63% Dividend, 1:2 Bonus Issue: Multibagger NBCC Shares Sink 18.53%, Check Near Term TP By 2 Analysts

Navaratna PSU NBCC (India) Ltd shares recorded steep decline of 18.53% in last 7-days only and slipped over 22% in last 2-weeks. However, NBCC (India) stock surged 61% so far in 2024 and delivered multibagger returns of 107% in last 1-year. The company won two orders on October 22, 2024 worth Rs 41.00 crore and 1322 crore. The latest decline in NBCC (India) shares pushed the stock price below Rs 90. Its ROE is 17.20 and PE is 43.04. The civil construction sector company has a market capitalisation of Rs 23,746.50 crore.

LIC stake in NBCC stood at 5.11% with 137,911,863 shares. The PSU has already recommended 1:2 bonus issue with ex-bonus date set as October 7, 2024. It also recommended a dividend of Rs 0.63 per share and ex-dividend date was September 6, 2024. Should you buy the scrip amid recent decline? Find out below:

NBCC (India) Shares Performance: NBCC (India) shares declined 23.50% in last 1-month, fell 24.80% in last 3-months and soared 303% in last 2-years, and offered stunning returns of 189% in last 3-years. The scrip's 52-week high price on BSE stood at Rs 139.90 per share (as on 28/08/2024) and 52-week low price is Rs 40.52 per share (as on 26/10/2023).

NBCC's Subsidiary HSCC Wins Orders: As per the BSE filing dated October 22, 2024, "the first order is worth Rs 642.69 crore for construction of additional 500 Beds (enhancement of bed strength from 650 to 1150 beds) at ESIC medical college and Hospital at Faridabad on deposit mode basis. Meanwhile, the second order is worth Rs 679.79 crore for construction of 500 Bedded ESIC Hospital at Manesar (Gurugram), Haryana on deposit mode basis."

Should You Buy NBCC Shares? According to latest report of A R Ramachandran, Independent SEBI Research Analyst said, ""NBCC is bearish but also oversold on the Daily charts with strong resistance at 95. A Daily close above this resistance could lead to target of 118 in the near term. Next support will be at 81."

Meanwhile, Choice Broking recommended sell on rise call for the stock and urged to enter short positions if NBCC shares surge towards Rs 104 with target near Rs 97 zone and maintain stop loss aboe Rs 105.

Shareholding: FII/FPI have decreased holdings from 4.43% to 4.11% in September 2024 quarter. Number of FII/FPI investors surged from 155 to 173 in September 2024 quarter. Mutual Funds have increased holdings from 3.04% to 3.45% in September 2024 quarter. Number of MF schemes zoomed from 13 to 18 in September 2024 quarter. Institutional Investors reduced holdings from 13.91% to 13.21% in September 2024 quarter, according to Trendlyne.

About: It came into existence in 1960 as a Government 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.

Disclaimer: The stock has been picked from the brokerage report of A R Ramachandran and Choice Broking. Greynium Information Technologies, the Author, and the respective Brokerage House are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to check with certified experts before taking any investment decision.