Rekha Jhunjhunwala’s infra bet rallies 6% on 26 March 2025 trading session, after the company bagged an order worth INR 10,805 Cr from Bharat Sanchar Nigam Limited (BSNL). The Hyderabad-based infrastructure major has once again shown its ability to win big contracts, boosting investor confidence in an otherwise turbulent market.
The stock in the discussion is NCC Limited. As of December 2024, Rekha Jhunjhunwala holds 7,83,33,266 equity shares (12.5% stake) worth INR 1,691.2 crore.
NCC-BSNL Order Details
NCC Limited, in an exchange filing on 25 March 2025, announced that it has received two advance work orders from BSNL for the design, supply, construction, installation, upgradation, operation and maintenance of the middle mile network of BharatNet. The massive project is spread across two telecom circles — Uttarakhand and Madhya Pradesh, DNH & DD.
The order size is as follows:
- Uttarakhand Telecom Circle: INR 2,647.12 crore (excluding GST), with capital expenditure (capex) of INR 1,543.35 crore and operational expenditure (opex) of INR 1,103.77 crore.
- Madhya Pradesh, DNH & DD Telecom Circles: INR 8,157.44 crore (excluding GST), with capex of INR 4,189.05 crore and opex of INR 3,968.39 crore.
The execution timeline is clearly defined: construction will be completed in three years and an additional 10 years of maintenance. This long-term commitment is a testament to NCC’s reliability and technical expertise.
NCC Limited Stock Performance and Market Response
On 26 March’s trading session, NCC opened at INR 216.60 per share and made an intraday high of INR 218.22 per share (up 6%) from the previous day’s intraday low of INR 203 per share. At 11.03 AM, it is trading around INR 213 per share.
NCC shares surged by more than 2,200% in the last five years. On 30 March 2020, they were trading around INR 15.85 per share and made their all-time high of INR 364.50 per share (52-week high) on 31 July 2024. Notably, there is a 40% correction from their all-time high.
Notably, the 52-week low is INR 169.95 recorded on 3 March 2025. The market capitalization stands at INR 13,470 crore.
Stream of Big Orders
The BSNL order is another big addition to the series of big wins for NCC. Last week, the company received LoA worth INR 1,480.34 crore from Bihar Medical Services & Infrastructure Corporation for the redevelopment of Darbhanga Medical College & Hospital. On 19 March 2025, NCC got an order of INR 2,129.60 crore from Andhra Pradesh Capital Region Development Authority for urban infrastructure works in Amaravati Capital City.
Analyst View and Outlook
ICICI Securities has maintained a ‘Buy’ on the stock with a target price of INR 239 per share, meaning a lot of upside from here. Out of 15 analysts tracking NCC, 10 have a ‘buy’ recommendation, 2 have a ‘hold’, and 3 have a ‘sell’. The consensus 12-month target price implies 31.2% upside.
Financials and Execution Challenges
While order flows are good, Q3FY25 results showed a 12.5% decline in consolidated net profit to INR 193 crore due to slow execution and margin pressure. Revenue growth was 1.61% year on year. Management cited weak order book in the road EPC segment and project delays as key challenges.
Conclusion
For a company that has been in infrastructure since 1978, NCC’s ability to bag and execute large long term projects is its core strength. BSNL order adds financial muscle and positions NCC at the forefront of India’s digital infrastructure growth.
Investors will watch out for execution milestones, margin management and order book replenishment. While near-term volatility continues, NCC’s strategic wins and diverse project profile indicate it continues to be a key player in India’s infrastructure story.
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