NBCC Secures ₹1,500 Cr Contract for Warehouse Construction, Stock Surges 6%

NBCC Limited witnessed a nearly 6% surge in its shares, reaching a new 52-week high of ₹84.75 in early trade on December 14. This surge follows the company's announcement of securing a project management consultancy contract worth ₹1,500 crore for the development of 1,469 warehouses and other infrastructure related to the agriculture sector.

The project, awarded by the National Cooperative Development Corporation (NCDC) and Primary Agriculture Cooperative Society (PACS) across various states, is part of the In May, the Union Cabinet gave its approval to the "World’s Largest Grain Storage Plan in Cooperative Sector. The goal is to build agricultural infrastructure at the Primary Agricultural Credit Societies (PACS) level. This includes warehouses, custom hiring centers, processing units, Price Shops, and more. The approach involves a comprehensive 'whole-of-government' strategy.

This latest contract highlights NBCC's continued commitment to contributing to the agricultural sector's growth and aligns with the broader national vision for enhancing storage and processing capabilities in the cooperative sector.

NBCC signs MoU with ICAI

NBCC signed a Memorandum of Understanding (MoU) with the Institute of Chartered Accountants of India (ICAI) in November. Under this agreement, ICAI has entrusted NBCC with the planning, designing, and execution of its buildings and renovation works at various locations in India. This project will be undertaken on a turnkey basis, showcasing NBCC's diverse capabilities in the construction and infrastructure domain.

Financial Performance

With a market capitalization of ₹14,427 crore, NBCC has demonstrated robust performance in 2023, with its shares rallying by 97.66%.NBCC reported a 52% yoy jump in profit in the September quarter. The order book for the quarter remained stable at Rs 55,000 crore.

Looking ahead, NBCC's management has guided for the fiscal year 2024, targeting revenues of ₹11,000 crore and aiming for EBITDA margins in the range of 5-5.5%. This forward-looking guidance reflects the company's planning and confidence in sustaining growth in the coming fiscal year.

Previous Order

NBCC Limited has secured two orders in October 2023. The Visakhapatnam Port Authority awarded a ₹80 crore contract for the renovation of office buildings at Visakhapatnam Port, highlighting NBCC's expertise in infrastructure renewal. 

Additionally, NBCC secured a ₹25.19 crore order from the Ali Yavar Jung National Institute in Mumbai for constructing a permanent building at Chhatarpur, Madhya Pradesh, supporting the institution's commitment to disabilities. These achievements further strengthen NBCC's presence and emphasize its diverse capabilities in construction and renovation projects.