NBCC secures contracts worth Rs 450 cr in Chhattisgarh and Kerala

NBCC India shares are attracting attention today after the announcement by the government-owned civil construction firm that it has secured contracts valued at ₹450 crore in Chhattisgarh and Kerala. NBCC India operates in the fields of project management consultancy and real estate. The company has announced that it received these contracts from the Court Receiver of the Supreme Court of India.

In a regulatory disclosure, NBCC revealed that it has secured contracts totaling ₹450 crore from the Court Receiver of the Supreme Court of India. Additionally, NBCC has been awarded a ₹250 crore contract for the Amrapali Vananchal City project in Bhilai District, Chhattisgarh, and contracts worth ₹150 crore for the Amrapali Cosmos project in Aluva, Ernakulam District, Kerala.

As directed by the Supreme Court, the Amrapali Stalled Projects Investments Reconstruction Establishment (ASPIRE) was created to complete the unfinished projects of Amrapali, with NBCC (India) Ltd, a state-owned enterprise, appointed to execute the task. NBCC has been tasked with the completion and delivery of 38,000 flats to homebuyers.

The stock of the Navratna PSU, NBCC, closed 5.72% higher at ₹135.85 on Wednesday, 8 May. Over the past year, shares of NBCC have surged by 224.77% and have gained 66.10% in 2024 alone. The market capitalization of the firm rose to ₹24,453 crore. On Wednesday, a total of 11.14 lakh shares of NBCC were traded, resulting in a turnover of ₹15 crore.

Technically speaking, the Relative Strength Index (RSI) for NBCC stock is at 55, indicating that the stock is neither in an overbought nor an oversold condition. Additionally, NBCC shares are currently trading above all major moving averages, including the 5-day, 10-day, 20-day, 50-day, 100-day, 150-day, and 200-day averages, reflecting a strong upward momentum in its price.

NBCC (India) Ltd. recorded a significant 60.2% year-on-year increase in its net profit, reaching ₹110.7 crore for the quarter ending December 31, 2023. In the same quarter of the previous year, the company reported a net profit of ₹69.1 crore. Additionally, the company's revenue from operations rose by 13%, amounting to ₹2,412.6 crore, compared to ₹2,135.8 crore in the corresponding quarter of the previous fiscal year.

At the operating level, NBCC (India) saw its EBITDA (earnings before interest, tax, depreciation, and amortisation) increase by 23.2% to ₹117.3 crore in the third quarter of this fiscal year, up from ₹95.2 crore in the same period of the previous fiscal year. The EBITDA margin improved to 4.9% in the reported quarter from 4.5% in the year-ago period, indicating better operational efficiency.

In 2019, following a petition by homebuyers demanding the delivery of their flats in projects launched in 2010, the Supreme Court appointed NBCC as the project management consultant to oversee the completion of dormant projects by the Amrapali group in Noida and Greater Noida. This action was reported by The Hindustan Times.

NBCC (India) Limited offers a range of value-added services and operates through three main segments: Project Management Consultancy (PMC), Real Estate Development, and Engineering Procurement and Construction (EPC). The PMC segment undertakes various civil construction projects, including infrastructure works crucial for national security, civil sector infrastructure projects, and project implementation for Pradhan Mantri Gram Sadak Yojna (PMGSY), as well as developmental initiatives in the Northeastern Region of India.