National Building Construction Corporation (NBCC) a Navratna company, is one of the largest Public Sector Enterprises (PSEs) in the construction space. Its Project Management Contract (PMC) division (~85% of FY2015 revenues) is a cash cow business, which gets large orders on nomination basis and enjoys a negative working capital cycle. Huge opportunities in the pipeline NBCC reported an order book of Rs30,000cr as of 2QFY2016-end, reflecting 5.8x last twelve month (LTM) revenues. Of the Rs30,000cr order book, the PMC segment accounted for a major 92% (includes ~Rs3,500cr Kidwainagar redevelopment project), whereas the remaining is from Real Estate (5%) and EPC (3%) segments. Considering the emerging bid pipeline for re-development works from Delhi and other State governments, and with Smart City projects to take-off shortly, we expect NBCC order book to grow 2-fold during 1HFY2016-18E to Rs59,440cr. Revenues and PAT to report 26.7% & 32.7% CAGR during FY2015-18E We expect NBCC to report a 26.7% revenue CAGR during FY2015-18E (to Rs9,506cr), mainly driven by an estimated 29.3% revenue CAGR from the PMC segment, where re-development projects would contribute the maximum. We expect NBCC to report 41.5% EBITDA CAGR during the same period, led by increased contribution from the PMC segment, which...