National Building Construction Corporation (NBCC) India shares may get some push after it bagged the government’s project to redevelop General Pool Residential Accommodation (GPRA) colonies in Delhi, including Sarojini Nagar, Netaji Nagar, Nauroji Nagar. These colonies are part of 7 housing projects that government has approved to redevelop. Share price of NBCC (India) Ltd was trading 11.49 per cent up at Rs 217.30 at 9.50 am on Thursday.
The other company Central Public Works Department (CPWD) will redevelop Kasturba Nagar, Thyagraj Nagar, Srinivaspuri and Mohammadpur colonies. The objective is to reduce the shortage of government houses in Delhi by doubling the existing housing units from 12,970 units to 25,667 at a total cost of Rs 32,835 crores.
Public-listed firm NBCC share price surged 10 times to Rs 194.90 till July 5, 2016 from Rs 19.41 on April 12, 2012, the day when the government firm was listed on bourses. Chandan Taparia, equity analyst, Anand Rathi Financial Securities said, “NBCC shares can surge 10 per cent in the short run after the announcement.”
The state-owned construction firm on Tuesday also signed an MoU with Gremound Engineering, a Hungarian company for partnership in introducing new construction technology in India for implementation of mass housing projects in the country.
NBCC bagged projects worth Rs 587.47 crore in June. In May, the company had secured business worth Rs 1,900.79 crore in May.
For the quarter ended March 31, 2016, NBCC reported a net profit of Rs 141.48 crore, up 5.87 per cent, against Rs 133.64 crore in the corresponding quarter a year ago.
The company reported a growth of 11.80 per cent in a consolidated net profit at Rs 311.13 crore for the financial year ended March 2016 against Rs 278.28 crore last year. NBCC registered bottomline figures of Rs 257.45 crore in FY14.
Reliance Securities in a report on June 21 said, “NBCC’s unique business model accredits its leadership in construction (PMC) space with an order backlog of over Rs 37,000 crore. The company expects PMC margins to improve from FY17E on account for economies of scale and expects top-line / bottom-line CAGR of 30 per cent /25 per cent over next five years.” The brokerage house has ‘Buy’ rating on NBCC shares with a target price of Rs 240.
NBCC, under the administrative control of Ministry of Urban Development, is present in three main segments — Project Management Consultancy (PMC), Real Estate Development and EPC Contracting.