NBCC Share CMP Rs.50: A Debt-Free Company with a New Order of 66 Crores

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NBCC Share is one of the leading public sector enterprises in India, engaged in the business of construction and real estate development. The company was incorporated in 1960 as a wholly owned Government of India enterprise under the administrative control of the Ministry of Works and Housing. The company was conferred the status of Navratna by the Government of India in 2012, which signifies its operational excellence and financial autonomy. The company has a vision to be a global leader in sustainable infrastructure development and a mission to deliver high-quality projects and services to its clients and stakeholders.

NBCC Share has recently received a new order of 66 crores for designing and executing the redevelopment of Indraprastha Bhawan in New Delhi. This is positive news for the company, which is trading at around Rs 50 in the stock market and has a debt-free balance sheet. In this article, we will discuss the current status of NBCC Share, its past performance, and its future prospects.

NBCC Share: Current Status

NBCC Share, formerly known as National Buildings Construction Corporation Ltd, is a blue-chip Government of India Navratna Enterprise under the Ministry of Housing and Urban Affairs. The company’s present areas of operations are categorized into three main segments, i.e. Project Management Consultancy (PMC), Real Estate Development, and EPC Contracting.

As of August 30, 2023, NBCC Share was trading at Rs 51.6, with a marginal increase of 0.5% from the previous close. The company has a market capitalization of Rs 91,530 crores and an earnings per share (EPS) of Rs 1.71. The company has a price-to-earnings (PE) ratio of 26.48 and a price-to-book (PB) ratio of 4.49. The company has a dividend yield of 1.06% and a return on equity (ROE) of 10.55%. The company has a cash reserve of Rs 2,350.02 crores and no debt on its books.

NBCC Share: Past Performance

NBCC Share has witnessed a significant decline in its share price over the past five years. The share price has fallen by -32.97% from Rs 76.85 on August 25, 2018, to Rs 51.6 on August 30, 2023. The company’s earnings have also declined by -12.23% per year over the past five years. The company has faced challenges due to the slowdown in the real estate sector, the impact of the COVID-19 pandemic, and the legal issues related to the Amrapali projects.

However, the company has shown signs of recovery in recent quarters. The company’s earnings have grown by 90.7% over the past year, from Rs 394.62 crores in FY20 to Rs 752.59 crores in FY21. The company’s revenue has also increased by 12.11% over the past year, from Rs 6,808.79 crores in FY20 to Rs 7,632.24 crores in FY21. The company has maintained its profitability and efficiency ratios, with an EBITDA margin of 9.32%, a net profit margin of 3.93%, and a return on capital employed (ROCE) of 17.74%.

NBCC Share: Future Prospects

NBCC Share has a strong order book of Rs 77,000 crores as of June 30, 2023. The company has recently received a new order of Rs 66 crores for designing and executing the redevelopment of Indraprastha Bhawan in New Delhi. The company is also working on several prestigious projects such as Pragati Maidan Redevelopment, Nauroji Nagar Redevelopment, East Kidwai Nagar Redevelopment, AIIMS Redevelopment, and various Smart City projects across India.

The company is expected to benefit from the government’s initiatives to boost the infrastructure and housing sectors in India. The company is also exploring opportunities in overseas markets such as Maldives, Mauritius, Nepal, Sri Lanka, Oman, and Saudi Arabia. The company aims to achieve a revenue growth of 25-30% per year for the next three years.

Conclusion

NBCC Share is a debt-free company with a strong order book and a diversified business portfolio. The company has shown resilience in the challenging times and has delivered improved performance in the recent quarters. The company has the potential to grow further with its execution capabilities and strategic vision.

If you are interested in investing in NBCC Share or any other stock or security, you should do your own research before making any decision. You can use Bing / Google search engine to find more information about NBCC Share or any other topic that you want to learn more about.

Disclaimer: This article is for informational purposes only and does not constitute any investment advice or recommendation. Investors should do their own research before investing in any stock or security.


Keywords: NBCC Share, NBCC Share new order, NBCC Share debt-free company, NBCC Share future prospects, NBCC Share stock market performance

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