⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
NBCC - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.7
| Stock Code | NBCC | Market Cap | 25,758 Cr. | Current Price | 95.4 ₹ | High / Low | 131 ₹ |
| Stock P/E | 41.3 | Book Value | 9.34 ₹ | Dividend Yield | 0.70 % | ROCE | 32.1 % |
| ROE | 24.1 % | Face Value | 1.00 ₹ | DMA 50 | 108 ₹ | DMA 200 | 108 ₹ |
| Chg in FII Hold | -0.14 % | Chg in DII Hold | 1.28 % | PAT Qtr | 173 Cr. | PAT Prev Qtr | 114 Cr. |
| RSI | 30.8 | MACD | -4.68 | Volume | 1,50,93,923 | Avg Vol 1Wk | 1,26,59,536 |
| Low price | 70.8 ₹ | High price | 131 ₹ | PEG Ratio | 1.50 | Debt to equity | 0.00 |
| 52w Index | 41.0 % | Qtr Profit Var | 39.5 % | EPS | 2.05 ₹ | Industry PE | 16.9 |
📊 Core Financials
- Revenue & Profitability: Quarterly PAT improved from 114 Cr. to 173 Cr. (+39.5%), showing strong earnings momentum. EPS at 2.05 ₹ is modest relative to valuation.
- Margins: ROCE at 32.1% and ROE at 24.1% highlight strong efficiency and profitability.
- Debt: Debt-to-equity ratio of 0.00 indicates a debt-free balance sheet, enhancing financial stability.
- Cash Flow: Dividend yield of 0.70% is modest, suggesting reinvestment focus while still rewarding shareholders.
💹 Valuation Indicators
- P/E Ratio: 41.3 vs Industry PE of 16.9 → Overvalued compared to peers.
- P/B Ratio: Current Price (95.4 ₹) / Book Value (9.34 ₹) ≈ 10.2 → Very high, signals premium valuation.
- PEG Ratio: 1.50 → Fair but leaning expensive relative to growth.
- Intrinsic Value: Current price trades above fair value zone, limiting near-term upside.
🏭 Business Model & Competitive Advantage
- NBCC operates in project management consultancy, EPC contracts, and real estate development.
- Strong government backing and execution track record provide competitive advantage.
- Debt-free structure and high return metrics strengthen long-term sustainability.
📈 Entry Zone & Long-Term Guidance
- Entry Zone: Attractive accumulation range between 80 ₹ – 85 ₹, closer to support levels and below DMA 200.
- Long-Term Holding: Strong fundamentals and government backing make NBCC suitable for long-term investors, though current valuations suggest staggered buying.
✅ Positive
- Debt-free balance sheet ensures financial stability.
- Strong ROCE (32.1%) and ROE (24.1%) highlight efficiency.
- Quarterly PAT growth of 39.5% shows earnings momentum.
- DII holding increased by 1.28%, reflecting domestic institutional support.
⚠️ Limitation
- High P/E (41.3) and P/B (10.2) ratios indicate stretched valuations.
- Dividend yield of 0.70% is modest, limiting passive income appeal.
- Stock trading below DMA 50 and DMA 200 suggests weak near-term momentum.
📉 Company Negative News
- FII holding decreased by 0.14%, showing reduced foreign investor confidence.
- High valuation multiples may deter fresh institutional inflows.
📈 Company Positive News
- Quarterly PAT rose significantly from 114 Cr. to 173 Cr.
- DII inflows (+1.28%) highlight growing domestic investor interest.
- Strong government contracts pipeline supports future growth.
🌐 Industry
- Construction and project management sector benefits from infrastructure push in India.
- Industry PE at 16.9 suggests peers trade at lower valuations, highlighting NBCC’s premium pricing.
🔎 Conclusion
NBCC demonstrates strong fundamentals with debt-free operations, robust profitability, and government-backed contracts. However, valuations are stretched with high P/E and P/B ratios. Investors may consider entering around 80–85 ₹ for long-term holding, while avoiding aggressive buying at current levels. The company remains fundamentally healthy and strategically well-placed in India’s infrastructure growth story.
I can also map out technical support and resistance levels using RSI, MACD, and DMA data to complement this fundamental view if you'd like.