NBCC shares rise 5% after securing fresh orders worth over Rs 110 crore

Shares of NBCC India rose nearly 5% to a day’s high of Rs 118.30 on BSE during Monday’s trading session after the company announced receiving two large work orders worth a combined value of over Rs 110 crore on November 21.NBCC has announced that it has secured new work orders worth Rs 71.86 crore as part of its regular business activities. The first project involves providing Project Management Consultancy (PMC) services for the construction of a new campus for the Composite Regional Center (CRC) at Pudhupatti in Madurai, Tamil Nadu. This contract has been awarded by the National Institute for Empowerment of Persons with Multiple Disabilities (NIEPMD) and is valued at Rs 29.49 crore.

The company was also awarded a contract for the planning, design and implementation of the International Potato Center (CIP) in Agra, along with additional miscellaneous work for the National Horticulture Board. This project is worth Rs 42.37 crore.In addition, NBCC has secured a separate work order worth Rs 45.09 crore for construction of official buildings for Canara Bank’s regional/circle office building at Murma, Nagri Anchal in Ranchi, Jharkhand.

Stock performance and valuation

NBCC stock has shown strong performance over the past year, up about 32%. The company currently has a market capitalization of Rs 30,400 crore, reflecting its significant presence in the construction and real estate sectors. The stock is trading near its 52-week high of Rs 130.70, while its 52-week low was Rs 70.80, indicating relatively strong upside momentum over the year. Valuation metrics show that NBCC has a price-to-earnings (P/E) ratio of 50.67 and a price-to-book (P/B) ratio of 11.38, suggesting the stock is trading at a premium to its earnings and book value.

Technical outlook

From a technical perspective, the 14-day Relative Strength Index (RSI) stands at 49.1, indicating neutral market momentum. Typically, an RSI below 30 indicates a stock is oversold, while an RSI above 70 suggests the stock is overbought. In terms of moving averages, NBCC remains in a bullish trend, trading mainly on eight major Simple Moving Averages (SMA), ranging from the short-term 5-day SMA to the long-term 200-day SMA.

The combination of recent large order wins and strong technical positioning has positively impacted investor sentiment and contributed to the stock’s upward move seen during Monday’s trading session.

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