NBCC (India) Ltd: A Multibagger PSU Stock Set to Turn Ex-Bonus Today

NBCC (India) Ltd: A Multibagger PSU Stock Set to Turn Ex-Bonus Today

In the dynamic world of stock trading, certain stocks consistently capture investor attention. One such stock is **NBCC (India) Ltd**, a public sector undertaking (PSU) that has recently garnered buzz due to its impending bonus issue. As of today, the shares will officially turn ex-bonus, marking a significant milestone for both the company and its shareholders.

Key Details of the Bonus Issue

Today is the record date for determining which shareholders are eligible to receive bonus shares. NBCC has announced a **bonus share issuance in a ratio of 1:2**, meaning that for every two existing fully paid-up shares, shareholders will receive one additional fully paid-up share of Re 1 each. This generous distribution is made possible through the company’s reserves, which stood at an impressive **Rs 1,959 crore** as of March 31, 2024.

The total number of bonus shares set to be issued is **90 crore**, and shareholders can expect these new shares to be credited within two months from the board's approval date, specifically by **October 31, 2024**.

Stellar Performance in 2024

NBCC shares have demonstrated remarkable growth, boasting an increase of **109% in 2024 alone** and a staggering **192% rise over the past year**. This surge can be attributed to several key factors, including:

- Improved Order Intake: The company has seen a positive trend in order intake, which is critical for long-term growth.

- Execution and Margins: Enhanced execution capabilities and better margins have further strengthened the company's financial standing.

- Real Estate Monetization: With the buoyant realty cycle, many PSUs and government entities are seeking to monetize surplus land holdings, creating ample opportunities for NBCC.

 Recent Order Wins

In addition to its impressive performance, NBCC has recently announced several notable order wins, which include:

- A **Rs 47 crore contract** for the SIDBI Vashi redevelopment project.

- Operations and maintenance works at the **International Craft Complex in New Delhi**.

- A consultancy order valued at **Rs 101 crore** for the construction of a permanent office building for the National Highways Authority of India.

These contracts not only bolster the company’s order book but also highlight its expanding influence in the infrastructure sector.

Robust Order Book

Currently, NBCC boasts a **robust order book of Rs 81,300 crore**, with a book-to-bill ratio of **7.6 times**. This metric indicates that the company is well-positioned for sustained growth, especially with year-to-date order wins totaling **Rs 19,800 crore** against **Rs 23,500 crore** for the entire fiscal year 2024. The company’s optimistic outlook is underpinned by strong order accretion and an increasingly favorable real estate market.

Conclusion

As NBCC (India) Ltd prepares to turn ex-bonus today, its impressive stock performance and growth prospects present a compelling case for investors. With a strategic focus on expanding its order book and capitalizing on real estate opportunities, NBCC is a stock worth watching.

As always, while the prospects appear bright, it’s crucial for investors to conduct thorough research or consult with a financial advisor before making any investment decisions.

Stay tuned for more updates on the stock market and investment opportunities!

Reference from:-https://www.businesstoday.in/markets/stocks/story/nbcc-india-shares-multibagger-psu-stock-to-turn-ex-bonus-today-key-details-448955-2024-10-07