NCC stock jumps 6% on Rs 10,805 crore BSNL order; rallies on strong order book

NCC Ltd shares gained 6 per cent in early trading on Wednesday after the company won a Rs 10,805 crore order from Bharat Sanchar Nigam Limited (BSNL). The stock opened higher at Rs 215.20 on BSE, more than 5 per cent above the last close of Rs 204.45. It later rose to an intraday high of Rs 217.55 as investors welcomed the big order victory.

BSNL project details

NCC Ltd announced on Tuesday post-market hours that it received two Advance Work Orders from BSNL. The contract involves the design, supply, construction, installation, upgradation, operation, and maintenance of the middle-mile network of BharatNet. The project will cover Uttarakhand, Madhya Pradesh, Dadra & Nagar Haveli, and Daman & Diu Telecom Circles.

The order for Madhya Pradesh, Dadra & Nagar Haveli, and Daman & Diu is valued at Rs 8,157.44 crore (excluding GST), comprising Rs 4,189.05 crore in capex and Rs 3,968.39 crore in operational expenses. Meanwhile, the contract for Uttarakhand is worth Rs 2,647.12 crore, with Rs 1,543.35 crore allocated to capex and Rs 1,103.77 crore for operational expenses.

Order book gains momentum

NCC has been winning a string of high-value orders over the past few weeks. On March 21, the firm won a Letter of Acceptance (LoA) from Bihar Medical Services & Infrastructure Corporation Limited for redevelopment of Darbhanga Medical College & Hospital, valued at Rs 1,480.34 crore.

Also on March 19, NCC received another LoA from Andhra Pradesh Capital Region Development Authority (APCRDA) for infrastructure development of Amaravati Capital City worth Rs 2,129.60 crore.

Bullish outlook for NCC

With a solid order book, NCC is seeing sharp investor buying interest. The new deals put the company in a position to maintain strong revenue growth. Analysts opine the newest BSNL project will lift the company's earnings view and improve its execution pipeline.

While NCC keeps landing major infrastructure contracts, market players continue to look positively at the long-term outlook for the company. Investors will now look for execution reports and additional order flows to gauge the stock's next direction.