NCC Share Price Surges on Receipt of Major Contract

Market Performance

NCC's share price increased nearly 6% on Thursday following the announcement of a new contract valued at approximately ₹2,130 crore. The stock rose by 5.94%, reaching ₹208.65 per share on the Bombay Stock Exchange (BSE).

Despite this recent gain, NCC's stock has declined 10% over the past month and over 33% year-to-date (YTD). In the last six months, the stock price has fallen 42%, and over the past year, it has declined 28%.

Major Contract Announcement

NCC disclosed receiving a Letter of Acceptance (LoA) dated March 19, 2025, from the Andhra Pradesh Capital Region Development Authority. The contract involves the construction of roads, drainage systems, water supply infrastructure, sewage facilities, utility ducts for power and ICT, recycled water pipelines, and avenue plantations in Zone-12 villages of Amaravati Capital City, Andhra Pradesh.

According to NCC's regulatory filing, the contract is valued at ₹2,129.60 crore, excluding GST. The project is expected to be executed over three years under a lump sum contract (percentage tender) arrangement.

Per the company's internal policy, any order or contract exceeding ₹1,000 crore (excluding GST) is categorized as a "Major Order."

Previous Order Details

On February 28, 2025, NCC announced another order worth ₹218.82 crore (excluding GST) received in February. This contract was related to the Transportation Division and was awarded by a State Government authority. The execution period for this project was also set at 36 months.

Share Price Return History

While NCC's share price has experienced fluctuations over the past year, the company has successfully secured several significant projects that will bolster its order book and business operations. The positive impact of these contracts is expected to be reflected in upcoming earnings reports, potentially driving future growth and influencing investor sentiment.

Summary

NCC's recent order win from the Andhra Pradesh Capital Region Development Authority marks another significant milestone for the company. Although the stock has faced downward trends over the past year, securing large infrastructure projects contributes to its long-term business prospects. The company's future performance will be closely linked to its execution capabilities and broader market conditions.