- NBCC (India) share price jumped over 4 percent on Wednesday, May 29, following the release of the company’s strong quarterly results for the period ending in March 2024.
- The state-owned construction company reported a 24.6 percent year-on-year increase in net profit, reaching ₹141.5 crore, and a 43 percent year-on-year surge in revenue from operations, totaling ₹4,025 crore for the reviewed quarter.
- Vaishali Parekh from Prabhudas Lilladher advises investors to purchase the stock, aiming for a potential target of ₹159, with a stop loss set at ₹124.
NBCC (India) shares surge over 4% on strong quarterly results, outperforming the market.
NBCC’s Impressive Quarterly Performance
NBCC (India) Ltd. has reported robust financial results for the quarter ending March 2024. The company’s net profit saw a significant increase of 24.6 percent year-on-year, amounting to ₹141.5 crore. Additionally, the revenue from operations surged by 43 percent year-on-year, reaching ₹4,025 crore. This impressive performance has led to a notable rise in the company’s share price, which jumped over 4 percent on May 29, closing at ₹142 per share.
Operational Efficiency and EBITDA Growth
At the operational level, NBCC’s EBITDA rose to ₹240.2 crore in the fourth quarter of FY24, compared to ₹104.5 crore in the same period of FY23. The EBITDA margin improved to 6 percent from 3.7 percent in the previous fiscal’s corresponding quarter. This improvement in operational efficiency has been a key driver of the company’s financial success.
Market Performance and Investor Sentiment
NBCC shares opened 4.17 percent higher at ₹144.80 per share on Wednesday. The stock has surged approximately 72 percent this year, significantly outperforming the benchmark Nifty 50, which has risen nearly 5 percent during the same period. Over the last year, NBCC stock has yielded returns of over 233.33 percent, reflecting strong investor confidence and positive market sentiment.
Dividend Announcement and Future Outlook
The board of directors of NBCC has proposed a final dividend of ₹0.63 (0.63 percent) per paid-up equity share of Re 1 each for the fiscal year 2024. This proposal is pending approval by shareholders at the upcoming annual general meeting. If approved, the dividend will be distributed within 30 days following the AGM. This dividend announcement further enhances the attractiveness of NBCC shares to investors.
Conclusion
NBCC (India) Ltd. has demonstrated strong financial performance and operational efficiency in the latest quarter, leading to a significant rise in its share price. With a robust market performance, positive investor sentiment, and a proposed dividend, the company is well-positioned for future growth. Investors are advised to consider NBCC shares as a promising investment opportunity, with potential for continued upward momentum.
