1:2 Bonus Share: Buy Navratna NBCC For Short Term TP Of Rs 220-250, Ex-Bonus Date Soon

Mid cap navaratna company NBCC (India) Ltd shares jumped 207% from its 52-week low price of Rs 56.71 per share that it hit on September 27, 2023. Last trading price of NBCC (India) shares on BSE is Rs 174.10 per share. The PSU on August 31, 2024 recommended 1:2 bonus share and fixed October 7, 2024 as the record date. The Navratna company has a market capitalisation of Rs 31,338.00 crore. It also declared a dividend of 63% and fixed September 6, 2024 as the record date. Life insurance corporation of India (LIC) has 5.96% stake in NBCC with 107,325,394 shares of the company. Check details below:

NBCC (India) Shares To Trade Ex-Bonus In October: As per the exchange 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 BSE filing added, "The Board has fixed Monday, October 07, 2024 as Record date to determine the eligibility of members to receive bonus shares. Other details are enclosed at Annexure-I."

NBCC Issues Record Date For Final Dividend: 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."

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 56.71 per share (as on 27/09/2023), respectively. NBCC (India) shares slipped over 5% in last 1-month, gained over 112% in 2024, jumped 193% in last 1-year, and offered return of 414% in last 2-years, also its highest return in last 5-years.

NBCC (India) Dividend Yield: NBCC (India) announced 15 dividends since August 30, 2012. In last 1-year, NBCC (India) announced an equity dividend amounting to Rs 0.63 per share. At the current share price of Rs 17 4.10, NBCC (India) offers a dividend yield is 0.36%.

NBCC (India) AGM: According to the regulatory filing, "It is hereby informed that the NBCC's 64th Annual General Meeting is scheduled to be held on Wednesday, September 25, 2024 at 12:00 Noon (IST) through "Video Conferencing (VC)/ Other Audio Visual Means (OAVM)."

How To Be Eligible For NBCC Bonus Share? Record date plays key role in declaring eligibility of shareholders for dividend and bonus share. Shareholders whose name appear in company's shareholders record as on the record date will become eligible to receive dividend income and bonus share. Record date is the specific day on which a company confirms the list of shareholders eligible for its dividend distribution and bonus shares. NBCC set October 7, 2024 as the record date for bonus share.

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? Brokerage firm Choice Broking said, "the stock has been consolidating in a range of Rs 172 to Rs 197. However, trading volumes have increased, signaling a potential breakout above the Rs 190 level. If this breakout occurs, the stock may have the potential to reach short-term targets of Rs 220 and Rs 250. However, on the downside, immediate support is located at Rs 170, which could be seen as a buying opportunity on dips. It is advisable to set a stop-loss (SL) at Rs 165."

Meanwhile, A R Ramachandran, Independent SEBI Research Analyst said, ""NBCC is bearish on the Daily charts with strong resistance at 183.4. A Daily close above this resistance could lead to target of 204 in the near term. Support will be at 169."

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 Choice Broking and 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.