Everyone is selling, the charts are red, but should you panic? Not at all. As a long term investor, my favorite time of the economic cycle is when great stocks sell at an unjustified discount. Today I want to bring to light the market’s darling – NBCC (India) Limited. Looking at its size, financial health and track record, I believe there’s an opportunity with NBCC (India) during these volatile times. See our latest analysis for NBCC (India)
NBCC (India) Limited engages in project management consultancy and real estate development businesses in India and internationally. NBCC (India) was founded in 1960 and with the company’s market cap sitting at ₹157.14b, it falls under the large-cap group. Generally, large-cap stocks are well-resourced and well-established meaning that a bear market will cause it to rejig some short-term capital allocations, but stock market volatility is hardly detrimental to its financial health and business operations. Therefore large-cap stocks are a safe bet to buy more of when the wider market is going down and down.
With zero debt on its balance sheet, NBCC (India) isn’t constrained to debt obligations and covenants, which can be burdensome during financial downturns. Highly-levered companies have to maintain a cash cushion to meet near-term interest payments as well as meet unforeseen circumstances. With no lenders’ needs to tend to, NBCC (India) enjoys financial flexibility and independence – an invaluable position to be in during bear markets. NBCC (India)’s enviable cash position of ₹38.40b provides it with more than enough liquidity to meet other near-term liabilities, placing it in a financially robust standpoint in the face of uncertainty.
534309’s annual earnings growth rate has been positive over the last five years, with an average rate of 12.43%, outperfoming the industry growth rate of 8.32%. It has also returned an ROE of 17.57% recently, above the industry return of 8.44%. This continuous market outperformance demonstrates a strong track record of delivering robust returns over many years, raising my confidence in NBCC (India) as a long-term hold.
Next Steps:
NBCC (India) makes for a robust long-term investment based on its scale, financial health and track record. Remember, in bear markets, sell-offs can be unjustified. Ask yourself, has anything really changed with NBCC (India)? If not, then why not scoop it up at a discount? Lining your portfolio with a few well-established companies can reduce your risk and help you scale your wealth in the long run. One thing you should remember though, is to do your homework. Do your own research, come up with your point of view. Below is a list I’ve put together of other things you should consider before you buy:- Future Outlook: What are well-informed industry analysts predicting for 534309’s future growth? Take a look at our free research report of analyst consensus for 534309’s outlook.
- Valuation: What is 534309 worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether 534309 is currently mispriced by the market.
- Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.