NBCC gains on likely JV with Rajasthan Govt

National Buildings Construction Corporation rose 1.98% to Rs 431.75 at 10:11 IST on BSE after the company said it is in advance stage of forming a joint venture company with the Rajasthan government.

The company made the announcement after market hours on Tuesday, 15 July 2014.

Meanwhile, the BSE Sensex was up 84.67 points, or 0.34%, to 25,313.32.

On BSE, so far 79,000 shares were traded in the counter, compared with an average volume of 1.95 lakh shares in the past one quarter.

The stock hit a high of Rs 439.70 and a low of Rs 427.50 so far during the day. The stock hit a record high of Rs 486.90 on 8 July 2014. The stock hit a 52-week low of Rs 96 on 2 August 2013.

The stock had outperformed the market over the past one month till 15 July 2014, rising 41.47% compared with the Sensex being flat in the same period. The scrip had also outperformed the market in past one quarter, rising 137.04% as against Sensex's 12.20% rise.

The mid-cap company has an equity capital of Rs 120 crore. Face value per share is Rs 10.

In the state budget speech, Chief Minister of Rajasthan had announced to form a joint venture (JV) company with National Buildings Construction Corporation (NBCC) to execute various re-developmental works and construction projects in the state.

In this regard, signing of agreement is in advance stage, NBCC said in a statement.

NBCC was granted Navratna status with effect from 23 June 2014 on the basis of its performance upon fulfilling the criteria prescribed by Department of Public Enterprises.

Net profit of NBCC rose 11.42% to Rs 106.93 crore on 12.24% rise in net sales to Rs 1445.24 crore in Q4 March 2014 over Q4 March 2013.

NBCC provides civil engineering construction services in wide gamut of projects of varied nature, complexities & at socio-political geographical locations, both at home & overseas. NBCC has been operating in infrastructure segment as well, wherein it has been executing projects such as chimneys, cooling towers, and various types of power plant works.

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