National Buildings Construction Corporation (NBCC) shares extended their rally to a 13th straight day. On Friday, NBCC rose as much as 6 per cent to Rs 934. In last 13 trading sessions including today, the stock has gained nearly 32 per cent.
Analysts say, NBCC is seen as a key beneficiary of the Modi government's focus on infrastructure sector. On Thursday, Prime Minister Narendra Modi launched three housing schemes aimed at developing the urban infrastructure - Smart Cities mission, Atal Mission for Rejuvenation and Urban Transformation (AMRUT) and Housing for All mission. The three missions are likely to entail a total expenditure of around Rs 4 trillion over the next few years. NBCC being a government company has huge revenue potential from these projects, analysts say. (Read: PM Modi Launches Housing For All, Smart Cities)NBCC chairman and managing director Anoop Kumar Mittal expects the company's revenues to grow at a CAGR of 25 per cent in next five years. (Watch interview)
"NBCC has great opportunity in this...from next financial year things will start at ground also. In most of these schemes NBCC's role will be similar to what we did in Jawaharlal Nehru urban mission," said Mr Mittal.
For the current fiscal year NBCC expects a revenue growth of 25-35 per cent. At the end of May 2015, NBCC had a total order backlog of Rs 25,000 crore in which it expects margin of around 9 per cent, said Mr Mittal.
Shares in NBCC ended 5 per cent higher at Rs 926.40 apiece, outperforming the broader Nifty, which closed 0.2 per cent lower.
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