1:2 Bonus + Rs 0.63/Dividend YTD: Should You BUY Navratna PSU Stock That Gained 101% In 1-Year; Q2 Strong

Navratna PSU company, NBCC's share price plunged by a whopping 9% last week. The last bit of gains that emerged in the stock was fuelled by double-digit growth in Q2 net profit, however, broadly the stock ended the trading week from November 11-15 in red. Should you buy NBCC shares after its Q2 results?

NBCC Share Price:

The stock price closed at Rs 89.96 apiece, up by 0.7% on BSE with a market cap of Rs 24,289.20 crore. NBCC shares have started to correct in the past six months as it recorded a significant upside at the start of 2024. YTD, the stock is still up by 65% on BSE so far. However, in the past six months, the stock dipped by 5.14%, and in a month, the downside is about 18.40%, squeezing its growth.

In a year though, NBCC is among the top PSU multibaggers with gains of more than 101% on BSE. The stock's 52-week high and low are at Rs 139.90 apiece and Rs 42.55 apiece respectively,

NBCC Q2 Results:

The company posted a strong performance in the second quarter of FY25. Its net profit stood at Rs 122.12 crore in Q2FY25, registering a growth of 53.43% year-on-year and 16.72% quarter-on-quarter. While revenue surged to Rs 2,548.73 crore in the quarter.

NBCC Shares BUY/SELL?

As per Trendlyne data, the consensus recommendation from 4 analysts for NBCC (India) Ltd. is SELL. The average 1-year target price however is set higher at Rs 97.25 apiece, hinting at over 8% potential upside ahead.

NBCC Corporate Actions:

NBCC has a long history of bonus issues, stock splits and dividend payout.

In 2024 so far alone, NBCC shares have rewarded bonus issue of 1:2 ratio for which it turned ex-date on October 7, 2024. While the company has delivered up to Rs 0.63 per share as a dividend and its ex-date was on September 6, 2024.

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 the highest standard of quality, timely delivery and a dedicated workforce.

NBC C's areas of operation encompass three (03) Primary Segments namely:

- Project Management Consultancy (PMC): Executing landmark projects in diversified sectors as well as Redevelopment Projects for the Government.

- Engineering Procurement & Construction (EPC): Working in a niche market and constructing Chimneys and cooling Towers for the Power Sector.

- Real Estate Development: Developing Residential and Commercial inventories for Governments and the Public at large.