NBCC (India) Ltd. share price target

NBCC's topline remained flat YoY at | 1266.6 crore. It was below our estimate of | 1546.1 crore mainly on account of lower-than-expected revenues in the PMC division. PMC division revenues grew 3.1% YoY to | 1149.1 crore vs. our expectation of | 1401.4 crore The EBITDA margin expanded 160 bps YoY to 5.1%. It was above our estimate of 4.5% mainly due to the strong performance in the PMC division where the EBIT margin was 13.4% (our estimate: 8.0%) Net profit grew robustly by 23.2% YoY to | 55.9 crore. However, it...

NBCC's topline grew 5.0% YoY to | 2342.0 crore. However, it was below our estimate of | 2434.7 crore mainly on account of lower-thanexpected revenues in the PMC division. PMC division revenues grew 5.8% YoY to | 2074.9 crore vs. our expectation of | 2360.4 crore EBITDA margin expanded sharply by 238 bps YoY to 8.9%. It was above our estimate of 6.7% mainly due to strong performance in high margin real estate division, which reported EBIT of | 31.9 crore (our estimate: | 4.1 crore) & EBIT margin of 30.7% (our estimate: 18.1%) PAT grew robustly by 42.9% YoY to | 174.8 crore (our estimate:...

Robust Performance on Operational Parameters; Maintain HOLD NBCC's reported 4QFY17 performance has topped our estimates mainly on account of a substantial improvement in operating performance. Top-line grew by 5% YoY to Rs23.4bn aided by 114% YoY improvement in real estate revenue. While PMC revenue improved by 6% YoY to Rs20.7bn (89% of total revenue), EPC revenue contracted by 26% YoY to Rs1.6bn. EBITDA improved by a sharp 133% YoY and 225% QoQ to Rs2.05bn, while EBITDA margins stood at strong 8.8% (+483bps YoY and +429bps QoQ). Net profit stood Rs1.75bn (+43% YoY and +174% QoQ) mainly supported by healthy operating performance. Notably, order Book stands at Rs740bn (11.9x FY17...

Company may achieve Rs.150bn+ revenues in FY19: NBCC operates in three segments: (1) PMC a mix of redevelopment project and others; (2) Company-owned Real Estate land parcel; and (3) EPC. With 90% order backlog tilted towards PMC, we think FY19 could be the game changing event. And even in the worse-case, say, with delay in revenue recognition, NBCC has no reason to worry. Here is the reason why: With additional Rs250bn orders in pipeline, order accretionwith price escalation clause-- is clearly on cards. Thereby, we will not be surprised if NBCC recognizes Rs.200bn revenues in one fiscal. The bout of higher margin in PMC may not continue: Currently, NBCC makes margins in excess of 9%+. In new contracts of preparatory work, the PMC margin may...

The current backlog is ~Rs750 bn. Even if company bags no new orders, the existing backlog can flip the earnings. With a target price of Rs309, we maintain a BUY. Result highlights and Investment rationale...

ICICI Securities Ltd | Retail Equity Research NBCC's (NBCC) topline grew 3.7% YoY to | 1408.3 crore. However, sales were below our estimate of | 1677.5 crore due to lower-thanexpected revenues in the PMC division. PMC division revenues grew 8.1% YoY to | 1340.9 crore vs. our expectation of | 1571.7 crore The EBITDA margin expanded 101 bps YoY to 5.3%. It was above our estimate of 4.2% mainly due to higher-than-expected EBIT margin in the PMC division (10.8% in Q3FY17 vs. our expectation of 7.5%) PAT grew 10.1% YoY to | 63.7 crore (our estimate: | 63.0 crore). PAT...

National Buildings Construction Corporation Ltd. (NBCC) is a 56 year old Navratna PSU company. The company is present in three main segments, i.e. (i) Project Management Consultancy (PMC), (ii) Real Estate Development (RE) & (iii) EPC Contracting. The PMC contributes ~85-90% of its annual turnover. It gets PMC contracts on nomination basis, as it is notified as a Public Work Organization under revised Rule 126 (2) of general financial rules (GFR). It undertakes the entire project...

Net sales grew 15.0% YoY to | 1215.7 crore driven by growth in the PMC division (grew 24.9% YoY to | 1121.2 crore). However, sales were below our estimate of | 1288.5 crore mainly on account of lower-than-expected revenues in the PMC division (| 1121.2 crore in Q2FY17 vs. our expectation of | 1170.8 crore) and EPC division (| 49.2...

Insipid Quarterly Performance; Growth Prospects Remain Promising Backed by robust order backlog, top-line of NBCC (India) grew by ~15% yoy to Rs12.15bn in 2QFY17 vs. our estimates of Rs11.70bn. Operating profit excluding other operating and other income declined by 31% yoy to Rs390mn vs. our estimate of Rs538mn. A sharp correction in Real Estate margin was the prime reason for dismal performance on operating front. Its Management expects operating margins to improve in coming quarters with the beginning of revenue booking from new re-development projects and pick-up in execution from new projects, which would also get a boost from booking of marketing...

Think: NBCC is a company with a book-bill ratio of 11.6x FY17E something unparalleled by Indian standards. Think again: A Q1FY17 miss of revenue/EBITDA/PAT expectations simply does not push the needle. Think again and again: Here is a company that is targeting the order-backlog to move up to Rs1 tn, from Rs710 bn in few years. And that is not all: This is a growth company with a strong visibility. With earnings, which do not capture the steady-state scenario, the conventional...