NCC share price zooms 4% to hit 6-week high on ₹1480 crore order win; up over 20% in March

Shares of NCC, one of India’s largest and most diversified construction companies, spiked 4% in early morning trade on Monday, March 24, reaching a 4-week high of ₹214 per share following a significant domestic order win.

In its regulatory filing on Saturday, the company informed investors that it had secured an order worth ₹1,480 crore from Bihar Medical Services & Infrastructure Corporation Limited for the redevelopment of Darbhanga Medical College & Hospital (DMCH) at Laheriasarai, Darbhanga.

This was the second major order win for the company in less than two weeks, as it had earlier bagged a ₹2,129 crore contract for the construction of roads, drains, water supply, sewage, utility ducts for power and ICT, reuse water lines, and avenue plantation on a lump-sum contract (percentage tender) basis. This order was awarded by the Andhra Pradesh Capital Region Development Authority.

Compared to the previous two months, the company has secured a series of large orders in March, fueling a strong rally in its stock price. In January 2025, NCC Limited received an order worth ₹424.79 crore (excluding GST), followed by another contract worth ₹218.82 crore (excluding GST) in February 2025.

Stock rebounds 21% in March but still trades 42% below recent peak

Amid a series of strong order wins, investor sentiment turned bullish on the stock in March, after it had been battered for six consecutive months, resulting in a 51% correction. This month, the stock has rebounded 21%, but it remains 42% below its recent peak.

The shares closed February with a 31% decline after the company delivered a weak set of numbers for the December quarter, missing street estimates. Investor sentiment was further dampened by rising debt levels and the management’s decision to cut revenue growth and margin guidance for FY25.

NCC is one of India's largest infrastructure conglomerates, with a diversified presence across key construction segments, including buildings and housing, roads, water and environment, irrigation, metals, mining, and railways. The sector continues to benefit from the government's strong focus on infrastructure spending.

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.