NBCC (India) Ltd Share Price will trade ex-bonus, marking a significant event for investors. The company is set to issue a total of 90 crore bonus shares in a 1:2 ratio, meaning that shareholders will receive one new fully paid-up equity share for every two existing shares they hold. This announcement has generated considerable interest, as the stock has shown impressive performance over the past year.
NBCC’s share price surged by over 4% on the morning of October 7, reaching Rs 117.32 on the National Stock Exchange (NSE). This increase is part of a broader trend, as the stock has appreciated by 43% year-to-date and an astonishing 103% in the last twelve months. In comparison, the Nifty index has only gained about 15% and 28%, respectively, during these periods.
The bonus shares are being issued from the company’s free reserves, which amounted to Rs 1,959 crore as per its audited financial statements for the year ending March 31, 2024. The company plans to credit these bonus shares to eligible shareholders within two months from approval, with a target date of October 31, 2024.
NBCC Share Price Investor Insights
Investors are keenly watching this development due to NBCC’s robust order book of Rs 81,300 crore and a book-to-bill ratio of 7.6x. According to analysts at Nuvama, the company’s strong order inflow and improved real estate monetization prospects contribute positively to its outlook. Year-to-date order wins have reached Rs 19,800 crore, compared to Rs 23,500 crore for the entire fiscal year 2024.
Recent contract wins include a Rs 47 crore redevelopment project for SIDBI in Vashi and a consultancy order worth Rs 101 crore for constructing a permanent office building for the National Highways Authority of India. Such projects highlight NBCC’s active role in public sector undertakings and government initiatives.
NBCC Share Price Market Performance
The overall market sentiment surrounding NBCC remains bullish. The stock has not only outperformed its peers but also demonstrated resilience amid fluctuating market conditions. Analysts attribute this growth to several factors:
- Strong Order Intake: The company has been successful in securing significant contracts.
- Real Estate Opportunities: A buoyant realty cycle is providing new avenues for growth.
- Government Projects: Increased focus on infrastructure development by the government is beneficial for NBCC.
As of October 7, investors who held shares before this date will be eligible for the bonus issue. For instance, if an investor owned 500 shares, they would receive an additional 250 bonus shares.
