Shares of NCC Limited (NSE:NCCL) made a 1-month high of INR 214 on Monday, March 24, after the company secured an INR 1,480.34 crore contract for the redevelopment of Darbhanga Medical (TASE:BLWV) College and Hospital in Bihar.
In a filing, NCC announced that it had received a Letter of Acceptance (LoA) from Bihar Medical Services and Infrastructure Corporation, marking a significant project win. The contract involves extensive redevelopment work, with a 42-month timeline for completion. Additionally, the Defect Liability Period (DLP) will extend for 36 months post-completion, during which NCC will be responsible for rectifying any construction-related issues.
A Major Order for NCC
Under NCC’s internal classification, any contract exceeding INR 1,000 crore (excluding GST) is deemed a “major order.” The latest win strengthens NCC’s portfolio in the infrastructure and healthcare sectors, reinforcing its position as a leading construction company in India.
The company has been attracting investor interest, especially as its shareholder base includes Rekha Jhunjhunwala, wife of late investor Rakesh Jhunjhunwala, who holds a 10.63% stake (6.67 crore shares) in NCC as of the December 2024 quarter.
Valuation Insights: Should Investors Buy NCC?
While NCC’s recent order win is a strong growth indicator, investors must assess the stock’s valuation before making investment decisions. According to InvestingPro’s Fair Value feature, the fair value of NCC stands at INR 265 per share, suggesting a 26.9% upside potential from its current market price (CMP) of INR 208.9.
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InvestingPro’s Fair Value tool is a powerful feature that helps investors analyze stocks based on multiple financial models, ensuring they make data-driven decisions. By providing a realistic valuation status—whether a stock is overvalued or undervalued—InvestingPro enables investors to navigate market opportunities with confidence.
Currently, InvestingPro is offering discounts of up to 45%, making this an excellent opportunity for investors to access premium stock insights at a reduced cost.
With its robust order pipeline and a promising valuation outlook, NCC remains a stock worth tracking in the infrastructure space.
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