NCC shares jump over 6% on bagging orders from BSNL

Shares of NCC surged over 6% in opening trade on Wednesday after the infrastructure company secured work orders worth ₹10,804.60 crore from Bharat Sanchar Nigam Ltd (BSNL). This major win adds to the company's recent streak, which includes two other notable contracts obtained this month. Earlier this month, NCC bagged ₹1,480.34 crore from Bihar Medical Services & Infrastructure Corporation Limited (BMSICL), and ₹2,129.60 crore from Andhra Pradesh Capital Region Development Authority.

Cheering the news, NCC share price opened 5.2% higher at ₹215.2 on the BSE, after ending 2.1% lower at ₹204.45 in the previous session. Extending opening gains, the stock gained as much as 6.4% to hit a high of ₹217.55, while the market capitalisation climbed to ₹13,675 crore in the first hour of trade so far. Meanwhile, the equity benchmarks Sensex and Nifty were down marginally by 0.1%.

At the current level, NCC shares are up 28% from its 52-week low of ₹169.95 touched on March 3, 2025, while it is down 40% from its 52-week high level of ₹364.50 hit on July 31, 2024.

In an exchange filing last evening, NCC said the company received two advance work orders from BSNL for Uttarakhand telecom circle and Madhya Pradesh, Dadra & Nagar Haveli, and Daman & Diu telecom circles. The contract value of Uttarakhand telecom circle is ₹2,647.12 crore and that of Madhya Pradesh, Dadra & Nagar Haveli, and Daman & Diu telecom circles are ₹8,157.44 crore. Both projects have a three-year construction period and a 10-year maintenance period.

The contract pertains to design, supply, construction, installation, upgradation, operation and maintenance of middle mile network of Bharatnet.

Robust order book to drive revenue growth

As of December 31, 2024, NCC’s order book stood at ₹55,548 crore across various segments, providing revenue visibility for the next 2-3 years. Apart from this, the company has a bidding pipeline of ₹2.45 lakh crore across all segments and states, according to a report by Axis Securities.

For FY25, the company expects an order inflow of ₹20,000-22,000 crore across all segments. As of 9M FY25, the order inflow stood at ₹13,600 crore, with the company being L1 in projects worth ₹8,000-10,000 Cr, which it expects to materialise by Q4 FY25, the brokerage said in a recent report.

NCC has a diversified business portfolio spread across T&D (19%), buildings (38%), transportation (19%), water & railways (10%), irrigation (9%), and mining (5%). It currently has two smart meter projects in Bihar and Maharashtra worth ₹7,800 crore. In Q3 FY25, NCC secured a river interlinking project, an ambitious initiative by the Government of India, and expects more orders from this segment.

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