NBCC - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.7
| Stock Code | NBCC | Market Cap | 25,596 Cr. | Current Price | 94.8 ₹ | High / Low | 131 ₹ |
| Stock P/E | 40.7 | Book Value | 9.34 ₹ | Dividend Yield | 0.71 % | ROCE | 32.1 % |
| ROE | 24.1 % | Face Value | 1.00 ₹ | DMA 50 | 92.9 ₹ | DMA 200 | 99.4 ₹ |
| Chg in FII Hold | -0.21 % | Chg in DII Hold | -1.50 % | PAT Qtr | 135 Cr. | PAT Prev Qtr | 173 Cr. |
| RSI | 54.2 | MACD | 0.74 | Volume | 1,17,56,092 | Avg Vol 1Wk | 80,91,663 |
| Low price | 77.2 ₹ | High price | 131 ₹ | PEG Ratio | 1.47 | Debt to equity | 0.00 |
| 52w Index | 32.9 % | Qtr Profit Var | 4.89 % | EPS | 2.30 ₹ | Industry PE | 17.6 |
📊 Financials: The company shows solid profitability with ROE at 24.1% and ROCE at 32.1%, reflecting efficient capital usage. Debt-to-equity is 0.00, indicating a debt-free balance sheet. Quarterly PAT declined from ₹173 Cr. to ₹135 Cr., showing earnings pressure. EPS of ₹2.30 is modest relative to market capitalization, suggesting limited cash flow strength.
💹 Valuation: Current P/E of 40.7 is significantly higher than the industry average of 17.6, indicating overvaluation. The PEG ratio of 1.47 suggests moderate growth relative to price. Book value of ₹9.34 against a market price of ₹94.8 implies a stretched P/B ratio. Intrinsic value appears lower than current levels, requiring caution.
🏭 Business Model: The company operates in construction and project management, benefiting from government contracts and infrastructure demand. Competitive advantage lies in its strong execution capabilities and debt-free status, though earnings volatility and valuation risks remain.
📈 Entry Zone: A favorable entry would be closer to ₹85–90, near the 50 DMA of ₹92.9. Current price of ₹94.8 is slightly above fair value, so accumulation on dips is recommended.
⏳ Long-Term Holding: Strong return ratios and debt-free balance sheet support long-term holding. However, stretched valuations and declining quarterly profits suggest cautious accumulation rather than aggressive buying.
Positive
- ✅ Strong ROE (24.1%) and ROCE (32.1%)
- ✅ Debt-free balance sheet (Debt-to-equity 0.00)
- ✅ Dividend yield of 0.71% adds shareholder value
Limitation
- ⚠️ High P/E (40.7) compared to industry average
- ⚠️ Stretched P/B ratio (Price ₹94.8 vs. Book Value ₹9.34)
- ⚠️ Decline in quarterly PAT from ₹173 Cr. to ₹135 Cr.
Company Negative News
- 📉 Decline in FII holding (-0.21%) and DII holding (-1.50%) shows reduced institutional confidence
Company Positive News
- 📈 Debt-free status strengthens financial stability
- 📈 Dividend yield of 0.71% provides shareholder returns
Industry
- 🏗️ Construction sector benefits from government infrastructure spending
- 📊 Industry P/E at 17.6 suggests peers are valued lower
- 🌍 Growth opportunities in urban development and housing projects
Conclusion
Overall, the company is financially strong with solid return ratios and a debt-free balance sheet. However, valuations are stretched compared to industry peers, and earnings have shown recent weakness. Best strategy is cautious accumulation near ₹85–90 for long-term holding, while avoiding aggressive buying at current levels.
Would you like me to extend this with a peer comparison against other construction and infrastructure companies, or a technical analysis view to highlight support/resistance and momentum indicators?