Buy NBCC; target of Rs 115: ICICI Direct

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26 Aug, 2025 12:21

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ICICI Directs research report on NBCC

We attended the analyst meet of NBCC. The key takeaways are: -i) execution of several big ticket projects to drive revenue growth ii) affordable housing segment to be huge opportunity iii) to acquire couple of government companies present in similar businesses. Overall, we like NBCC’s business model given the huge opportunities ahead and expect its revenues and earnings to grow at 35.8% and 36.9% CAGR, respectively, over FY18-20E.

Outlook
We like NBCC given its unique business model (PWO status leading to awarding of contract on nomination basis) and huge opportunities ahead. Furthermore, with fast tracking of contract awarding for big ticket projects, the management expect its execution to pick up from FY19E onwards. We expect its revenues, earnings to grow at 35.8%, 36.9% CAGR, respectively, in FY18-20E. Hence, we continue to maintain our BUY rating on the stock with an SOTP based target price of Rs 115 (implying ~27x FY20E EPS).
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