NBCC India is a Government of India owned enterprise that provides services in the civil engineering sector. It is publicly listed. It was previously known as National Buildings Construction Corporation Limited.
As of the first week of September 2018, the market capitalisation of NBCC India was about Rs.12,600 crore.
NBCC India Limited’s Wealth and Recent Performance
From the annual report released by the company for the financial year 2017–2018, we can see the following on a standalone basis:
- Revenue from operations increased steadily from the FY14 to the FY17. In FY17, the revenue from operations was Rs.6,279 crore. In the FY18, the revenue from operations was Rs.5,905 crore.
- Net worth of the company has increased steadily from FY14 to FY18. In FY14, the company’s net worth was Rs.1,127 crore and in the FY17, the net worth of the company was Rs.1,674 crore. This then increased to Rs.1,821 crore in the FY18.
- Profit before tax of the company has increased from FY14 to FY18. In FY17, the profit before tax was Rs.488 crore. This then increased to Rs.503 crore in the FY18.
- Net worth of the company has continued to increase over the years. In the FY17, the net worth of the company was Rs.1,673.60 crore and in FY18, it increased to Rs.1,812.37 crore.
- Reserves and surplus grew from Rs.1,493.60 crore in FY17 to Rs.1,641.37 crore in FY18.
NBCC India Limited Stock Trends in 2018
- In January 2018, the stock opened trading at a price of about Rs.123. There was a minor spike in the price over the course of the first week. From the second week, the stock began a gradual decline in price. This decline lasted till the end of the month. The final price for the month was about Rs.112. While this was not a steep decrease in the price, it is a noticeable decrease in the price.
- In February 2018, the stock was trading at about Rs.114. The stock declined in price over the first week of the month. While the stock appeared to gain again in price over the next week, it dropped again. The stock did not regain the higher price for the rest of the month. The final price was about Rs.98.
- The stock did not gain much in price over March 2018. The final price for the month was about Rs.95. An interim 28% dividend was announced on 15 March 2018.
- The price of the stock rose again in April and remained steady past the first week. A 2:1 split was announced on 25 April 2018. The final price for the month of April was about Rs.104.
- The price of the stock remained steady over the first week of May but declined later. The final price for the month was about Rs.92.
- June marked a period of even further decline in the stock price. The stock declined in the first week, held steady for the second week and declined again in the third and fourth weeks. The final price for the month was about Rs.74.
- The price declined further in July 2018 with a low of about Rs.61. The stock rose in price over the last week of the month and closed at about Rs.70 at the end of the month.
- The price held steady in the Rs.70 range for the entirety of August 2018 and the stock closed for the month at about Rs.72.
NBCC India Limited Trends in 2016 and 2017
- In January 2016, the stock began trading at about Rs.65. The stock held steady at that price for about two weeks that month and then declined in price. The lowest price for the month was about Rs.58. The stock then increased in price to close for the month at about Rs.64. The stock declined in price for the first two weeks of February 2016 but rallied in the last week. The final price for the month was about Rs.57. In March 2016, the price of the stock rose steadily and the stock closed at a price of about Rs.62 at the end of the month.
- The stock rose minimally over the month of April 2016 and closed at a price of about Rs.66 at the end of the month. This was not that big a rise compared to the closing price at the end of the previous month. The stock held steady for most of May 2016 and closed at a price of about Rs.63. A 10:2 split was announced on 2 June 2016. The stock did not gain much during this month. The final price of the stock at the end of the month was about Rs.63.
- The stock showed a tremendous gain during the first two weeks of July 2016. The stock then held steady over the other two weeks to close at a price of about Rs.82 at the end of the month. The stock declined a bit in price over the month of August 2016. The final price for the month was about Rs.80. The stock increased a little over the month of September 2016 with the stock closing at about Rs.83 at the end of the month. A final 20% dividend was announced on 8 September 2016.
- The stock declined throughout October 2016 to close at about Rs.80 at the end of the month. The stock declined further in November 2016, with the final price for the month being about Rs.76. The price remained largely steady through December 2016 and the final price for the month was about Rs.79.
- In January 2017, the stock began trading at about Rs.84. The price of the stock rose through the month. The final price of the share at the close of the month was about Rs.90. The stock rose in price over the first two weeks of February 2017 but declined after that. A bonus with a ratio of 1:2 was announced on 17 February 2017. The final price for the month was about Rs.84. The price rose a little over the month of March 2017 and the final price at the end of the month was about Rs.86. An interim 27% dividend was announced on 29 March 2017.
- The price of the stock rose steadily over the course of April 2017. The final price for the month was about Rs.99. The stock closed at about Rs.98 at the end of May after gaining in price over the last week of the month following a major decline over the third week. The stock rose minimally in the month of June to close at about Rs.101 at the end of the month.
- The stock rose only around three rupees by the end of the month of July 2017. The lacklustre performance continued in the month of August 2017 with the final price for the month being about Rs.102. The stock did not increase by much in September 2017. The final price for the month was about Rs.106. A final 55% dividend was announced on 7 September 2017.
- October 2017 marked the first real increase in the price of the shares of the company. The final price for the month of October was about Rs.130 which was a solid increase from the price the share closed at at the end of the previous month. The stock rose a little in November 2017 but declined again to close for the month at about Rs.131. The stock declined throughout December 2017 to close at about Rs.123.
Should You Invest in NBCC India Limited?
The following are some of the reasons why NBCC India could be considered a good investment:
- It is owned by the Government of India.
