⚠ 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 | 23,870 Cr. | Current Price | 88.4 ₹ | High / Low | 131 ₹ |
| Stock P/E | 37.9 | Book Value | 9.34 ₹ | Dividend Yield | 0.76 % | ROCE | 32.1 % |
| ROE | 24.1 % | Face Value | 1.00 ₹ | DMA 50 | 96.0 ₹ | DMA 200 | 104 ₹ |
| Chg in FII Hold | -0.14 % | Chg in DII Hold | 1.28 % | PAT Qtr | 135 Cr. | PAT Prev Qtr | 173 Cr. |
| RSI | 44.4 | MACD | -3.93 | Volume | 2,03,75,261 | Avg Vol 1Wk | 1,27,40,781 |
| Low price | 75.0 ₹ | High price | 131 ₹ | PEG Ratio | 1.37 | Debt to equity | 0.00 |
| 52w Index | 24.1 % | Qtr Profit Var | 4.89 % | EPS | 2.30 ₹ | Industry PE | 15.2 |
📊 Financials
- Revenue & Profitability: PAT fell from ₹173 Cr. to ₹135 Cr. (-4.89%), showing short-term weakness. EPS at ₹2.30 is modest.
- Margins & Returns: ROCE (32.1%) and ROE (24.1%) highlight strong efficiency and profitability.
- Debt: Debt-to-equity ratio of 0.00 → debt-free, ensuring financial stability.
- Cash Flow: Strong profitability and zero leverage support healthy cash flows.
💹 Valuation
- P/E Ratio: 37.9 vs Industry PE of 15.2 → Overvalued compared to peers.
- P/B Ratio: ~9.46 (Price ₹88.4 / Book Value ₹9.34) → Expensive on book value basis.
- PEG Ratio: 1.37 → Growth moderately justifies valuation.
- Intrinsic Value: Current price trades above fair value estimates.
🏢 Business Model & Competitive Advantage
- NBCC operates in construction and project management, with government contracts providing stability.
- Competitive advantage lies in strong government backing and execution capabilities.
- Dividend yield of 0.76% adds modest shareholder value.
📈 Entry Zone & Long-Term Guidance
- Entry Zone: Attractive near ₹75–82 range (closer to 52W low of ₹75 and below DMA levels).
- Long-Term Holding: Suitable for investors seeking exposure to infrastructure growth. Accumulation at lower valuations is recommended.
✅ Positive
- Strong ROCE and ROE indicate efficient capital use.
- Debt-free balance sheet ensures financial safety.
- DII holdings increased (+1.28%), showing domestic institutional confidence.
⚠️ Limitation
- Valuation multiples (P/E, P/B) are significantly higher than industry averages.
- Quarterly profit decline (-4.89%) signals near-term weakness.
- EPS at ₹2.30 is modest relative to price.
📉 Company Negative News
- PAT dropped compared to previous quarter.
- FII holdings reduced (-0.14%), showing cautious foreign sentiment.
- MACD at -3.93 indicates bearish technical momentum.
📈 Company Positive News
- DII holdings increased (+1.28%), reflecting domestic institutional support.
- Debt-free balance sheet provides strong financial stability.
- ROCE above 30% highlights operational efficiency.
🏭 Industry
- Construction and infrastructure industry benefits from government spending and urban development.
- Industry PE at 15.2 suggests peers trade at more reasonable valuations, making NBCC relatively expensive.
🔎 Conclusion
- NBCC is fundamentally strong with high efficiency and debt-free balance sheet.
- However, valuations are stretched, and near-term profit weakness limits upside potential.
- Best strategy: Accumulate near ₹75–82 range for long-term holding, while avoiding aggressive buying at current levels.