Shares of NBCC (India) surged over 4% on October 7 as the stock traded ex-bonus. The day also marks the record date for identifying shareholders eligible for the bonus shares. NBCC (India) share price were trading 4.1% higher at Rs 117.32 on the NSE.

NBCC Bonus Issue Details

NBCC had previously announced a bonus issue in a 1:2 ratio, meaning shareholders will receive one new fully paid-up equity share of Re 1 for every two existing shares held. The company will issue a total of 90 crore bonus equity shares, which will be drawn from its free reserves created from profits available as of March 31, 2024, as per a regulatory filing.

Also Read

NBCC’s reserves and surplus available for capitalisation stood at Rs 1,959 crore as of March 31, 2024. The bonus shares are expected to be credited within two months of the Board’s approval, by October 31, 2024.

Stock Performance

In the past 12 months, NBCC shares have risen by 103%, more than doubling investors’ capital. In comparison, the Nifty has posted a gain of around 28% during the same period. So far this year, the stock has gained 43%, outperforming the Nifty’s 15% return over the same period.

Brokerage Views

Nuvama remains bullish on NBCC’s future growth prospects. The brokerage highlights improvements in order intake, execution, and margins, along with solid progress in real estate monetisation as key growth drivers for the PSU.

Also Read

NBCC’s strong order book of Rs 81,300 crore and a book-to-bill ratio of 7.6x underpin its potential for continued growth. According to Nuvama’s report last month, the company’s year-to-date order inflows are at Rs 19,800 crore, compared to Rs 23,500 crore in FY24.

Nuvama also noted that the ongoing realty cycle is providing better opportunities for NBCC, with numerous PSUs and government bodies seeking to monetise surplus land holdings. This trend, coupled with NBCC’s strong financial position, contributes to the brokerage’s positive outlook for the company.

(Disclaimer: Views, recommendations, opinions expressed are personal and do not reflect the official position or policy of Financial Express Online. Readers are advised to consult qualified financial advisors before making any investment decisions. Reproducing this content without permission is prohibited.)