NBCC - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.7
| Stock Code | NBCC | Market Cap | 24,746 Cr. | Current Price | 91.6 ₹ | High / Low | 131 ₹ |
| Stock P/E | 39.3 | Book Value | 9.34 ₹ | Dividend Yield | 0.73 % | ROCE | 32.1 % |
| ROE | 24.1 % | Face Value | 1.00 ₹ | DMA 50 | 91.8 ₹ | DMA 200 | 100 ₹ |
| Chg in FII Hold | -0.21 % | Chg in DII Hold | -1.50 % | PAT Qtr | 135 Cr. | PAT Prev Qtr | 173 Cr. |
| RSI | 52.3 | MACD | 1.65 | Volume | 97,54,327 | Avg Vol 1Wk | 1,00,45,498 |
| Low price | 77.2 ₹ | High price | 131 ₹ | PEG Ratio | 1.42 | Debt to equity | 0.00 |
| 52w Index | 27.0 % | Qtr Profit Var | 4.89 % | EPS | 2.30 ₹ | Industry PE | 18.5 |
📊 Financials: NBCC shows strong efficiency with ROE at 24.1% and ROCE at 32.1%. The company is debt-free (0.00 debt-to-equity), which enhances financial stability. EPS is modest at ₹2.30, and quarterly PAT declined (₹135 Cr vs ₹173 Cr), reflecting earnings pressure despite overall resilience.
💹 Valuation: The stock trades at a P/E of 39.3, significantly above the industry average of 18.5, suggesting overvaluation. PEG ratio of 1.42 indicates moderate alignment with growth. Book value is low at ₹9.34, making the P/B ratio unattractive. Dividend yield of 0.73% provides limited income support.
🏭 Business Model: NBCC operates in construction and project management, with strengths in government contracts and infrastructure development. Its competitive advantage lies in debt-free operations and strong execution capabilities. However, earnings volatility and dependence on government projects remain challenges.
📈 Entry Zone: Attractive entry would be near ₹82–₹86, aligning with support levels and fairer valuation. Current price (₹91.6) is near the 50 DMA (₹91.8) but below the 200 DMA (₹100), suggesting consolidation. Long-term investors may accumulate cautiously on dips.
Positive
- Strong ROE (24.1%) and ROCE (32.1%).
- Debt-free balance sheet.
- Dividend yield of 0.73% provides steady payouts.
- Quarterly profit variation (+4.89%) shows resilience despite decline.
Limitation
- High P/E (39.3) vs industry average (18.5).
- Low EPS (₹2.30).
- Book value of ₹9.34 makes valuation stretched.
- Decline in FII (-0.21%) and DII (-1.50%) holdings.
Company Negative News
- Quarterly PAT declined (₹135 Cr vs ₹173 Cr).
- Reduced institutional confidence with FII and DII outflows.
Company Positive News
- Debt-free operations strengthen financial stability.
- Quarterly profit variation (+4.89%) shows resilience.
- Strong government-backed project pipeline.
Industry
- Construction and infrastructure sector remains cyclical and policy-driven.
- Industry P/E at 18.5 highlights NBCC’s premium valuation.
- Government contracts provide stability but limit diversification.
Conclusion
⚖️ NBCC demonstrates strong efficiency and debt-free status but trades at stretched valuations. Entry is favorable near ₹82–₹86 for long-term investors. Current levels suggest cautious accumulation, with better opportunities on dips. Holding is viable if government project momentum sustains, but valuation risks remain elevated.