NCC Share Price in Focus: Stock Jumps 5% on Rs 2,090.5 Crore Bihar Project, Still Down 22% in 2025; BUY/SELL?

NCC Limited's share price is in focus today after the company announced the receipt of a major infrastructure order worth Rs. 2,090.5 crore from the Water Resources Department, Bihar. The project involves the construction of the Barnar Reservoir Scheme in the Jamui district, including dam structures, irrigation channels, and allied works.

NCC Share Price Today

On Tuesday morning, NCC shares opened at Rs. 222 apiece, rising 4.7% from the previous close, after the company announced a major order win from the Bihar Water Resources Department. At the time of writing, the NCC share price was trading at Rs. 216.16, up 1.91% for the day. Over the past five days, the stock has gained 3.86%, while it is up 17.15% in the last six months. However, on a year-to-date basis, NCC shares remain down 22.18%, and over the past year, the stock has declined by 30.54%.

Details of the Order

According to the company's regulatory filing on September 15, the project has a construction timeline of 30 months, along with a defect liability period (DLP) of 60 months. The order value stands at Rs. 2,090.5 crore (excluding GST). This project is expected to strengthen NCC's presence in the water resources and irrigation infrastructure segment.

NCC clarified that the order is a domestic contract awarded by the Bihar Water Resources Department and does not fall under related party transactions. The promoter and group companies also have no interest in the awarding entity, ensuring full compliance with regulatory norms.

NCC Stock Analysis and Target Price Ahead

NCC has come into focus after winning a Rs. 2,090.5 crore order for the Barnar Reservoir project in Bihar. This big-ticket project comes at a time when infrastructure companies are gaining from higher government spending on water management, irrigation, and dam projects. Analysts believe such large-scale contracts will boost order book visibility and support revenue stability in the medium term.

However, brokerages have mixed views on the stock. Centrum Institutional Equities, in its recent report, maintained a Reduce rating on NCC shares with a target price of Rs. 232, implying only about a 2% upside.

Centrum said "NCC reported just 5% revenue growth in FY25, compared to earlier expectations of 15% growth, mainly due to delays in approvals and payments from authorities. As a result, we cut NCC's earnings per share (EPS) estimates by 6% each for FY26 and FY27, valuing the company at 13x FY27 EPS to arrive at the revised target price of Rs. 232 (down from Rs. 247)."

On the other hand, ICICI Securities has taken a more optimistic view, highlighting NCC's strong order book of Rs. 701 billion, with a book-to-bill ratio of 3.7x trailing twelve-month revenue, one of the highest in the industry.

The brokerage noted, "NCC has already secured Rs. 65 billion worth of orders in FY26 year-to-date against its guidance of Rs. 220 billion in order inflows for the full year. With a robust order pipeline of Rs. 2.5 trillion." ICICI expects NCC to comfortably achieve its targets.

That said, execution challenges remain. In Q1 FY26, NCC's performance was weak, with revenue at Rs. 44 billion, down 7% YoY; EBITDA at Rs. 4 billion, down 10% YoY; and PAT at Rs. 1.9 billion, dropped by 5% YoY. ICICI noted that about Rs. 200 billion worth of orders (30% of the total order book) are in the mobilisation stage and are expected to start execution from H2 FY26. With this, the brokerage estimates at least 15% revenue growth in the remainder of FY26 with margins around 9% and expects an earnings CAGR of 15% over FY25-27E.

ICICI Securities has maintained a Buy rating with a target price of Rs. 262.

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