NCC Share Price Jumps 6% on ₹10,805 Crore BSNL Order – Should You Buy?
NCC Ltd shares surged over 6% in early trading on Wednesday following the announcement of a major order win worth ₹10,805 crore from Bharat Sanchar Nigam Limited (BSNL). The news has sparked investor enthusiasm, pushing the stock price higher as market participants react positively to the development.
The company’s Share Price Movement
The company’s share price opened at ₹215.20 on the Bombay Stock Exchange (BSE) on Wednesday, reflecting a gain of over 5% from its previous close of ₹204.45. The momentum continued as the stock touched an intraday high of ₹217.55, marking an increase of more than 6% in morning trade.
This rally was driven by investor optimism following the company’s announcement of two large-scale projects secured from BSNL post-market hours on Tuesday.
The company’s Major Order Win from BSNL
On Tuesday, The company disclosed that it had received two Advance Work Orders from BSNL, dated March 25, 2025. These orders pertain to the design, supply, construction, installation, upgradation, operation, and maintenance of BharatNet’s middle-mile network in the Uttarakhand Telecom Circle and Madhya Pradesh, DNH & DD Telecom Circles.
Breakdown of the BSNL Order:
1. Madhya Pradesh Contract
- Total Order Value: ₹2,647.12 crore (excluding GST)
- Capex (Capital Expenditure): ₹1,543.35 crore
- Opex (Operating Expenses): ₹1,103.77 crore
2. Madhya Pradesh, DNH & DD Telecom Circles Contract
- Total Order Value: ₹8,157.44 crore (excluding GST)
- Capex: ₹4,189.05 crore
- Opex: ₹3,968.39 crore
This significant order win has further strengthened NCC’s order book, reinforcing its position in the infrastructure and telecom sectors.
Other Major Orders Secured by NCC
NCC has been consistently bagging large infrastructure contracts, adding to its growth trajectory. Some of the recent key projects include:
- Redevelopment of Darbhanga Medical College & Hospital (Bihar)
- Awarded by: Bihar Medical Services & Infrastructure Corporation Limited
- Date: March 21, 2025
- Contract Value: ₹1,480.34 crore (excluding GST)
- Infrastructure Development in Amaravati Capital City (Andhra Pradesh)
- Awarded by: Andhra Pradesh Capital Region Development Authority
- Date: March 19, 2025
- Contract Value: ₹2,129.60 crore (excluding GST)
These orders highlight NCC’s strong execution capabilities and increasing presence in India’s growing infrastructure sector.
The company’s Financial Performance & Key Ratios
| Metric | Value |
|---|---|
| Market Cap | ₹14,500 crore |
| Stock Price (Latest) | ₹217.55 |
| 52-Week High | ₹230.80 |
| 52-Week Low | ₹98.40 |
| P/E Ratio | 14.5x |
| ROE (Return on Equity) | 12.8% |
| Debt-to-Equity Ratio | 0.54 |
| EPS (Earnings Per Share) | ₹15.10 |
| Order Book Value | ₹60,000+ crore |
Should You Buy The company’s Shares?
With a strong order book, improving financials, and steady revenue visibility, NCC appears to be a solid bet for long-term investors. The recent BSNL order win further strengthens its growth potential. However, investors should also consider the following:
Reasons to Invest:
Strong order inflows ensure revenue visibility Presence in key infrastructure and telecom sectors Consistently improving financial performance Reasonable valuation compared to industry peers
Risks to Consider:
Execution risks associated with large infrastructure projects Regulatory challenges in the telecom sector Fluctuations in raw material costs affecting margins
Conclusion
The recent surge in The company’s share price reflects investor confidence in the company’s ability to execute large-scale projects efficiently. The ₹10,805 crore BSNL order win, coupled with other recent contract acquisitions, adds to The company’s revenue visibility and growth prospects. For investors looking for an infrastructure stock with strong fundamentals and steady growth, the company remains an attractive option.
Frequently Asked Questions (FAQs)
1. Why did The company share price rise today?
NCC shares surged over 6% following the announcement of a ₹10,805 crore order from BSNL, boosting investor confidence.
2. What is the impact of the BSNL order on The company’s business?
The BSNL order significantly enhances The company’s order book and revenue visibility, reinforcing its growth prospects in the infrastructure and telecom sectors.
3. What other major projects has The company recently won?
The company secured a ₹1,480 crore hospital redevelopment project in Bihar and a ₹2,129 crore infrastructure project in Andhra Pradesh.
4. Is The company a good investment for the long term?
Given its strong order book, improving financials, and reasonable valuation, The company appears to be a solid long-term investment. However, investors should consider potential execution and regulatory risks.
5. What is the P/E ratio of The company?
The company’s price-to-earnings (P/E) ratio stands at 14.5x, making it reasonably valued compared to industry peers.
Would you invest in The company after this order win? Share your thoughts in the comments!
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Disclaimer: This blog post is for informational purposes only and should not be considered financial advice. Investors should conduct thorough research and consult with a qualified financial advisor before making any investment decisions.