NBCC (India) Ltd shares experienced a steep decline today, dropping nearly 5.07% to a last trading price of Rs 97.35, despite the company securing fresh orders worth Rs 1322.48 crore. Over the past year, NBCC shares have delivered attractive returns of 112% and 78% in 2024, but have faced recent challenges, slipping 13.63% in the past week and 21% over the last three months. In contrast, they have surged 351% over the past two years and 212% over three years.
The recent orders from HSCC (India) Limited, a wholly-owned subsidiary of NBCC, include a Rs 642.69 crore project to expand an ESIC medical college and hospital in Faridabad and a Rs 679.79 crore project for a new 500-bedded ESIC hospital in Manesar, Haryana.
Earlier this year, LIC, which holds a 5.11% stake in NBCC, recommended a 1:2 bonus share issuance with a record date of October 7, along with a dividend of Rs 0.63 per share, with an ex-dividend date set for September 6, 2024.
Despite these developments, analysts have noted that the stock is currently bearish on daily charts, with strong resistance at Rs 110.3. A close above this level could lead to a target of Rs 124, while strong support is seen at Rs 101.
In terms of shareholding, FII/FPI holdings decreased from 4.43% to 4.11% in the September 2024 quarter, though the number of FII/FPI investors rose from 155 to 173. Mutual fund holdings increased from 3.04% to 3.45%, with the number of mutual fund schemes growing from 13 to 18.
Overall, while NBCC has shown substantial gains over the longer term, the recent drop in share price raises questions about immediate investor sentiment. The upcoming developments, including the bonus shares and dividend, will be crucial to watch. What are your thoughts on the implications of these recent trends for NBCC’s future?
Disclaimer: This communication is for informational purposes only and does not constitute financial advice, investment recommendations, or an offer to buy or sell any securities. Past performance is not indicative of future results. Investors should conduct their own research and consult with a qualified financial advisor before making any investment decisions. The information presented herein may be subject to change without notice, and the author assumes no responsibility for any errors or omissions.
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