NBCC Shares Plunge 11.78%, Should You Buy After Bonus Allotment, Rs 1263 Cr Order?

Navaratna PSU NBCC (India) Ltd shares fell 2.40% on October 11 and fell 11.78% in last 3-months. The company allotted 90 crore fully paid-up bonus equity share of the face value of Re 1 each in the ratio of 1:2 on October 9, 2024. Last trading price of NBCC Shares on BSE on October 11 stood at Rs 114.10 per share. The company has a market capitalisation of Rs 30,807.00 crore.

NBCC Ltd shares gave shareholders eye-catching returns of 109% so far in 2024 and zoomed 172% in last 1-year. The company won several orders in last few days. NBCC also declared a dividend of Re 0.63 per share and shares traded ex-dividend on September 6, 2024. NBCC share has a PE of 55.83 and ROE of 17.20. Check key details below:

NBCC Shares Bags Several Orders: NBCC (India) Limited on Oct 11 informed bagging the following work: 1) Construction of permanent campus for JNV East Delhi, Delhi (U.T. of Delhi)-Additional Sanction of Rs 32.79 Crore (Approx.) 2) Construction of permanent campus for JNV, Distt, Shahdara (Delhi)(U.T. of Delhi)-Additional Sanction of Rs 32.36 Crore (Approx.).

Earlier, Hindustan Steelworks Construction Limited, a subsidiary of NBCC (India) Limited received order worth Rs. 1000 crore from campus development of Gondwana University, Gadchiroli, Maharashtra.

NBCC on Oct 10 received work order worth Rs 198 crore, 50 crore order from Odisha, and Rs 47 crore order on October 3, 2024.

Should You Buy NBCC Shares After Bonus Allotment, Order Win? According A R Ramachandran, Independent SEBI Research Analyst, "NBCC is sideways to bearish on the Daily charts with strong resistance at 119.8. A Daily close above this resistance could lead to target of 137 in the near term. Strong support will be at 110."

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 40.52 per share (as on 26/10/2023), respectively. NBCC (India) shares fell 2.67% in last 1-month, offered return of 453% in last 2-years, and gained 252% in last 3-years.

Why Shares Price fell 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.

NBCC Dividend In 2024: It set September 06, 2024 as the record date for final dividend of Rs. 0.63/- per paid up equity share of Rs. 1/-each (i.e.@ 63%).
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: It came into existence 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.