This state-owned civil construction stock has zoomed over 100% in 1 month

Thus far in the financial year FY24, the stock price of NBCC (India|) has skyrocketed by 375 per cent.

Shares of NBCC (India) hit a record high of Rs 167.95, as they rallied 18 per cent on the BSE in Friday's intra-day trade on strong order inflows. The stock of state-owned civil construction company surpassed its previous high of Rs 145.65 touched on November 8, 2017.

In past one month, the market price of NBCC has zoomed 108 per cent after the company bagged multiple orders worth Rs 694 crore during in January 2024. Since April, thus far in the financial year 2023-24 (FY24), the stock price of the company has skyrocketed by 375 per cent from a level of Rs 35.39.

Among the major orders, NBCC received an order worth Rs 216 crore from National Institute of Fashion Technology (NIFT). The project entails the construction of the National Institute of Fashion Technology Campus at Varanasi, Uttar Pradesh, and the modification work of the existing trade facilitation centre as part of the campus.

NBCC is a government of India Navratna enterprise under the Ministry of Housing of Housing and Urban Affairs. At the end of November 1, 2023, the company had a consolidated order book position of approximately Rs 55,300 crore.

Meanwhile, Finance Minister Nirmala Sitharaman in her Interim Budget speech on Thursday said that Pradhan Mantri Awas Yojana (Grameen) is close to achieving the target of 30 million houses, with an additional 20 million targeted for next 5 years. The government will launch a housing scheme for the deserving middle class to buy or build their own houses.

"Our government will launch a scheme to help deserving sections of the middle class living in rented houses or slums or chawls and unathorised colonies to buy or build their own houses," said FM Sitharaman.

During FY24, NBCC bagged major orders including the development and monetisation of a major land parcel of Kerala state Housing Board (KSHB) – Rs 2,000 crore. The government presses redevelopment of Rs 750 crore.

NBCC in its FY23 annual report said that the company is in touch with various State Governments for redevelopment and land monetization of which major projects secured are PMC for redevelopment and modernization of Government of India Presses through self financing model at Mayapuri, New Delhi, Kolkata & Nasik and various high value major projects are likely to be secured in near future.

The huge infrastructure gaps in the country will increase the demand for the construction sector. Further, rapid population growth would lead to increased pace for urbanization. With renewed thrust of the government on infrastructure and real estate sectors, the company is poised for a phase of growth in the near and mid-term, the company said.

The company is on track to reap rich benefits both in India and overseas. Capitalizing on new market opportunities by strengthening its core competencies, pursuing high-value projects in domestic and overseas markets and diversifying into new areas of operation, NBCC is poised to achieve enviable heights in the near future, it added.