the Government of India, NBCC achieved 'Navratna' status in 2014. Its core operations span across three primary segments: project management consultancy (PMC), real estate development, and EPC contracting.

The real estate segment includes residential projects like apartments and townships, as well as commercial projects such as corporate office buildings and shopping malls.

 

Disclaimer: We advise investors to check with certified experts before taking any investment decisions.

Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!

Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Check all the latest action on Budget 2024 here. Download The Mint News App to get Daily Market Updates.
More Less
Published: 12 Feb 2024, 11:46 AM IST
Next Story footLogo
Recommended For You
GENIE RECOMMENDS

Get the best recommendations on Stocks, Mutual Funds and more based on your Risk profile!

Let’s get started
Switch to the Mint app for fast and personalized news - Get App

Chat with MintGenie