NBCC stocks are on the way upwards. Know why

National Building Construction Company, a government owned real estate developer, resumed its upward journey after the company announced a stellar set of earnings.

NBCC said its first quarter net profit jumped 32 percent to 44.1 crore rupees compared with 33.5 crore rupees in the same quarter a year ago. Sales during April-June leapt 37 percent to 1149.3 crore rupees versus 841 crore rupees in the year-ago period.

NBCC's all three divisions -- PMC, Real estate and construction -- reported strong sales growth coupled with a rise in operating profit.

As a consequence, NBCC gained 35 rupees, or 3.5 percent, to 1,033 rupees on the National Stock Exchange, where 2.2 lakh shares were traded.

NBCC has seen its market capitalisation surge 131 percent to 11,900 crore rupees as investors bought into its strong business model. The shares trade at 8.6 times their book value of 115.2 rupees.

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