NCC Limited, a prominent construction company, has secured a significant Letter of Acceptance (LoA) for a section of the Mumbai Metro project, a development that comes as its shares showed a slight dip recently, despite an impressive long-term performance.
Major Mumbai Metro Contract Win
NCC Limited announced on July 11 that it has received a crucial Letter of Acceptance from the Mumbai Metropolitan Region Development Authority (MMRDA). This contract is for Package 1-CA-232 of the Mumbai Metro Line 6.
The total value of this new contract stands at approximately Rs 2269 crore, excluding GST. This marks a substantial addition to the company’s order book.
The scope of work for NCC Limited is extensive. It includes the “Design, Manufacture, Supply, Installation, Integration, Testing, and Commissioning of Rolling Stock, Communication-Based Signaling & Train Control, Telecommunication Systems, Platform Screen Doors and Depot Machinery & Plant for Line 6 [Swami Samarth Nagar to Vikhroli – (EEH)] of the Mumbai Metro Rail Project.”
Share Performance Overview
On Friday, July 11, shares of NCC Limited closed slightly down at Rs 220.85 apiece, marking a 1.19 percent decline. The company’s total market capitalization is currently Rs 13865.99 crore.
The stock’s 52-week high was recorded at Rs 364.50 on July 31, 2024, while its 52-week low stood at Rs 170.05 on March 3, 2025. In the short term, shares have seen negative returns of 1.42 percent over the last week and 3.48 percent over two weeks. Over the past year, the shares are down by 33.33 percent.
However, NCC Limited has delivered remarkable returns over longer periods. Investors have seen gains of 74.13 percent over two years, 279.06 percent over three years, and a staggering 561.94 percent over five years. Looking back a decade, the company’s shares have risen by 177.53 percent.
Dividend and Bonus History
NCC Limited has a history of paying dividends to its shareholders. In both 2023 and 2024, the company paid a dividend of Rs 2.20 per share. In 2022, the dividend was Rs 2.00, while in 2021 it was Re 0.80 and in 2020, Re 0.20.
The company has not issued any bonus shares to its equity shareholders to date.
- NCC Limited secured a Rs 2269 crore contract for Mumbai Metro Line 6.
- The contract covers various critical systems for the metro line.
- Despite recent share price dips, NCC has delivered over 500% returns in five years.
- The company has consistently paid dividends to its shareholders.
This new contract solidifies NCC’s position in the infrastructure sector, contributing to its long-term growth prospects despite short-term market fluctuations.
