Key BSE Small Cap Stocks: NBCC Share Overview

NBCC is a leading Government-owned organization that is engaged in construction, engineering, and other infrastructure-based development projects. Being a public-owned institute, the organization has maintained a strong footing in India’s infrastructural growth trajectory. With a strong order book, ongoing infrastructure development projects, and positive fundamentals, NBCC has become a part of the BSE Smallcap Index. With this recent inclusion, the market sentiment towards the stock has become positive with more investors tracking its price movement. Following is an overview of the NBCC stock price that can help investors make sound decisions regarding investment:

1. Key businesses of NBCC

The organization works through three main segments which are project management, real estate development, and engineering and consultancy. It is engaged in the development of infrastructural projects like bridges, dams, and other structures essential for India’s growth. Moreover, it also indulges in commercial and residential real estate development projects. With construction, the firm also offers engineering, consultancy, and other services to its clients. 

2. Strong growth in sales and profits:

NBCC has a strong book of sales and profits which has been increasing every quarter. The company even recorded a stellar 53% increase in its total profits serving as a sign of better management, future growth potential, and ongoing orders and projects in its hand. Urban development, affordable housing, and smart city development are some projects that the company has been working on with strong margins. An increase in profits, a 17.2 % increase in sales over the past 3 years, and a 13.6% increase in ROE are the key aspects of NBCC and its share price.

3. NBCC share price movement:

Currently trading at ₹94.58, the NBCC share price has been on a growth trajectory in recent years. Moreover, the company’s share price has increased by more than 109% in a single year offering exponential returns to the investors. Also, with a CAGR of 52.6% in the last 3 years, the NBCC share price has grown tremendously as compared to the BSE small cap index. A solid balance sheet profit and loss statement and strong support from the government through infrastructural development projects are the main indicators behind the increase in the NBCC share price.

4. Technical and fundamental aspects:

According to technical indicators, the NBCC share price has been within its bullish zone and will continue with its upward movement. Moreover, with a strong outlook both on fundamental and technical aspects, the share serves as a great choice for long-term investment by investors. Despite trading at a lower price than it’s all-time of ₹139, the stock price can surely attain the same if the economic factors remain stable. 

Conclusion:

NBCC is a part of the small-cap base index and can serve as a great choice for investment for long-term investors. With numerous positive indicators like sales and profit growth, NBCC’s share price can grow substantially and offer great returns to investors. Being a great contributor to India’s growth plan and strong support from the government through construction projects, NBCC and its share price will surely stay in the positive bracket. Investors must however carefully examine the stock and its share price before investment.

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