In today s trade, the stock hit a new 52-week high of ₹219.70 apiece following India Ratings and Research (Ind-Ra) upgrading the company outlook to ‘positive’ from ‘stable’ while maintaining the long-term issuer rating at IND A plus.
The company will benefit from increased government spending on the infrastructure sector. Various business divisions are expected to perform better in the future. The government’s logistics infrastructure push is creating opportunities in the transportation vertical, while the growing electricity demand will support the electrical segment. The Ministry of Jal Shakti’s aim to provide a functional tap connection to every rural household by 2023-24 will boost the water segment. Analysts expect better performance due to increased government spending, strong order book, and strong risk management framework.
The third order for Rs 2,324 crores received from North Bihar Power Distribution Co Ltd., is for the Advanced Metering Infrastructure Project. This order with a duration of 9 years and 3 months is required to be executed by NCC itself.