Multibagger NBCC share price rises 4.5% as it collaborates with MTNL for ₹1600 crore project. Buy, Sell or Hold?

Stock Market Today: Multibagger NBCC (India) Ltd share price gained 4.5% in morning trades on Thursday. The gains for NBCC share price were led by its announcement regarding a collaboration with Mahanagar Telephone Nigam Limited (MTNL) for ₹1600 Crore project.

The NBCC (India) share price opened at ₹177.65 on the BSE on Thursday , more than 1% higher than previous close of ₹175.75. The NBCC share price thereafter gained to intraday highs of ₹183.70 marking gains of 4.5%.

The NBCC share price has gained 121% year to date and 232% over last one year giving Multibagger returns to the investors.

Project order details

NBCC on Wednesday post market hours had announced that a Memorandum of Understanding (MoU) has been signed between NBCC (India) Limited and Mahanagar Telephone Nigam Limited (MTNL) on September 11, 2024 to collaborate to develop a prominent land parcel of MTNL measuring approximately 13.88 acres located on Pankha Road, New Delhi. The project is valued at Rs. 1,600 crores approximately.

Rising orderbook and opportunities add to outlook

The regular order inflows are adding to the order book of NBCC earlier known as National Buildings Construction Corporation Ltd. The strong order inflows and expected monetization keeps analysts positive on prospects of NBCC (India) share prices.

With a strong order book of ₹813 billion (book-to-bill at approximately 7.6 times), strong order accretion with year-to-year order wins at ₹198 billion (adding to order wins of ₹235 billion in FY24), and improving real estate monetisation (realty monetisation at the Nauroji Nagar project was ₹134 billion versus its expected realisation of ₹125 billion), NBCC (India) is well-positioned for growth, said analysts at Nuvama Institutional Equities.

The company is benefiting from better prospects as a result of a thriving real estate cycle, as many PSUs and the government entities are trying to monetise their excess land holdings.

Positive developments for the business include increased order intake, execution, and profitability as well as traction in real estate monetisation all bode well for NBCC.

Nuvama target price for NBCC share price stands at ₹198,

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