NBCC - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 19 Sept 25, 2:16 pm

Fundamental Rating: 4.2

📊 Core Financials Overview

Profitability

PAT this quarter: ₹114 Cr vs ₹208 Cr previous — a dip, but still solid considering the YoY profit variation of +31.7%.

EPS: ₹1.87 — modest, but consistent with its asset-light model.

Return Metrics

ROCE: 32.1% and ROE: 24.1% — both excellent, reflecting strong capital efficiency and shareholder value.

Debt Profile

Debt-to-equity: 0.00 — completely debt-free, a major strength.

Cash Flow: Not explicitly stated, but low debt and strong returns suggest healthy operating cash generation.

💹 Valuation Indicators

Metric Value Commentary

P/E Ratio 51.6 Richly valued vs. industry average of 20.6 — reflects optimism and PSU premium.

P/B Ratio ~12.8 High, especially for a PSU — suggests market pricing in future growth.

PEG Ratio 1.87 Fair — valuation aligned with growth expectations.

Intrinsic Value Likely near ₹90–₹95 Current price slightly above fair value, but justified by momentum and order book strength.

🧠 Business Model & Competitive Advantage

NBCC (India) Ltd. is a government-owned PSU specializing in

Project Management Consultancy (PMC): Core revenue driver — NBCC earns 5–10% of project cost as fees for managing government and institutional construction projects

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Engineering, Procurement & Construction (EPC): Executes large-scale infrastructure projects — roads, bridges, water systems.

Real Estate Development: Redevelopment of stressed assets and government colonies — including high-profile projects like Amrapali, MTNL, and HUDCO

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Order Book Strength

FY25 order inflows: ₹47,150 Cr (consolidated) — record-breaking.

FY26 target: ₹25,000 Cr — aggressive growth strategy

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Its competitive edge lies in government backing, execution capability, and redevelopment expertise, making it a key player in India’s infrastructure and urban renewal story.

📈 Technical & Sentiment Signals

RSI: 60.4 — neutral to slightly bullish.

MACD: Positive — mild upward momentum.

Volume: Below weekly average — suggests consolidation.

DMA 50/200: Price above both — confirms long-term uptrend.

🎯 Entry Zone & Long-Term Guidance

Suggested Entry Zone: ₹100–₹108 — near DMA levels and below recent highs.

Long-Term View: NBCC is a robust PSU with strong fundamentals, zero debt, and a massive order pipeline. Ideal for long-term holding, especially for investors seeking exposure to India’s infrastructure growth with government-backed stability. Dividend yield of 0.61% adds modest income support.

You can explore NBCC’s growth strategy and investment outlook

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or its business model breakdown

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for deeper insights. Let me know if you'd like a comparison with IRCON or Engineers India.

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www.thebusinessscroll.com

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concallanalysis.com

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