1:2 Ex-Bonus, Re 0.63 Dividend: Multibagger NBCC Shares Rally, Buy/Sell? Check Fresh TP

Navaratna PSU NBCC (India) Ltd shares today jumped over 2% in trade on BSE as the shares traded ex-bonus in the ratio of 1:2. Current market price of NBCC shares on BSE is Rs 114.40 per share with gain of 1.46% at the time of writing the story. NBCC shares witnessed decline of 4.60% in last 1-week and over 9% in last 3-months. The company received multiple orders in October and September. NBCC also recommended Re 0.63/share dividend and shares traded ex-dividend on September 6, 2024. Check details below:

What Is Ex Date and Record Date? The ex-bonus date is the day when a stock begins to trade sans the advantage of corporate action. The ex-date and record date for all corporate actions remain on the similar day as all the instruments are shifted to the T+1 settlement cycle.

Meanwhile, record date is the day when the firm checks the records to figure out the eligible shareholders for a corporate action. Shareholders holding the company's shares in their respective demat accounts on the record date will become eligible for corporate actions like the entitlement of stock splits, bonus shares, and dividends, among others.

NBCC (India) Shares Trades Ex-Bonus: As per the BSE filing dated August 31, 2024, "Board of Directors has recommended the issuance of Bonus Shares to the Shareholders of the Company in the ratio of 1:2 i.e. 1 (One) new fully paid-up Equity Share of Re 1/- (Rupee One Only) each for every 2 (Two) existing fully paidup Equity Share of Re 1/- (Rupee One Only) each to the eligible members of the Company as on Record Date, subject to the approval of the Shareholders in the forthcoming Annual General Meeting."

The Board fixed October 07, 2024 as record date.

Why Shares Price Come Down On Ex-Bonus Date? The average price of stock comes down soon after the credit of the bonus shares to the demat account as the bonus shares are credited without any cost. The holding average is calculated with the method of First in First Out (FIFO). Because bonus shares are free of cost, their buy price is considered as zero.

The average price, or buy average price, of a stock is reduced after the credit of bonus shares to the account because the bonus shares are credited at no cost, and the holding average is calculated using the First In First Out (FIFO) method. As bonus shares are free, their buy price is considered zero.

Should You Buy NBCC Shares? According A R Ramachandran, Independent SEBI Research Analyst, "NBCC is bearish on the Daily charts with strong resistance at 120. A Daily close below support of 115 could lead to target of 108 in the near term."

NBCC (India) Shares Performance: The 52-week high price of NBCC (India) shares on BSE is Rs 139.90 per share (as on 28/08/2024) and 52-week low price is Rs 38.42 per share (as on 06/10/2023), respectively. NBCC has a market capitalization of Rs 30,726.00 crore. NBCC (India) shares surged 23% in last 6-months, rose 109% year-to-date, and zoomed 180% in last 1-year. In last 2-years, NBCC gave shareholders stellar returns of 434%.

NBCC Dividend In 2024: The exchange filing of NBCC (India) dated August 24, 2024 stated, "The Company has fixed Friday, September 06, 2024 as the Record Date for determining shareholders eligible to receive final dividend of Rs. 0.63/- per paid up equity share of Rs. 1/-each (i.e.@ 63%) for the FY 2023-24 subject to the approval of Shareholders at the 64th AGM of the shareholders."

Shareholding: FII/FPI increased holdings from 4.33% to 4.43% in June 2024 quarter. Number of FII/FPI investors increased from 119 to 155 in June 2024 quarter. Mutual Funds have increased holdings from 2.98% to 3.04% in June 2024 quarter. Number of MF schemes increased from 10 to 13 in June 2024 quarter. Life insurance corporation of India (LIC) holds 5.96% stake in NBCC as of June 2024 quarter, according to Trendlyne.

About: Founded in 1960 as a Government of India Civil Engineering Enterprise, NBCC with its Headquarter in Delhi, today, holds the status of Navratna CPSE, and has emerged as the undisputed leader in the Construction Sector on the back of its capabilities, innovative approach, adherence to highest standard of quality, timely delivery and a dedicated workforce.

Disclaimer:

The stock has been picked from the brokerage report of A R Ramachandran. Greynium Information Technologies, the Author, and the respective Brokerage House are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to check with certified experts before taking any investment decision.