NBCC India shares rise 6% in early deals; here’s why

Shares of NBCC India rose over 6% in early deals today after the govt-owned civil construction firm said the company has accorded the in-principle approval for incorporation of a wholly owned subsidiary company in Dubai (UAE) subject to the approval of its administrative ministry i.e. Ministry of Housing and Urban Affairs (MoHUA). The Navratna PSU stock gained 6.20% to Rs 144.70 today. Shares of NBCC have zoomed 265.90% in a year and gained 123% in six months. However, the multibagger stock saw high volatility with a beta of 1.1 in the last one year.

In terms of technicals, the relative strength index (RSI) of the NBCC stock stands at 60.2, signaling it's trading neither in the overbought nor in the oversold zone. NBCC shares are trading higher than the 5 day, 10 day, 20 day, 50 day, 100 day, 150 day, 200 day moving averages.

In the current session, market cap of the firm rose to Rs 25,911 crore.

Total 15.20 lakh shares of the firm changed hands amounting to a turnover of Rs 21.44 crore on Monday. On April 23, the state owned construction firm said it has secured record new works of Rs 23,500 crore on consolidated basis and Rs. 18,400 Crore on standalone basis. This is compared to Rs 6,700 crore (Consolidated basis) and Rs. 4,225 Crore (standalone basis) in the preceding FY.

NBCC reported a 60.2% rise in consolidated net profit to Rs 110.7 crore in the third quarter of this fiscal against a profit of Rs 69.1 crore in the year-ago period. Revenue climbed 13% to Rs 2,412.6 crore during the December quarter of 2023-24 financial year from Rs 2135 crore in the corresponding period of the previous year.

NBCC (India) Limited provides value added services. The company operates through three segments: Project Management Consultancy (PMC), Real Estate Development, and Engineering Procurement and Construction (EPC). PMC segment is engaged in civil construction projects, infrastructure works for the national security, infrastructure projects for the civil sector, and project implementation for Pradhan Mantri Gram Sadak Yojna (PMGSY) and developmental work in Northeastern Region.