1:1 Bonus Share In Few Days: NBCC Bags Rs 101 Cr Order, Shares Gain 119% YTD; Buy?

Navaratna company NBCC (India) Ltd shares today settled with the rally of 1.13% on BSE after the company bagged yet another order worth Rs 101.00 crore from National Highways Authority of India (NHAI). The order is pertaining to Project Management Consultant (PMC) for "Construction of Permanent office building in respect of Regional Offices (ROs) cum Project Implementation Units (PIUs) of National Highways Authority of India." Meanwhile, last trading price of NBCC shares on BSE is Rs 179.40 per share. The company's market capitalisation stood at Rs 32,292.00 crore. NBCC (India) shares offered return of 206% in last 1-year. It is worth mentioning here that NBCC shares will trade ex-bonus on October 7, 2024.

The company on August 31, 2024 recommended 1:1 bonus share implying shareholders will be eligible to receive one bonus share for ever one share held as on the record date. The company also recommended Re 0.63/share dividend and ex-dividend date was fixed as September 6, 2024. Check details below:

NBCC (India) Previous Orders In September: As per the exchange filing of NBCC (India) dated September 26, 2024, this is to inform that NBCC (India) Limited has recently been awarded Rs 75 crore order from Indian Institute of Information Technology (IIIT) for Project Management Consultant (PMC) for Construction & development of various infrastructure works at IIIT Nagpur to be undertaken under EPC mode.
Previously, Supreme Court decided to review a proposal by NBCC to complete 17 stalled projects of Supertech Limited. The decision could positively affect 27,000 homebuyers.
Earlier this month, NBCC informed that its subsidiary HSCC (India) Ltd bagged order worth Rs 1261 crore from Health Ministry for the establishment work of AIIMS (Bihar).
NBCC (India) Shares Set To Go Ex-Bonus In October: As per the BSE filing of NBCC (India) 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 set Monday, October 07, 2024 as record date to determine the eligibility of members to receive bonus shares.
NBCC (India) Shares Performance: The 52-week high price of NBCC (India) shares on BSE is Rs 209.75 per share (as on 28/08/2024) and 52-week low price is Rs 56.86 per share (as on 04/10/2023), respectively. NBCC (India) shares slipped 3.73% in last 1-month, rose 119% year-to-date, surged 483% in last 2-years, and rallied 414% in last 5-years.
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."
When NBCC Will Credit Bonus Shares To Shareholders Account? In order to qualify for bonus shares, traders must be existing shareholders of the company before the record date and ex-date. NBCC fixed October 7, 2024 as the record date. Shareholders must buy NBCC shares before October 7, 2024. Meanwhile, ex-date is ideally one day before the record date. Companies generally declare timeline for bonus share allotment in advance. The bonus shares will then be credited to the accounts of shareholders after the Board of Directors give approval to the issues. The procedure of allotting bonus share ideally takes nearly 10 to 15 days.
Shareholding: FII/FPI have 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, according to Trendlyne.
Should You Buy NBCC Shares? As per A R Ramachandran, Independent SEBI Research Analyst said, ""NBCC is bearish on the Daily charts with strong resistance at 180.5. A Daily close below support of 168 could lead to target of 150 in the near term."
Meanwhile, another brokerage firm Geojit, as per September 20, 2024 report, recommended hold call for NBCC shares with target price of Rs 189 per share for a target period of 12 month. According to the analyst, "though the long term outlook is positive, the rich valuation limits the upside potential. Therefore, we maintain HOLD rating and value NBCC's core business at a P/E of 51x on FY26E EPS & Rs.5/ share for land parcels held with a TP of Rs.189."

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 and Geojit. 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.