- It has shown excellent performance from 2004.
- The company has been designated a Navratna company from 2014. This indicates good performance on the part of the company.
- The company has three distinct divisions and thus there is no overlap of their work.
- There are at least eight projects that the company has in development around the country.
- The company has an international presence.
- There are two projects in Mauritius and one in the Maldives.
- The company has a contract to work with nine African countries.
- The company’s CAGR has increased by over 21% over ten years.
- The company almost doubled its income from FY13 to FY18.
While these can be considered good reasons to invest in the company, it would be best to do so after performing adequate personal research based on personal financial commitments and risk appetites.
The company is a Navratna Enterprise and it comes under the purview of the Ministry of Housing and Urban Affairs. The company has an order book exceeding Rs.80,000 crore as of March 2018. The company holds an ISO 9001:2008 certification. This was awarded by the Bureau of Indian Standards with respect to Project Management and Consultancy. The company currently operates three segments—Project Management Consultancy, Real Estate Development, and EPC Contracting. The project management consultancy portion of its business focuses on taking up and implementing or executing new projects that are landmark projects in their respective sectors. This division also takes up government work with respect to redevelopment. The real estate business division develops both residential and commercial projects for government use and for the common public. The EPC contracting division is focused on constructing chimneys and cooling towers for the use of companies operating in the power or energy sector.
History of the Company
The company was initially known as National Buildings Construction Corporation Limited. The real estate part of the company was established in the year 1988. That part of the company mainly deals with commercial real estate projects. The company has a number of subsidiaries such as:
- NBCC Services Limited (NSL)
- NBCC Engineering and Consultancy Limited (NECL)
- Real Estate Development and Construction Corporation of Rajasthan Limited (REDCCL)
- NBCC Environment Engineering Limited (NEEL)
- NBCC International Limited
- NBCC Gulf LLC
- Hindustan Steelworks Construction Limited (HSCL)
The company began operating overseas initially in the year 1977. Some of the various locations where NBCC operates are - Mauritius, Maldives, Turkey, Botswana, and Oman.
In the year 2012, the company made sustainability one of the main features of its projects. The various sustainability measures that are employed by the company are - ensuring zero waste, having dual piping, ensuring rainwater harvesting is possible, harvesting solar energy, deploying smart electricity metering, and making use of LED and other energy efficient light sources.
The company’s incorporation date is 15 November 1960. The public issue date for the company is 22 March 2012.
Management of the Company
The board of directors of the company includes the following individuals:
- Dr. Anoop Kumar Mittal - Chairman and Managing Director
- Shri Rajendra Chaudhari - Director (Commercial)
- Shri N K Shah - Director (Projects)
- Shri Manoj Kumar - Government Nominee Director
- Smt. Jhanja Tripathy
- Shri Ashok Khurana
- Major General Tajuddin Moulali Mhaisale
- Shri C. Subba Reddy
- Shri C. R. Raju
- Shri Rajendrasinh G. Rana
- Shri Sairam Mocherla
The senior officers of the company include the following individuals:
- Shri S D Sharma - Senior Executive Director
- Shri N P Aggarwal - Senior Executive Director
- Shri P K Seth - Executive Director
- Smt B.K. Sokhey - Executive Director
- Shri Rakesh Gupta - Executive Director
- Shri H S Yadav - Executive Director
- Shri H K Dhawan - Executive Director
- Shri V K Sharma - Executive Director
- Shri Yogesh J P Sharma - Executive Director
- Shri R.K.Aggarwal - Executive Director
- Shri Alok Rastogi - Executive Director
- Shri M C Sharma - Executive Director
- Shri Rajendra Wanchoo - Executive Director
Dr. Anoop Kumar Mittal who serves as Chairman and Managing Director of the company joined the organisation in the year 1985. He was appointed to his current position in the year 2013. In his present role, he oversees policy and strategy for NBCC. He holds a bachelor’s degree in civil engineering. He was awarded a Doctorate of Philosophy by Singhania University in Rajasthan.
NBCC India Limited Listings in NSE, BSE, and Other Indices
The company is listed under the following codes on the BSE and the NSE:
- BSE: 534309
- NSE: NBCCEQ
- SECT: Construction
- IND: Construction and Contracting
- ISIN Code: INE095N01031
The following indices include the company in their list:
- Nifty 200
- Nifty Full Midcap 100
- Nifty LargeMidcap 250
- Nifty Midcap 150
- Nifty SmallMidcap 400
- S&P BSE 150 MidCap Index
- S&P BSE 250 LargeMidCap Index
- S&P BSE 500
- S&P BSE Bharat 22 Index
- S&P BSE CPSE
- S&P BSE Industrials
- S&P BSE MidCap
- S&P BSE PSU
- Nifty 500
- Nifty Infrastructure
- Nifty Midcap 100
- Nifty Midcap 50
- Nifty PSE
- S&P BSE 200
- S&P BSE 400 MidSmallCap Index
- S&P BSE AllCap
- S&P BSE Capital Goods
- S&P BSE India Infrastructure
- S&P BSE LargeMidCap
- S&P BSE MidSmallCap
In addition to being listed on the BSE and the NSE, the company is also listed on MCX Stock Exchange.
The Executive Director for Business Development can be reached at the following address:
NBCC India Limited, NBCC Bhawan, Lodhi Road, New Delhi - 110 003, India
Telephone number: 011 2436 7314 - 17, 2436 7573
Fax: 011 2436 6995
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