NBCC, HUDCO share prices rise up to 9% as they sign MOU for ₹600 crore project

Stock Market Today: NBCC India Ltd and Housing & Urban Development Corporation (HUDCO) saw their share prices rise up to 9% in morning trades on Thursday: The two companies announced signing MOU for ₹600 crore project in NOIDA, Delhi NCR

Share price movement

Housing & Urban Development Corporation (HUDCO) share price opened at ₹223.40 on the BSE on Thursday, only slightly higher than the previous closing price of ₹220.60. The Housing & Urban Development Corporation or HUDCO share price thereafter gained to touch intraday highs of ₹240.50 marking gains of up to 9%

NBCC India Ltd share price also opened at ₹97.43 on the BSE on Tuesday, almost 2% higher than previous close of ₹95.70. NBCC share price too thereafter gained to scale highs of ₹100.49, also marking gains of 5% during intraday trades.

Multibagger returns

HUDCO and NBCC share prices though have corrected from their highs in line with the corrections seen in the markets, nevertheless are up 118-183% in a year, given Multibagger returns to investors.

Project details

Housing and Urban Development Corporation Limited (HUDCO) and NBCC (India) Limited on Wednesday post market hours announced signing a Memorandum of Understanding (MoU) on 27th November, 2024 at New Delhi for development of a land parcel of 10 acres, owned by HUDCO at NOIDA. HUDCO, on the said land, intends to create an Institutional complex with world class amenities which is likely to have 8.71 Lakh sq ft. of built-up area with a mix of office space, studio apartments, conference space and retail & common facilities. NBCC will undertake the execution of the said project with the scope of Concept-to-Commissioning.

HUDCO , NBCC Analyst views and prospects

Both HUDCO and NBCC have been adding to the projects in progress

HUDCO remains a A ‘Conviction BUY’ for Prabhudas Lilladher. Shweta Daptardar, Vice President Equity Research said that FY25 and 26 earnings estimates for HUDCO have already been upped by 7% and 3% respectively, factoring in write-backs led by accelerated bad asset resolutions. Q2 reinforced our confidence in robust business trajectory as sanctions pipeline strengthened. This with steady margin visibility and favorable asset quality should translate into healthy earnings trajectory (23% Earnings per share or EPS CAGR and 15% for Return on Equity in FY24-27 Estimates).

Meanwhile NBCC also has received an order for Upgradation of Primary school Hostel (PSH) under State Sector Scheme at various location in the state of Odisha. The award for projects worth ₹318 crore remains positive for the revenue visibility. The order book as per a recent investor presentation already stood at ₹84,400 crore for NBCC.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment