Introduction:
In Thursday’s intra-day trading, shares of the state-owned National Buildings Construction Corporation (NBCC) experienced a remarkable surge of 8.4%, reaching Rs 141 per share on the BSE. This surge was fueled by the disclosure made by the public sector undertaking (PSU) on Wednesday, revealing that it had clinched a total of 13 orders amounting to Rs 491 crores.
One notable order entails the construction of a multifacility healthcare complex in Antop Hill, Mumbai, for the state’s Central Government Health Scheme (CGHS), with a value of Rs 112 crore.
Additionally, NBCC secured an order from the Department of Social Security and Empowerment of Persons with Disabilities for the construction of an integrated infrastructure complex (IIC) in Bargarh district, Odisha, valued at Rs 73.27 crores.
Further strengthening its portfolio, the company also received an order from the Ministry of External Affairs (MEA) for constructing residences at MEA’s plot in INA New Delhi, amounting to Rs 130 crore.\
NBCC’s Construction Triumph: Surge in Shares & Lucrative Contracts Unveiled:
NBCC Limited, formerly known as the National Buildings Construction Corporation, operates across three major segments: project management consultancy, real estate, and engineering procurement and construction.
The company’s robust performance is evident in its financial results for the fourth quarter ending March 31, 2024, with a notable 24.6% year-on-year increase in net profit,reaching Rs 141.5 crore compared to Rs 113.6 crore in the corresponding period of FY23.
Moreover, revenue from operations surged by an impressive 43% to Rs 4,025 crore from Rs 2,814 crore in the previous year. At the operational level, EBITDA rose to Rs 240.2 crore, up from Rs 104.5 crore in the fourth quarter of FY23, with the EBITDA margin expanding to 6%, compared to 3.7% in the same period last fiscal.
Conclusion:
As of 10:00 AM, NBCC’s stock was trading 7.46% higher at Rs 139.80 per share. In comparison, the BSE Sensex was trading 0.53% higher. Notably, the PSU’s stock is currently trading at a price-to-earnings valuation of 73.19 times, reflecting investor confidence in its growth trajectory.
Frequently Asked Questions FAQ:
1. What caused the surge in NBCC shares?
- NBCC shares surged by 8.4% following the announcement of securing 13 new construction orders totaling Rs 491 crores.
2. What are some notable projects NBCC will be undertaking?
- NBCC will be constructing a multifacility healthcare complex in Antop Hill, Mumbai, for the Central Government Health Scheme, among other projects.
3. How much is the healthcare complex project worth?
- The healthcare complex project in Antop Hill, Mumbai, is valued at Rs 112 crore.
4. What other significant contracts has NBCC secured?
- NBCC has also been awarded contracts for building an integrated infrastructure complex in Bargarh district, Odisha, and residences in INA, New Delhi, among others.
5. What is the financial performance of NBCC for the fourth quarter of FY24?
- NBCC reported a substantial 24.6% year-on-year increase in net profit, reaching Rs 141.5 crore for the fourth quarter of FY24.
6. How much has the revenue from operations increased?
- Revenue from operations surged by 43% to Rs 4,025 crore compared to the year-ago period.
7. What is the EBITDA margin for NBCC?
- The EBITDA margin expanded to 6%, with EBITDA rising to Rs 240.2 crore for the fourth quarter of FY24.
8. How is NBCC’s stock performing in the market?
- As of 10:00 AM, NBCC’s stock was trading 7.46% higher at Rs 139.80 per share, outperforming the BSE Sensex.
9. What is the price-to-earnings valuation of NBCC?
- NBCC’s stock is trading at a price-to-earnings valuation of 73.19 times.
10. What sector does NBCC operate in?
- NBCC operates in the construction sector, offering project management consultancy, real estate, and engineering procurement and construction services.
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