The shares of the Navratna PSU company, specializing in project management consultancy, engineering procurement & construction, and real estate development, are in focus after Elara Capital initiated a Buy Target with an upside potential of 43 percent.
With a market capitalization of 31,347.00 Crores on Wednesday, the shares of NBCC (India) Ltd jumped upto 0.8 percent, making a high of Rs. 116.70 compared to its previous close of Rs. 115.70.
NBCC (India) Ltd, engaged in project management consultancy, engineering procurement & construction, and real estate development, is in focus after a leading Global brokerage firm, Elara Capital, initiated a Buy Target of Rs. 165 on it with an upto 43 percent Upside Potential from day’s opening price.
The reasons for the “Buy” target
Record Order Inflows: NBCC reported a 3x jump in order inflows, reaching ₹69,100 crore in FY25, the highest in its history. This massive order book provides strong revenue visibility for the coming years.
Exceptional Earnings Growth: NBCC delivered a 47% compound annual growth rate (CAGR) in earnings between FY2020 and FY2025, significantly outperforming the average 8% CAGR seen in the broader PSU engineering consultancy space.
Strong Revenue and Profit Outlook: Elara Capital expects NBCC’s revenue and earnings to grow at a healthy CAGR of 24% and 23% respectively, over FY2025–FY2028, driven by robust project execution and rising order inflows.
Improved Margins: The company’s EBITDA margin improved to 6.25% from 6.09% in the previous year, showing a steady improvement in profitability.
Strategic Position in Key Sectors: NBCC is seen as a preferred Central Public Sector Enterprise (CPSE) due to its expertise in redeveloping government land, reviving stalled private real estate projects, and constructing buildings and hospitals.
Strong Financials: NBCC operates an asset-light business model, remains debt-free, and maintains a lean working capital cycle. These factors contribute to superior return ratios of over 20%, making it financially robust.
Financials & Others
The company’s revenue rose by 15 percent from Rs. 4,075.87 crores to Rs. 4,700.86 crores in Q4FY24-25. Meanwhile, Net profit rose from Rs. 136.08 crores to Rs. 175.92 crores in the same period.
The company is debt-free and has shown strong financial performance, with an average ROE of 15.78 percent and ROCE of 18.23 percent over the last three years. Additionally, it has achieved an average net profit growth of 20.31 percent during the same period.
NBCC (India) Limited, incorporated in 1960, is a Navratna Central Public Sector Enterprise (CPSE) under the Ministry of Housing and Urban Affairs with over 64 years of experience in the construction sector. With a pan-India and global presence, NBCC is one of the largest construction companies in India.
NBCC (India) Limited has recently signed a strategic MoU with MAHAPREIT to jointly develop major projects in Maharashtra, including cluster development, data centers, slum rehabilitation, and residential projects, with an estimated value of ₹25,000 crore.
Other key projects include the planning and execution of a 50-acre mixed-use development at Poorvi Vihar, Lucknow (₹3,500 crores), township and building works for Damodar Valley Corporation (₹916.56 crores), and infrastructure projects for the Uttarakhand Investment and Infrastructure Development Board (₹518 crores).
The consolidated order book of ₹1,20,533 crore. The company operates through key subsidiaries such as HSCC (100%), HSCL (51%), and NSL (100%), further strengthening its diversified portfolio and leadership in the industry.
In Q4FY25, NBCC reported a 4.51 percent increase in revenue from its Project Management Consultancy (PMC) segment, reaching Rs. 2,892.57 crore. The Real Estate (RE) segment saw a significant growth of 184.45 percent to Rs. 160.09 crore, while the Engineering Procurement & Construction (EPC) segment declined by 9.45 percent to ₹159.29 crore compared to the previous year.
Written by Sridhar J
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