Posted on March 26, 2025, by Niftynews
NCC shares surged by 6% in early trading on March 26, 2025, after the company announced that it had secured a Rs 10,805 crore order from Bharat Sanchar Nigam Limited (BSNL). The stock opened higher at Rs 215.20 on the BSE, over 5% above the last close of Rs 204.45. NCC shares later climbed to an intraday high of Rs 217.55, signaling strong investor confidence driven by this major contract win.
Key Details of the BSNL Project
NCC Ltd disclosed that it had received two Advance Work Orders from BSNL, which involves the design, supply, construction, installation, upgradation, operation, and maintenance of the middle-mile network under BharatNet. This project will cover important regions such as Uttarakhand, Madhya Pradesh, Dadra & Nagar Haveli, and Daman & Diu Telecom Circles.
- The project for Madhya Pradesh, Dadra & Nagar Haveli, and Daman & Diu is valued at Rs 8,157.44 crore, which includes Rs 4,189.05 crore for capital expenditure (capex) and Rs 3,968.39 crore for operational expenses.
- The contract for Uttarakhand is valued at Rs 2,647.12 crore, with Rs 1,543.35 crore allocated to capex and Rs 1,103.77 crore for operational expenses.
NCC’s Strong Order Book Fuels Investor Confidence
NCC has been consistently securing large orders, and this BSNL order is no exception. The company’s order book has been steadily growing, with high-value projects supporting its robust pipeline. Just a few days before securing the BSNL contract, NCC won a Letter of Acceptance (LoA) from the Bihar Medical Services & Infrastructure Corporation Limited for the redevelopment of Darbhanga Medical College & Hospital, worth Rs 1,480.34 crore.
Additionally, on March 19, 2025, the company received another LoA from the Andhra Pradesh Capital Region Development Authority (APCRDA) for infrastructure development in Amaravati, worth Rs 2,129.60 crore. These projects are crucial for NCC’s future revenue growth and contribute to its impressive order book.
Positive Outlook for NCC Shares
Given the strong order book, NCC is attracting significant investor interest. The latest BSNL contract is expected to boost the company’s earnings outlook and further solidify its position as a leader in infrastructure development. Analysts are optimistic about NCC’s ability to maintain strong revenue growth with such high-value contracts under its belt.
The BSNL project is expected to be a game-changer, providing the company with a steady stream of income and improving its execution pipeline. These factors contribute to a positive sentiment around NCC shares, which continue to perform well amid a growing infrastructure sector in India.
The Road Ahead: What Investors Can Expect
NCC’s growing order book, including the recent BSNL order, positions the company for continued success. Investors are closely watching the progress of these projects, particularly the BSNL BharatNet contract, to assess the potential impact on future earnings. The company’s strong focus on securing high-value contracts suggests that NCC shares will likely continue to benefit from a bullish outlook.
While NCC remains a major player in infrastructure development, investors will be looking for updates on the company’s execution progress and new order inflows in the coming months. The success of these projects will play a key role in determining the stock’s future direction and whether the current momentum in NCC shares can be sustained.
Conclusion: NCC’s Bright Future
With a strong pipeline of projects and strategic wins like the BSNL contract, NCC shares are in a favorable position for future growth. The company’s order book continues to provide a foundation for consistent revenue, making it an attractive option for investors interested in India’s booming infrastructure sector.
Disclaimer: The views and investment tips provided are based on publicly available information. Please consult certified financial experts before making any investment decisions.