NCC Share Price Rises Over 6% On Rs 2,130-Crore Order Win

The shares of NCC Ltd. on Thursday rose over 6% to hit over one-month high after it secured a contract from Andhra Pradesh Capital Region Development Authority for construction activities in the Amaravati Capital City Project.

The Rs 2,129.6 crore project includes building roads, drains, water supply, sewage, utility ducts for power and ICT, reuse of waterline and avenue plantation etc. at Zone-12 village area in Amaravati. The construction work will be completed in three years and the defects liability period will be two years, according to the exchange filing on Wednesday.

Earlier this week, Andhra Pradesh Chief Minister N Chandrababu Naidu approved land allocations for various entities in the greenfield capital city of Amaravati, as well as the provision of free power to weavers, among other decisions.

The authority will approve 22 works worth Rs 22,607 crore for L1 bidders.

Work for the Amaravati capital restarted in June last year, with activities commencing at Uddandarayunipalem, where the foundation stone was originally laid.

The shares of NCC rose as much as 6.03% to Rs 208.60 apiece, the highest level since Feb. 10. It pared gains to trade 2.58% higher at Rs 201.80 apiece, as of 12:12 p.m. This compares to a 0.70% advance in the NSE Nifty 50 Index.

It has fallen % in the last 12 months and 27.26% year-to-date. Total traded volume so far in the day stood at 5.5 times its 30-day average. The relative strength index was at 56.

Out of 14 analysts tracking the company, nine maintain a 'buy' rating, two recommend a 'hold,' and three suggest 'sell,' according to Bloomberg data. The average 12-month consensus price target implies an upside of 33.3%.