NCC Limited Stocks in Focus, Secures ₹1,480.34 Crore Redevelopment Project

Shares of NCC Limited are likely to garner investor attention following the company's announcement of securing a substantial contract for the redevelopment of Darbhanga Medical College & Hospital at Laheriasarai, Darbhanga. The infrastructure player stated that it has received a Letter of Acceptance (LoA) from Bihar Medical Services & Infrastructure Corporation Limited for the project, valued at ₹1,480.34 crore, excluding Goods and Services Tax (GST).

According to NCC's internal policy on the materiality of events, orders valued at ₹1,000 crore and above (excluding GST) are classified as 'major orders'. This contract, therefore, represents a significant addition to the company's order book and is expected to positively influence investor sentiment.

The company informed the stock exchanges about the receipt of the LoA, dated 21st March 2025, in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. NCC Limited operates in the infrastructure sector, with activities spanning the construction of industrial and commercial buildings, housing projects, roads, bridges, flyovers, water supply and environment projects, mining, power transmission lines, irrigation, hydrothermal power projects, and real estate development.

The contract for the redevelopment of the medical college includes the construction of hospital structures and other essential infrastructure, with the main construction work estimated to be completed within 42 months. A Defect Liability Period (DLP) of 36 months will follow the completion of construction, during which the contractor remains responsible for rectifying any issues or defects.

Market reaction to the news was evident in the trading session on Friday, with NCC's stock closing 2.26% higher at ₹206.05 on the Bombay Stock Exchange (BSE), against the previous close of ₹201.50. The market capitalisation of the firm stood at ₹12,936 crore. Trading volume on Friday saw 6.66 lakh shares of NCC change hands on the BSE, amounting to a turnover of ₹13.55 crore.

Despite this recent positive movement, an analysis of NCC's share price history reveals a mixed performance over different timeframes. Over the past year, the stock has witnessed a decline of 13.15%, and year-to-date, it has fallen by 25.73%. The price has also dropped by 34.57% in the last six months and 28.27% over the past three months. However, in the last month, the stock has shown signs of recovery, recording an increase of 10.25%.

Notably, as of the quarter ended December 2024, Rekha Jhunjhunwala, the wife of the late investor Rakesh Jhunjhunwala, held a significant stake in NCC, owning 10.63% or 6.67 crore shares of the company.

The acquisition of this major order is a noteworthy development for NCC and will likely be a key factor influencing the stock's performance in the near term. Market participants will be observing the company's progress on this and other projects as indicators of future growth.

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