Navratna PSU company, NBCC (India) Ltd is all set to turn ex-bonus on Monday, October 7, 2024. That would mean it is also the last date to be eligible for NBCC's bonus rewards. The midcap PSU stock is a 2024 star performer, emerging as a multi-bagger with gains of more than 100%. The stock is affordable as well, trading below Rs 200. Brokerages like Nuvama and Geojit have recommended HOLD on NBCC.
NBCC Share Price:
Ahead of the ex-bonus date, NBCC's share price ended at Rs 169.05 apiece on BSE, with a market cap of Rs 30,429.00 crore. The stock is a couple of rupees away from its 52-week high of Rs 209.75 apiece, while the stock is up by 193.5% from its 52-week low of Rs 57.58 apiece.
NBCC is a 2024 multibagger. YTD, the stock is up by 107% on BSE. In a year, the upside was at a whopping 177%.
NBCC Bonus Issue:
NBCC has fixed October 7 as the record date for determining eligible shareholders for its upcoming bonus issue of 1:2. Simply put, NBCC is set to allot 1 free share as a bonus on the existing 2 shares.
Notably, October 7 is also the ex-bonus date.
For example: If an investor held 500 shares of NBCC till October 7, then they will receive 250 bonus issues (500 shares/ 2 shares). This will take the total number of shares to 750 shares. However, the share price of NBCC will also be adjusted accordingly.
This will be the second bonus issue by NBCC. The first bonus issue was also of 1:2 but carried in February 2017.
Apart from holding a record of bonus issues, NBCC stock has split twice. It carried a 1:5 stock split in June 2016, and another 1:2 split in April 2018. While since August 2012, the company distributed up to 15 dividends, as per Trendlyne data. Currently, it has a dividend yield of 0.37%.
BUY/SELL/HOLD NBCC Shares:
Earlier, in September, brokerage Nuvama stated that NBCC is well placed for growth with i) a robust order book of INR813bn (book-to-bill at ~7.6x); ii) strong order accretion with year to FY25 order-wins at INR198bn (INR235bn in FY24); and (iii) improving real estate monetisation (realty monetisation at the Nauroji Nagar project was INR134bn versus its expected realisation of INR125bn). A buoyant realty cycle is resulting in improved opportunities for the company with many PSUs/government looking to monetise surplus land holdings.
Accordingly, on the valuation, Nuvama said, "An improvement in order intake, execution and margins along with traction in real estate monetisation bode well for the company. Retain 'HOLD' with an unchanged TP of INR198."
Meanwhile, also brokerage Geojit said, with stronger than expected tendering activity and pickup in execution, "we largely maintain the FY25 and FY26 revenue estimates. However, the rich valuation restricts the upside potential of the stocks. Therefore, we maintain our HOLD rating and the value of NBCC's core business at a P/E of 51x on FY26E EPS and the book value of the land parcel at Rs.5/share to arrive at the SOTP target price of Rs.189."
NBCC Ltd (NBCC) is a Navaratna Enterprise under the Ministry of Urban Development and their business verticals include, Project Management Consultancy (PMC), Engineering Procurement & Construction (EPC) and Real estate business.
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