Navratna CPSE Hit 52-Week-High As Board Sets Record Date For 54% Dividend: Buy?

A Navratna CPSE operating in the industrial and construction sectors is National Buildings Construction Corporation Limited (NBCC). NBCC, with its headquarters in Delhi, was established in 1960 as a Government of India Civil Engineering Enterprise. It now bears the rank of Navratna CPSE and has become the leader in the construction sector. NBCC has worked on a variety of projects in the institutional, housing, industrial & environmental, transportation, and power sectors, among others.

NBCC Dividend

"The Company has fixed Friday, September 01, 2023 as the Record Date for determining shareholders eligible to receive final dividend of Rs.0.54/- per paid up equity share of Rs. 1/-each (i.e.@ 54%) for the FY 2022-23 subject to the approval of Shareholders at the 53 rd AGM of the shareholders. The dividend recommended, if approved at the AGM, would be paid within the stipulated period of 30 days of declaration," said NBCC in a stock exchange filing.

NBCC Results

The company said in a BSE filing that its net profit climbed to Rs 77.41 crore for the quarter ended June 30, 2023, up from a net consolidated loss after tax of Rs 4.84 crore in the equivalent quarter of the previous fiscal. From Rs 1,798.99 crore in Q1FY23 to Rs 1,917.87 crore in Q1FY24, the net consolidated total income jumped by 6.61 percent. EBITDA for the firm climbed 32.5 percent YoY to Rs 53.1 crore. The margins for EBITDA improved by 60 basis points to 2.8 percent.

NBCC Share Price Target

Om Mehra, Equity Technical Analyst · Choice Equity Broking said "NBCC is currently trading at 49 after attaining all time high of 51. Simultaneously from the weekly chart it has buoyant support at around 44-45 levels. However small profit booking from higher levels cannot be ruled out. Stock is trading higher than 50 and 200 day moving averages. RSI currently remains at 70. The Fibonacci retrenchment of 23.6 percent ties with the 47 level indicates affirmative support as well."

"Higher Volume participation in the daily chart confirms the positive price action. Furthermore, investors would expect stronger outcomes from the realty sector Index as well. Indicator as Bollinger bands indicate the stock is trading above the middle band as well buyers are fascinated at current market price. One can accumulate in tranches and in pull back. Based on the above parameters we remain optimistic on NBCC as it may potentially deliver decent returns in the short to medium term," said Om Mehra.

On Friday, the shares of NBCC (India) opened at Rs 49.79 apiece and hit a fresh 52-week-high of Rs 51.20 during the morning deals. While writing this copy the scrip was trading at Rs 49.10 up by 3.09% from the previous close of Rs 47.63. The stock had made a 52-week-low of Rs 29.85 on (30/09/2022).

Disclaimer

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