375% Return in 1 Year: Multibagger PSU hits 10% upper circuit on ₹36 crore-worth order; Buy or sell?

NBCC Share Price Today: Shares of NBCC (India) Ltd rallied over 10 per cent to hit a lifetime record-high mark during intra-day on Thursday, July 4, after securing a new order worth ₹36 crore from Patna, Bihar. The housing public sector undertaking (PSU) has delivered remarkable multi-bagger returns to investors over the last six months, one-year, three-year periods and so on.

Shares of the housing and construction major hit record-high after bagging a new order from the National Institute of Technology (NIT), Patna, to supervise construction and develop an incubation centre at the Bihar campus. NBCC said in a regulatory filing to the stock exchanges that the order is approximately   ₹36 crore and that ‘’the aforesaid work is in the normal course of business of the company''.

Also Read: NBCC shares jump over 8% after govt approves assistance for 3 crore more houses under PMAY

NBCC Q4 Results

The state-owned construction firm NBCC (India) Ltd reported a 24.6 per cent year-on-year (YoY) increase in net profit at ₹141.5 crore for the fourth quarter that ended March 31, 2024. In the corresponding quarter in FY23, NBCC posted a net profit of ₹113.6 crore. The revenue from operations jumped 43 per cent to ₹4,025 crore compared to ₹2,814 crore in the year-ago period.

At the operating level, the earnings before interest, tax, depreciation, and amortisation (EBITDA) climbed to ₹240.2 crore in the fourth quarter of this fiscal over ₹104.5 crore in the fourth quarter of FY23. The EBITDA margin stood at six per cent in the reporting quarter compared to 3.7 per cent in the corresponding period in the previous fiscal.

The board of directors had recommended a final dividend of ₹0.63 (0.63 per cent) per paid-up equity share of ₹1 each for FY24, subject to the approval of shareholders in the annual general meeting (AGM), as per the exchange filing.

For the fiscal year 2023-2024, net profit increased to ₹401.55 crore from ₹266.66 crore in the preceding year. The income from operations grew to ₹10,432.63 crore, up from ₹8,876.36 crore in the 2022–2023 fiscal year.

Also Read: Budget 2024: Infra thrust to push railways' capex by 76% in 5 years; IRCON, NBCC among top picks

NBCC Share Price Trend

On Thursday, shares of NBCC opened at ₹171.40 and gained over 10.85 per cent to hit a fresh 52-week high-mark of ₹190, before settling 10.38 per cent higher at ₹186.55 apiece on the BSE. The housing PSU commands a market capitalisation (mcap) of ₹33,579.00 crore, according to BSE data.

NBCC's share value has risen by 97 per cent in the last six months, nearly 270 per cent in the last year, and 383 per cent over the past two years. From its April 2020 low of ₹15.90 per share, the stock has skyrocketed 1,094 per cent to date.

According to Trendlyne data, NBCC has given better returns compared to Nifty 50 and Sensex in the last six months to three years and thereafter. In the past six month, the PSU stock gave multibagger 112.14 per cent returns against 12.94 per cent and 12.18 per cent returns by Nifty 50 and Sensex, respectively. In the last one year, NBCC gave massive 375.01 per cent returns against 25.77 per cent and 22.77 per cent returns by Nifty 50 and Sensex, respectively.

Established in 1960 as the construction arm of the Government of India, NBCC achieved 'Navratna' status in 2014. The PSU's core operations span three primary segments. These include project management consultancy (PMC), real estate development, and EPC contracting. The real estate segment includes residential projects like apartments and townships, along with commercial projects such as corporate office buildings and shopping malls.

Also Read: Multibagger NBCC share price climbs over 8% after company bags new orders worth ₹491 crore
 

Brokerages bullish on NBCC

According to domestic brokerage firm LKP Securities, NBCC has recently marked multiple swing high breakouts on the weekly chart, indicating a rise in optimism. This is complemented by consistent trading above the significant moving average, underlining its bullish stance. The positive crossover in the weekly RSI reinforces the short-term bullish momentum. In the immediate future, the stock is anticipated to maintain its positive trajectory.

Vaishali Parekh, Vice President - Technical Research of domestic brokerage Prabhudas Lilladher Pvt. Ltd said that NBCC has gained strength after the consolidation witnessed and a decent pullback to move past the significant 50EMA level. It has an improved bias to anticipate for further rise in the coming days.

Additionally, Amit Goel, Co-Founder & Chief Global Strategist, Pace 360, has recently selected NBCC (India) Ltd as one of the top infrastructure stock picks for traders ahead of the upcoming Union Budget 2024 in July.

Disclaimer: The views and recommendations provided in this analysis are those of individual analysts or broking companies, not Mint. We strongly advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and individual circumstances may vary.