PSU Stock Jumps After Bagging Order Worth ₹369 Cr

NBCC‘s share price continued to make gains for the second straight session on Tuesday going up close to 4%.

What Happened: The construction firm in the after-market hours on Monday announced the securing of three significant work orders totalling ₹369.05 crore. The first project involves the construction of the Rani Lakshmi Bai Central Agricultural University campuses in Jhansi, Datia, Morena, Khajuraho, and Newar. The contract is worth around ₹331.9 crore.

Additionally, NBCC won a tender to construct a single-court complex and residential quarter in Boath, Adilabad district, Telangana, for ₹12.17 crore. The third project entails renovating and furnishing the ICAI Bhawan in Noida, Uttar Pradesh, awarded by the Institute of Chartered Accountants of India (ICAI). The contract is valued at around ₹25 crore.

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However, domestic brokerage firm Nuvama downgraded the stock’s rating to “hold” from “buy” with a price target of ₹140. As per the analysts, the recent run-up in NBCC’s share price leaves little room for more upside.

The PSU reported its earnings for the December quarter last week. NBCC reported a 60.2% year-on-year jump in net profit to ₹110.7 crore for the quarter ending December. Revenue from operations also increased by 13% to ₹2,412.6 crore.

Price Action: NBCC’s share price was up 3.36% to trade at ₹146.05 as the markets opened on Tuesday.

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