Hold NBCC; target of Rs 220: ICICI Direct

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26 Aug, 2025 12:21

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ICICI Direct's research report on NBCC

We met the management of NBCC. The key takeaways are: -i) execution of several big ticket redevelopment projects to begin soon ii) senses strong opportunities from redevelopment of railway stations and iii) affordable housing segment to be huge opportunity where NBCC would act as land management agency. Overall, we like NBCC’s business model given the huge opportunities ahead and expect its revenues and earnings to grow at 37.4% and 32.9% CAGR, respectively, over FY17-19E.

Outlook

NBCC is set to benefit from strong orderbook, opportunities from railway station redevelopment, affordable housing and other big ticket redevelopment projects. However, we await execution pick-up. Given the rich valuation of the stock (currently trading at ~32x FY19E EPS), we maintain our HOLD rating on the stock with an SOTP based target price of  Rs 220 (~32x FY19E EPS).

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