NCC Rebounds 3% on Fresh Road Order Win Today

NCC shares rose over 3% to Rs 123.69 on Friday, clawing back part of this week's sharp fall after the construction major announced a fresh order win from Hyderabad Growth Corridor Limited, giving the stock its first real bounce since a tough September quarter run. NCC secured a contract worth Rs 1,286.03 crore for building Radial Road-2, part of Hyderabad's upcoming Future City road network. The win comes close on the heels of two smaller contracts worth a combined Rs 500.22 crore bagged just last month, underlining a steady drumbeat of order inflow even as the stock itself has been under pressure, having slipped nearly 5.5% in the previous session alone. For an infrastructure contractor like NCC, order wins are the clearest forward indicator investors have, since revenue from a project typically flows in over several years after the award. The Radial Road-2 contract plugs the company into one of Hyderabad's marquee urban infrastructure pushes, adding visibility to an order book that has been the main pillar supporting the stock through a volatile year for construction counters caught between tight government capex cycles and rising input costs. The stock has swung between Rs 119.01 and Rs 217.25 over the past 52 weeks, with a market capitalisation of around Rs 7,766 crore, meaning today's price sits barely above its yearly low. Whether this order flow is enough to arrest the recent slide, or merely cushions it, will depend on how execution and margins on these newer contracts show up in coming quarters. Disclosure: Palash Kag, Proprietor, Sarathi Research (SEBI Reg. No. INH000012740). No position held in NCC. This article is for educational and informational purposes only and does not constitute investment advice or a recommendation to buy, sell, or hold any security. Please consult a registered advisor before making investment decisions.