Stock in Focus: Construction company NCC Limited has won a huge contract worth ₹6,828.94 crore from Central Coalfields Limited (CCL). This project is related to excavation and transportation of coal and overburden under Amrapali Opencast Project (OCP) located in Chandragupta area of Jharkhand.
Excavation of coal and overburden
NCC informed the stock exchange on Saturday (October 25) that it had received the Letter of Acceptance (LoA) on October 24. The project involves removal of 413.59 million cubic meters of overburden with the help of Heavy Earth Moving Machinery (HEMM), excavation of 233.325 million tonnes of coal and transportation of it to Shivpur Siding and Surface Stockyard.
The company will also do wagon loading
NCC Limited has also been entrusted with the responsibility of wagon loading of 139.995 million tonnes of coal at Shivpur Siding. This project will be completed in a total of 2,915 days. This includes a 360-day development phase and a seven-year production period.
The company clarified that this order has been received from a domestic company and it does not involve any kind of related-party transaction. Also, the promoters of the company or the promoter group do not have any interest in Central Coalfields Limited.
Status of NCC shares
Shares of NCC closed at Rs 209.69 with a marginal decline of 0.05% on Friday. The company’s shares have been almost flat for the last 6 months and during this period investors have got 0.98% negative returns. At the same time, shares have declined by 24.46% in the last one year. The stock has given multibagger returns of 490.68% in the last 5 years. The market cap of NCC is Rs 13.13 thousand crore.
What is the business of NCC Limited?
NCC Limited is a large infrastructure and construction company, which works on different types of projects across the country. The company deals with works like roads, bridges, buildings, water supply, irrigation, electricity, railways, mining and metro. It handles both government and private sector projects and undertakes the entire engineering, material procurement and construction (EPC) work.
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