NCC shares rally nearly 150% in 1 year: Here's key reasons behind this rally

Shares of infrastructure construction company NCC Ltd have been in focus after the company reported strong results for the quarter ended March 2024 earlier this month.

The midcap infrastructure stock has gained more than 70% so far this year and over 146% in the past one year.

The recent rally in the stock price can be attributed to the company’s performance in the financial year ended March 31, 2024. The company’s robust orderbook, and the growth in net profit and revenue have also helped the stock price to rise.

Orders worth ₹26,000 crore in FY24

The company informed the stock exchanges, on April 1, that during the financial year 2023-24 the company secured orders totalling to around ₹26,000 crore. The company also mentioned in the release that it bagged orders worth ₹3,086 crore in the month of March, 2024, across different divisions.

Strong Q4 results

NCC Ltd posted a rise in its net profit and revenue from operations for the fourth quarter of FY24 and the full fiscal. The company’s net profit for the March quarter surged more than 17% to ₹238.74 crore against ₹202.97 crore in the corresponding quarter of the preceding fiscal. Sequentially, the company’s net profit for the March quarter grew more than 4% from ₹229.54 crore in the December quarter.

The company’s net profit for the financial year ended March 31, 2024, grew more than 14% to ₹740.41 crore compared to ₹646.21 crore in the preceding fiscal.

For the March quarter, revenue from operations of the company grew more than 31% YoY to ₹6,484.88 crore from ₹4,949.03 in the same quarter of the preceding financial year. The company’s revenue from operations for the March quarter grew more than 23% from ₹5,260.08 crore in the December quarter. Its revenue from operations for FY24 increased more than 34% to ₹20,844.96 crore compared to ₹15,553.41 crore in the preceding financial year.

Shares of NCC Ltd closed flat at ₹285.9 apiece on the NSE in today's trading session.

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