Here’s why NBCC stock is declining on day 6, caught in a 10% lower circuit

The stock had been rising between January 19 and February 02, giving a spectacular return of 93.5% in just two weeks, rising in value from ₹87.20 per to ₹168.65. The fall can be attributed to profit booking.

In today’s trading session, shares of NBCC (India), the state-owned construction company, were caught in the 10% down circuit at ₹133.15 apiece, continuing their bearish trend for the sixth straight trading session. This represents a 21% decrease over the course of the six days.

The stock had been rising between January 19 and February 02, giving a spectacular return of 93.5% in just two weeks, rising in value from ₹87.20 per to ₹168.65. The fall can be attributed to profit booking.

The stock saw significant rises of 10% and 19% on February 1 and 2, respectively. The government’s strong focus on affordable housing in the Union Budget 2024–2025 served as the catalyst for this increase.

According to the company’s exchange statement, eight fresh orders were secured in January, adding to the four orders that were received in December.

The stock has posted gains of 289% over the last 11 months, concluding 10 of those months in positive territory. January had a 59% increase, which was the greatest monthly performance for the stock. July and November had returns of more than 16.6% and 16%, respectively.

Interestingly, the National Cooperative Development Corporation placed one large order (NCDC). Under this order, 1,469 warehouses and other agri-infrastructure will be built, helping to create the largest grain storage plan in the world for the cooperative sector. This important order is valued at ₹1,500 crore in total.

In Q2 FY24 crore, the company reported a consolidated net profit of ₹82 crore, up from ₹77 crore in Q1 FY24 crore, according to its financials. In Q2 FY24, its operating revenue was ₹2,053 crore, up from ₹1,918 crore in Q1 FY24.