Shares of NCC Ltd are witnessing a strong rally after securing a major redevelopment contract. As of March 24, the stock is trading at Rs 210.7, up 2.28% for the day. It opened at Rs 211.95, touched a high of Rs 215.95, and saw a low of Rs 206.05. This positive momentum follows the company’s announcement of receiving a Rs 1,480 crore order for the redevelopment of Darbhanga Medical College & Hospital in Bihar.
Why is NCC Stock Rising?
NCC has bagged a Rs 1,480 crore contract from Bihar Medical Services & Infrastructure Corporation Limited for the redevelopment of Darbhanga Medical College & Hospital. This comes just two weeks after securing another major order worth Rs 2,129 crore for infrastructure development in Andhra Pradesh. These consecutive contract wins have fueled investor confidence and driven the stock price higher.
Stock Rebounds Strongly in March
After a six-month decline that led to a 51% correction in its price, NCC has seen a sharp rebound of 21% in March alone. However, despite this recovery, the stock still trades 42% below its recent peak. The recent contract wins indicate strong business prospects, attracting more buyers to the stock.
Strong Order Book in 2025
Apart from the latest Rs 1,480 crore and Rs 2,129 crore orders, NCC has also secured other contracts earlier in 2025:
- January 2025: Rs 424.79 crore order (excluding GST)
- February 2025: Rs 218.82 crore order (excluding GST) These orders reflect NCC’s strong business pipeline, which is driving renewed interest among investors.
Market Performance and Technical Indicators
- Stock Movement: NCC ended at Rs 206.05 on March 22 and surged to Rs 214 today.
- Market Cap: Rs 12,936 crore.
- Trading Volume: 6.66 lakh shares changed hands on BSE, amounting to a turnover of Rs 13.55 crore.
- Technical Indicators: The relative strength index (RSI) is at 58.4, suggesting the stock is neither overbought nor oversold. The one-year beta of 1.9 indicates high volatility.
Jhunjhunwala Family Holding in NCC
The late investor Rakesh Jhunjhunwala’s wife, Rekha Jhunjhunwala, holds a 10.63% stake (6.67 crore shares) in NCC as of December 2024. This strong institutional holding adds credibility and trust in the company’s growth prospects.
Infrastructure Boom and NCC’s Growth
NCC is one of India’s largest and most diversified construction companies, operating in various segments, including:
- Buildings & Housing
- Roads & Bridges
- Water & Environment Projects
- Irrigation & Mining
- Railways & Power Transmission
With the Indian government’s focus on infrastructure development, companies like NCC are expected to benefit significantly. The steady flow of large contracts reinforces NCC’s leadership in the sector and strengthens its long-term growth outlook.
Conclusion
NCC’s stock is rallying due to strong order wins and positive investor sentiment. While the stock has rebounded 21% in March, it still has room to recover further. The company’s healthy order book, improving business outlook, and government-backed infrastructure push make NCC an interesting stock to watch in the coming months.
Disclaimer: This article is for informational purposes only. Investors are advised to conduct their own research or consult financial experts before making any investment decisions.