NCC Ltd., an infrastructure development company, has secured significant contracts worth ₹10,804.60 crore from Bharat Sanchar Nigam Limited (BSNL) for its BharatNet project, marking a crucial milestone that bodes well for the company's market performance.
On March 26, 2025, shares of NCC surged over 6% after the company announced it received two advance work orders from BSNL, dated March 25, 2025. This immediate boost in share value reflects investor optimism following the contract win.
Specifically, the contract for the Uttarakhand Telecom Circle is valued at ₹2,647.12 crore, while the project in Madhya Pradesh, along with DNH and DD telecom circles, amounts to ₹8,157.44 crore. Both projects have a mandatory three-year execution timeline and a ten-year maintenance plan, showcasing the breadth of involvement required from NCC.
NCC’s responsibilities include the design, supply, construction, installation, upgrade, operation, and maintenance (O&M) of the middle-mile network of BharatNet, which is a significant expansion of telecommunications infrastructure in these regions.
The overall market capitalisation of NCC is now reported to be ₹13,675 crore, according to the Bombay Stock Exchange (BSE)—highlighting how the new orders dramatically impact investor sentiment and valuation. The stock opened higher at ₹215.20 on March 26, progressing to an intraday high of ₹217.55.
Though NCC shares have experienced ups and downs, such as a 33% decrease over the past six months, they have shown impressive growth of approximately 100% over the past two years. As per Trendlyne data, the average target price for NCC shares rests at ₹297, suggesting a considerable upside potential of 45% from current levels, further enticing investors.
However, it hasn't all been smooth sailing for NCC. The company reported a 12.5% decline in net profit for Q3 FY25, totaling ₹193.2 crore, down from the previous year’s ₹221 crore. Revenue from operations rose slightly by 1.6% to ₹5,344.5 crore compared to ₹5,260 crore in Q3 FY24, showcasing slow but steady growth amidst challenges. Additionally, earnings before interest, tax, depreciation, and amortization (EBITDA) fell by 16.6% to ₹420.9 crore from ₹504.4 crore a year ago.
Analysts are currently mixed on the stock; with ten out of fifteen tracking NCC recommending a buy. This reflects confidence in the company's new contracts and potential market growth, even as some remain cautious due to recent performance metrics. Nevertheless, with a robust order backlog now standing at ₹55,548 crore across various segments, the firm's future revenue should be more visible in coming years.
Last month, NCC had also secured additional substantial contracts, further diversifying its portfolio—such as ₹1,480.34 crore for redevelopment of Darbhanga Medical College and Hospital and another ₹2,129.60 crore contract from the Andhra Pradesh Capital Region Development Authority. Together, these newer contracts exhibit the firm’s solid footing in public sector infrastructure.
Looking at NCC’s trajectory, the established contracts signal growth amidst a competitive infrastructure environment. The anticipated order inflow of ₹20,000 to ₹22,000 crore for FY25, supported by a significant bidding pipeline, offers promising revenue visibility for NCC.
The market remains focused on the company's operations and financial health due to its diversified engagement across various domains including road construction, civil engineering, and environmental services. This further solidifies NCC's relevance in India's ambitious infrastructure landscape.
In summary, NCC’s recent activities, particularly securing major contracts from BSNL, set the stage for potential rebounds and growth in the stock market. With the firm poised for future projects and increasing capabilities, stakeholders are optimistic about its direction moving forward.
