NBCC rallies nearly 5% on Rs 338 cr order win

MUMBAI: Shares of National Buildings Construction Corporation ( NBCC) gained momentum in weak market after the company bagged order from IIT Kanpur.

NBCC will undertake "construction works such as engineering core lab, research complex (Phase-I) and retrofitting of aerospace Engineering block multistoried building for Rs 337.97 crore."

The stock has been in a strong uptrend and rallied massive 320 per cent year-to-date on hopes of revival in economy and fresh construction orders from the new government.

Last month Nomura initiated coverage on the stock with a ‘Buy’ recommendation. According to the brokerage, the company is fast emerging as a strong play on large redevelopment opportunities from government bodies and other PSUs.

"NBCC also enjoys negative working capital (and a cash-rich balance sheet) and passes on risks to subvendors on back-to-back contracts, thus remaining asset light. We initiate with at Buy with a target price of Rs 1,049," the Nomura report said.

At 10:40 a.m.; the stock was at Rs 657.60, up 3.45 per cent, on the BSE. It surged 4.8 per cent to touch intraday high of Rs 666.60.