Rs 84,400 Crore Order Book: Civil Construction Company Signs MoU Worth Rs 3,500 Crore With Sarkari Awas Nirman Avam Vitt Nigam Ltd

The stock is up by 61.1 per cent from its 52-week low is Rs 56.43 per share.

NBCC (India) Limited has entered into a Memorandum of Understanding (MoU) with Sarkari Awas Nirman Avam Vitt Nigam Ltd. This agreement outlines a collaboration where Sarkari Awas Nirman Avam Vitt Nigam Ltd will award NBCC the responsibility of executing a mixed land use development project in Poorvi Vihar, Lucknow, spanning approximately 588 acres. NBCC will act as the Project Management Consultant for this endeavour.

Following the signing of the MoU, NBCC has been assigned the initial phase of the project, encompassing 50 acres of land. This phase involves acquiring possession of the land, ensuring it is free from encumbrances, and subsequently undertaking the planning, designing, and development of the site. The estimated value of this first phase is approximately Rs. 3,500 crores.

About the Company

NBCC (India) Limited, a prominent government-owned construction company under India's Ministry of Housing and Urban Affairs, offers a comprehensive suite of services across three key segments. Their project management consultancy (PMC) arm tackles civil construction projects for various sectors including residential, commercial, healthcare, and educational institutions. Additionally, they specialize in engineering, procurement, and construction (EPC) for complex structures like high-rise chimneys and cooling towers. Finally, NBCC (India) Limited is a major player in real estate development, building residential townships, apartments, commercial office spaces, and shopping malls.

According to the Quarterly Results, the net sales increased by 19.50 per cent to Rs 2,458.73 crore and the net profit increased by 53 per cent to Rs 124.88 crore in Q2FY25 over Q2FY24. In its half-yearly results, the net sales increased by 16 per cent to Rs 4,602.89 crore and the net profit increased by 46 per cent to Rs 232.09 crore in H1FY25 over H1FY24.

Furthermore, the shares of the company ex-traded bonus shares in the ratio 1:2 i.e., 1 new fully paid-up equity share of Re 1 each for every 2 existing fully paid-up equity shares of Re 1 each to the eligible members of the company as on record date. The ex-date for bonus shares was Monday, October 07, 2024.

The company's order book as of September 30, 2024, stands at Rs 84,400 crore. As of October 2024, the President of India owns a 61.75 per cent stake and the Life Insurance Corporation of India (LIC) owns a 5.11 per cent stake in the company. The stock is up by 61.1 per cent from its 52-week low is Rs 56.43 per share. Investors should keep an eye on this mid-cap stock. 

Disclaimer: The article is for informational purposes only and not investment advice.