Navratna PSU company, NBCCC Ltd has continued its stellar order book position. In a latest development, NBCC has now bagged new orders worth Rs 368.75 crore for three different projects, indicating its robust pipeline. Accordingly, the stock price will be in focus next week. There is potential of more than 17% upside in NBCC stock ahead as brokerage HEMS Securities has recommended BUY for a target price of Rs 110.

NBCC Share Price:

The stock price closed at Rs 93.40 apiece on December 27th, up by 1.43% on BSE with a market cap of Rs 25,218.00 crore. The stock’s 52-week high and low are at Rs 139.90 apiece and Rs 52.69 apiece respectively. YTD, the stock has jumped by 71.3%.

In the year 2024 so far, NBCC has rewarded investors with bonus issues and a final dividend for FY24.

Bonus Issue: The company delivered a 1:2 bonus issue and its record date was on October 7, 2024.

Dividend: NBCC paid a final dividend of about Rs 0.63 per share for FY24, with a record date of September 2024. The dividend was the highest in four years, as NBCC paid final dividends of Rs 0.54, Rs 0.50, and Rs 0.47 for FY23, FY22, and FY21.

NBCC New Order:

As per the regulatory filing, on December 27, NBCC bagged orders worth Rs 368.75 crore.

Of the total, the majority of the order is Rs 300 crore for the development of Jawaharlal Nehru Commercial Complex (JLNCC) Englishya Lines, Varanasi (U.P) on a self-sustainable model.

Meanwhile, an order of Rs 44.37 crore is bagged for construction and furnishing of 500 bedded Multi -Storey “Vishram Sadan” at AIIMS Gorakhpur, U.P. Lastly, Rs 24.38 crore worth order is secured for construction of Mehta Family School of Data Science and Artificial Intelligence including internal EI, HVAC, Firefighting, Fire Alarm, Lifts, Audio Visual System, CCTV and BMS installation and development works at IIT Roorkee, Uttarakhand.

BUY NBCC Stock:

Brokerage HEMS Securities cited that NBCC management has guided for Rs 13000 crore revenue for FY25 and Rs 16000 crore for FY26. While the company aims to maintain a profit margin of 6%-7% in the future. Further, the management expects an order inflow of ₹1,00,000 crore in FY26. Also, the company is focusing on increasing its contribution from the real estate sales in the coming period.

NBCC shares have outperformed Nifty 500 and Nifty 50. As of 30th September 2024, the company’s total consolidated order book stands at Rs 84,400 crore with 55% in PMC and the remaining 45% in redevelopment projects.

HEMS’ note said, “The company is seeking opportunities in redevelopment projects, particularly those involving government colonies and stalled projects like Supertech,” adding, “They are also aiming for opportunities in hospital and education infrastructure and are planning to partner with institutions like AIIMS (All India Institute of Medical Sciences), NIFT (National Institute of Fashion Technology) and various state & central universities.”

That being said, on valuation, HEMS note said, “We believe, the company will continue to post robust numbers in the upcoming quarters on the back of rising demand led by real estate and infrastructure activities,” We give a “BUY” rating on the stock and value the stock at 40x of FY26E earnings to arrive at a target price of Rs. 110.”