Shares of NBCC India rallied over 6% to hit a fresh 52-week high in intraday trade on Wednesday after the state-owned company secured an order worth ₹2,000 crore from Kerala State Housing Board. The company, which under the Indian Ministry of Housing and Urban Affairs, has inked a pact with the Kerala State Housing Board for the development of 17.9 acres of land parcel at Kochi's Marine Drive.

Boosted by the development, NBCC shares gained 6.5% to hit an intraday high of ₹63.65 on the BSE. Early today, the stock opened higher for the last eight straight sessions at ₹61.60, against the previous closing price of ₹59.78. On the volume front, there was a surge in buying activities as nearly 43 lakh shares changed hands over the counter compared to two-week average of 23.66 lakh stocks. The market capitalisation increased to ₹10,980 crore.

The share price of NBCC has been gaining for the past eight sessions and climbed 30% during the same period. The PSU stock has more than doubled after it hit its 52-week low of ₹29.85 on September 30, 2022. In the calendar year 2023, the counter rose 50%, whereas it added 70% in six months and 27% in a month.

In an exchange filing on Tuesday, NBCC India, formerly known as National Buildings Construction Corporation, said that it has “signed a memorandum of understanding (MoU) with Kerala State Housing Board for the development of 17.9 acres of land parcel of Kerala State Housing Board at Marine Drive, Kochi, Kerala”.

The contract covers “development / redevelopment on self-sustainable basis-project management and marketing consultancy”.

The timeline for the completion of the project is yet to be decided, while the value of the contract is around ₹2,000 crore, the company says in the filing.

Earlier this week, NBCC won an order worth ₹20 crore from the government for renovation and construction at Mint, Mumbai. The project includes planning, designing, and execution of structural and non-structural repairs at Mint, Mumbai factory premises along with renovation works and the construction of a transit camp at Mint colony, Parel, Mumbai.

In Q1FY24, NBCC India, which is engaged in project management consultancy (PMC) and real estate businesses,  posted a consolidated net profit of ₹77.41 crore as compared to net loss of ₹4.84 crore in the year-ago period. Total income rose to ₹1,965.80 crore during April-June quarter of FY24, from ₹1,853.24 crore in the same period last year. As per the company, it generated 94.6% of its business revenue from PMC segment and redevelopment works.

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