NBCC: This PSU stock gained over 110% just in a month, jumped nearly 400% in a year
Continuing their upward trajectory for the eighth consecutive trading session on Monday, shares of NBCC (India), the state-owned construction firm, surged by an additional 4.8% in today’s intraday session, reaching a new pinnacle at ₹176.85 per share. This surge has propelled the stock to deliver a multibagger return of 111.23% in just one month.
Impressively, it has seen a remarkable upward trend, rising by 284% in the last six months and soaring nearly 400% in the last one year. Notably, on February 01 and February 02, the stock recorded substantial gains of 10% and 19%, respectively.
This surge was notably triggered by the government’s robust emphasis on affordable housing in the Union Budget 2024–2025.
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Union Finance Minister Nirmala Sitharaman announced an ambitious plan to construct 20 million new houses over the next five years under the PM Awas Yojana (Pradhan Mantri Awas Yojana), a housing scheme initiated by the Government of India in 2015.
PMAY aims to provide affordable housing to economically weaker sections (EWS), low-income groups (LIG), and middle-income groups (MIG) through financial assistance and subsidies for construction or renovation.
Established in 1960 as the construction arm of the Government of India, NBCC achieved ‘Navratna’ status in 2014. Its core operations span three primary segments: project management consultancy (PMC), real estate development, and EPC contracting.
The real estate segment includes residential projects like apartments and townships, as well as commercial projects such as corporate office buildings and shopping malls.
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In January, NBCC shares marked an impressive return of nearly 59%, driven by a series of order wins. The company secured eight new orders during the month, building on the four orders received in December, as per the company’s exchange filing.
Notably, one substantial order was from the National Cooperative Development Corporation (NCDC) and the Primary Agriculture Cooperative Society (PACS) across various states. This order involves the construction of 1,469 warehouses and other agri-infrastructure, contributing to the World’s Largest Grain Storage Plan in the cooperative sector.
The total value of this significant order stands at ₹1,500 crore, propelling NBCC’s positive momentum.
Also Read: PSU stocks soar on capex boost in Budget 2024, BSE PSU index sets new record
Regarding financials, the company posted a consolidated net profit of ₹82 crore, compared to a net profit of ₹77 crore in Q1FY24 crore. Its revenue from operations was ₹2,053 crore in Q2 FY24, compared to ₹1,918 crore in Q1FY24.
Disclaimer: We advise investors to check with certified experts before making any investment decisions.
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Published: 05 Feb 2024, 02:55 PM IST
