NCC wins Rs 2,130 crore contract in Amaravati

NCC shares increased by 6% after the company won a large infrastructure contract worth Rs 2,129.60 crore from the Andhra Pradesh Capital Region Development Authority (APCRDA). The project will take place in Amaravati and is valued as a 'Major Order' due to its size. The work includes building roads, drains, and water supply systems over five years. The Letter of Acceptance was received on March 19, 2025. The construction phase is expected to last three years, followed by a two-year defect liability period. NCC classified this order based on its internal policy, which defines major orders as those exceeding Rs 1,000 crore. Earlier in February, NCC also secured a smaller transportation project worth Rs 218.82 crore, which is set for completion in 36 months. Despite facing challenges, including a 12.5% drop in net profit for the third quarter of fiscal year 2025, analysts remain positive about the stock's future. NCC's average stock target price is Rs 302, suggesting a potential increase of 47% from its current price of Rs 208.6. Although the stock has fallen 36% in the last six months, it has seen a significant rise of 225% over the last three years. NCC currently has a market capitalization of Rs 12,729 crore.