Moneycontrol Bureau
Shares of National Buildings Construction Corporation (NBCC) saw buying interest on Wednesday after brokerage Nomura maintains buy rating on the stock with a target price of Rs 1,049. The stock gained as much as 3.3 percent intraday.
The stock gained 472 percent year-to-date (2014) on hopes of new housing and land development orders from the Narendra Modi-led government as the central government is going to build new cities.
Hence, Nomura feels land and housing redevelopment opportunity will drive strong earnings growth in the construction company and multiple triggers are in place to drive more than 34 percent revenue CAGR (compounded annual growth rate) over FY14-17F.
In the month of December, National Buildings Construction Corporation (on December 4) has signed memorandum of understanding with Air India for development of land parcels of the airline company at various locations on joint venture basis.
The company, on December 2, has secured PMC work for construction/improvement/maintenance of roads at Miao-Vijaynagar (Arunachal Pradesh) costing Rs 1850 crore
In the quarter ended September 2014, NBCC had reported a profit of Rs 60.67 crore, down from Rs 61.21 crore in same quarter last year due to higher expenses. During the same period, revenue from operations increased to Rs 904.3 crore from Rs 868.2 crore.
At 11:36 hours IST, the stock was quoting at Rs 878, up Rs 23.50, or 2.75 percent on the BSE.
Posted by Sunil Shankar Matkar
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