NBCC stock fell for the sixth day in a row and was locked in a 10% drop zone.Here’s why

Shares of state-run construction company NBCC (India) continued their bearish trend for the sixth consecutive trading session and are currently locked in a 10% down zone. INR133.15 each in today’s session. This marks a six-day cumulative decline of 21%.

The decline can be attributed to profit taking, as the stock price has been on an upward trajectory from January 19th to February 2nd, achieving an incredible return of 93.5% in just two weeks, and the stock price soaring. INR87.20 per piece INR168.65.

Please also read: Mama Earth shares soar nearly 10% as third-quarter net income rose 264%

On February 1st and February 2nd, the stock price rose significantly by 10% and 19%, respectively. This surge was driven by the government’s focus on affordable housing in his 2024-2025 federal budget.

In terms of the company’s monthly performance, 10 of the past 11 months ended in positive territory, posting a return of 289%. The stock posted its best monthly performance in January, rising 59%, followed by July and November with returns of 16.6% and over 16%, respectively.

The company won eight new orders in January, on top of four orders received in December, according to the company’s exchange filings.

Please also read: PSU stocks rise: Market is ignoring big downside risks, says Kotak Equities

One particularly important order was from the National Cooperative Development Corporation (NCDC). The order includes the construction of 1,469 warehouses and other agricultural infrastructure, contributing to the world’s largest grain storage scheme in the cooperative sector. The total amount of this important order is INR150 billion.

Looking at the company’s financial situation, the company posted a consolidated net profit. INRSecond quarter net income of $820 billion; INR77 billion in the first quarter of FY24.Operating income is INR205.3 billion yen in the second quarter of FY2024, compared to INR191.8 billion in the first quarter of FY2024.

Please also read: SBI emerges as second company to outperform PSUs INRMarket capitalization 6 billion

Established in 1960 as the construction arm of the Government of India, NBCC achieved ‘Navratna’ status in 2014. Its core business spans three main divisions: Project Management Consulting (PMC), Real Estate Development, and EPC Contracting.

The real estate segment includes not only residential projects such as apartments and townships, but also commercial projects such as corporate office buildings and shopping malls.

Disclaimer: We recommend checking with a certified professional before making any investment decisions.