Navratna company NBCC (National Building Construction Company) announced new work orders worth approximately ₹300 crore on December 20, 2024. Despite this positive development, the company’s shares closed with a 2.75% decline at ₹94.44 on Friday.
Details of the Work Orders
NBCC disclosed that it secured a contract worth ₹200.60 crore from Oil India Limited to construct an Oil Hospital. Additionally, its subsidiary, HSCC (India), bagged a separate order valued at ₹98.17 crore. Earlier this month, NBCC had also received work orders worth ₹600 crore.
Strong Financial Performance
In the September quarter, NBCC reported a net profit of ₹125.10 crore, marking a robust 52.80% year-on-year growth compared to ₹81.90 crore in the same period last year. The company’s revenue for the quarter stood at ₹2,458.70 crore.
Market Performance of NBCC Shares
While NBCC’s shares have seen a 4.86% decline over the past week and a 13.35% drop in the past six months, long-term investors remain in profit. Over the last two years, NBCC’s stock has delivered a remarkable 240% return. The stock’s 52-week high stands at ₹139.90.
Government and Public Stake
The Indian government holds a 61.80% stake in NBCC, while the public owns 25.04%.
Investor Insights
Despite recent market volatility, NBCC’s consistent order inflow and strong financial growth suggest a positive long-term outlook. Investors may find the stock attractive given its history of delivering substantial returns and its promising pipeline of projects.
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