NBCC, a Navratna PSU engaged in civil construction, has witnessed sharp correction in its weekly and monthly performance. The midcap stock listed under BSE 500, could not grab bulls' attention despite winning three back-to-back deals worth over Rs 1,263 crore at the latest, which comes after the company's bonus issue allotment. There is mixed opinion in holding NBCC shares.
NBCC Share Price:
On Tuesday, October 15, NBCC's share price ended at Rs 112.60 apiece, down by 0.62% on BSE with a market cap of Rs 30,402.00 crore. The stock's 52-week high and low are at Rs 139.90 apiece and Rs 40.52 apiece respectively,
The price-to-equity ratio is at 55.10 x, while the return on equity is at 17.20%. However, NBCC's monthly performance is down by 4.3% so far, while on a week-on-week basis, the stock dipped by 3.4% on BSE.
Despite this, NBCC continues to be a multi-bagger of 2024, with gains of 106.16% so far in 2024. However, the latest correction has squeezed in the gains of NBCC.
NBCC Big Orders:
On October 10, NBCC won orders worth Rs 198 crore for Designing, Supplying, Installation, and Rooftop Solar System in the Bokaro Steel Plant at Bokaro Jharkhand.
This followed yet another big order of Rs 1,000 crore through its subsidiary, Hindustan Steelworks Construction. The order includes Campus Development of Gondwana University, Gadchiroli, Maharashtra.
Further, on October 11, NBCC won two deals worth Rs 32.76 crore and Rs 32.36 crore respectively.
The Rs 32.76 crore deal includes the construction of permanent campus for JNV, Distt, East Delhi, Delhi (U.T. of Delhi)-Additional Sanction. The Rs 32.36 crore deal includes the Construction of a permanent campus for JNV, Distt, Shahdara (Delhi) (U.T. of Delhi)-Additional Sanction.
Cumulatively, between October 10-11, the company bagged Rs 1,263.15 crore order book.
NBCC Bonus Issue:
NBCC has allotted 90,00,00,000 (Ninety Crore) fully paid-up Bonus Equity Shares of the Face Value of Rs 1 (Rupee One only) each in the ratio 1:2 i.e., One (1) new Equity Bonus Share of Rs 1/- each fully paid-up for every Two (2) existing Equity Shares of Rs 1/- each fully paid-up, held by the shareholders of the Company as on the record date i.e. Monday, October 07, 2024.
The bonus issue ratio was 1:2.
BUY/SELL NBCC Shares?
As per Trendlyne data, the consensus recommendation from 4 analysts for NBCC (India) Ltd. is SELL. The average 1-year target price is set at Rs 97 apiece, hinting at nearly 14% potential downside ahead.
However, brokerage Antique Stock Broking has suggested SELL on NBCC but the target price is steeply lower to Rs 30.
Among key fundamentals for the stock, as per Trendlyne are - Stock Price rose 168.24% and outperformed its sector by 120.85% in the past year; Debt to Equity Ratio is zero as the company is debt-free; Mutual Fund Holding increased by 0.06% in the last quarter to 3.04; Return on Equity(ROE) for the last financial year was 18.04%, in the normal range of 10% to 20%.; however, Price to Earning Ratio is 70.57, higher than its sector PE ratio of 41.13.
Founded in 1960 as a Govt. of India Civil Engineering Enterprise, NBCC with its Headquarter in Delhi, today, holds the status of Navratna CPSE, and has emerged as the undisputed leader in the Construction Sector on the back of its capabilities, innovative approach, adherence to highest standard of quality, timely delivery and a dedicated workforce.
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