Multibagger Navratna stock rises 288% from 52-week low; price targets, technicals, stop loss and more

Shares of multibagger NBCC India have risen almost 300% in a year and more than doubled in 2024, leaving investors guessing what lies ahead for the Navratna PSU stock. The Navratna stock climbed over 288% from its 52 week low in a year. NBCC stock was trading on a flat note at Rs 182.75 on Wednesday against the previous close of Rs 183.95 on BSE.

Despite a stellar rally in the last one year, the multibagger stock saw a high volatility with a beta of 1.5 during the period. In terms of technicals, the relative strength index (RSI) of the Navratna firm’s stock stands at 55.2, 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, and 200 day moving averages.

Market cap of the firm fell to Rs 32,904 crore. Total 5.73 lakh shares of the firm changed hands amounting to a turnover of Rs 10.49 crore in the current session.

The stock has delivered multibagger returns of 284% in a year and gained 444% in two years.

 NBCC stock hit a record high of Rs 198.25 on July 9, 2024 and a 52 week low of Rs 47.51 on August 22, 2023.  

Kushal Gandhi, Technical Analyst, StoxBox is bullish on the stock and expects it to reach Rs 217 mark in the near term.

"NBCC's price action recently experienced a bullish breakout from a cup and handle pattern, signaling a potential trend reversal. Following the breakout, the price retested the demand zone near Rs 169 levels and continues to exhibit signs of accumulation. The stock demonstrates strong buyers’ demand, EPS, and price strength and presents a low-risk, high-reward opportunity. Therefore, we suggest buying NBCC at the current market price with a target of Rs 217 and maintaining a stop loss at Rs 170," said Gandhi.

Brokerage Motilal Oswal has a buy call on the NBCC stock with a price target of Rs 205.

Another brokerage Nuvama Institutional Equities expects the stock to hit price target of Rs 198 in a year. It has maitinaned hold call on the stock and raised its price target from Rs 144.

Nuvama said NBCC reported a revenue of about Rs 2,140 crore in Q1FY25, up 12 per cent YoY. Ebitda margin came in at 4.3 per cent, up 150 bps YoY, which lifted adjusted PAT by 47 per cent YoY to about Rs 100 crore. The management has guided for Rs 13,000 crore in revenue and 5.5–6 per cent EBITDA margins for FY25. Order wins remained strong at Rs 19,800 crore in Q1FY25; the company was awarded projects worth Rs 3,700 crore during the quarter.

"Improvement in order intake, execution and margins along with traction in real estate monetisation impel us to increase the target P/E to 50 times from 40 times earlier. Maintain ‘HOLD’ with a target price of Rs 198 from Rs 144, as we roll over the valuation to Q1FY27E," Nuvama said.

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.