BSE:534309

Stock Analysis Report

Executive Summary

NBCC (India) Limited engages in project management consultancy and real estate development businesses in India and internationally.

Rewards

Trading at 69% below its fair value

Earnings are forecast to grow 64.8% per year

Risk Analysis

Unstable dividend track record

Highly volatile share price over past 3 months

Profit margins (1.6%) are lower than last year (4.7%)



Snowflake Analysis

Exceptional growth potential with flawless balance sheet.

Share Price & News

How has NBCC (India)'s share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 534309's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-2.2%

534309

-2.1%

IN Construction

-0.8%

IN Market


1 Year Return

-39.3%

534309

0.6%

IN Construction

11.1%

IN Market

Return vs Industry: 534309 underperformed the Indian Construction industry which returned 1.5% over the past year.

Return vs Market: 534309 underperformed the Indian Market which returned 11.1% over the past year.


Shareholder returns

534309IndustryMarket
7 Day-2.2%-2.1%-0.8%
30 Day-18.8%-4.3%-2.3%
90 Day-17.2%-5.1%2.1%
1 Year-38.2%-39.3%1.9%0.6%13.1%11.1%
3 Year-64.4%-65.7%10.8%6.7%22.9%16.2%
5 Year-42.2%-45.1%12.5%6.1%34.9%22.6%

Price Volatility Vs. Market

How volatile is NBCC (India)'s share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is NBCC (India) undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 534309 (₹30.55) is trading below our estimate of fair value (₹98.66)

Significantly Below Fair Value: 534309 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 534309 is poor value based on its PE Ratio (39.8x) compared to the Construction industry average (11.1x).

PE vs Market: 534309 is poor value based on its PE Ratio (39.8x) compared to the Indian market (13.4x).


Price to Earnings Growth Ratio

PEG Ratio: 534309 is good value based on its PEG Ratio (0.6x)


Price to Book Ratio

PB vs Industry: 534309 is overvalued based on its PB Ratio (4.2x) compared to the IN Construction industry average (0.6x).


Next Steps

Future Growth

How is NBCC (India) forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

64.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 534309's forecast earnings growth (64.8% per year) is above the savings rate (6.5%).

Earnings vs Market: 534309's earnings (64.8% per year) are forecast to grow faster than the Indian market (20.5% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 534309's revenue (22.2% per year) is forecast to grow faster than the Indian market (9% per year).

High Growth Revenue: 534309's revenue (22.2% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 534309's Return on Equity is forecast to be high in 3 years time (29.5%)


Next Steps

Past Performance

How has NBCC (India) performed over the past 5 years?

0.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 534309 has high quality earnings.

Growing Profit Margin: 534309's current net profit margins (1.6%) are lower than last year (4.7%).


Past Earnings Growth Analysis

Earnings Trend: 534309's earnings have grown by 0.5% per year over the past 5 years.

Accelerating Growth: 534309's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 534309 had negative earnings growth (-64.6%) over the past year, making it difficult to compare to the Construction industry average (3.8%).


Return on Equity

High ROE: 534309's Return on Equity (10.8%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is NBCC (India)'s financial position?


Financial Position Analysis

Short Term Liabilities: 534309's short term assets (₹119.8B) exceed its short term liabilities (₹112.7B).

Long Term Liabilities: 534309's short term assets (₹119.8B) exceed its long term liabilities (₹1.2B).


Debt to Equity History and Analysis

Debt Level: 534309 is debt free.

Reducing Debt: 534309 had no debt 5 years ago.

Debt Coverage: 534309 has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: 534309 has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: 534309 has a low level of unsold assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if 534309's debt is covered by short term assets.


Next Steps

Dividend

What is NBCC (India)'s current dividend yield, its reliability and sustainability?

2.13%

Current Dividend Yield


Dividend Yield vs Market

company2.1%marketbottom25%0.6%markettop25%2.5%industryaverage1.4%forecastin3Years2.4%

Current dividend yield vs market & industry

Notable Dividend: 534309's dividend (2.13%) is higher than the bottom 25% of dividend payers in the Indian market (0.59%).

High Dividend: 534309's dividend (2.13%) is low compared to the top 25% of dividend payers in the Indian market (2.52%).


Stability and Growth of Payments

Stable Dividend: 534309 has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: 534309's dividend payments have increased, but the company has only paid a dividend for 8 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (84.7%), 534309's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 534309's dividends in 3 years are forecast to be well covered by earnings (33.6% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.0yrs

Average management tenure


CEO

P. Gupta 0

0.3yrs

Tenure

0

Shri P. K. Gupta serves as Chairman & Managing Director of NBCC (India) Limited since October 7, 2019. He serves as an Executive Director of Regional Projects at RITES Ltd. and served as its Executive Dire ...


Leadership Team

NamePositionTenureCompensationOwnership
Baldev Sokhey
Director of Finance & Director0.5yrs₹4.55m0.00028% 161.3k
Deepti Gambhir
Compliance Officer & Company Secretary6.3yrs₹2.93m0.00036% 207.4k
Rajendra Chaudhari
Director of Commercial & Director4.7yrs₹7.12m0.00066% 380.2k
Neelesh Kumar Shah
Director of Projects & Additional Director2yrs₹6.99m0.00056% 322.6k
P. Gupta
Chairman & MD0.3yrsno datano data
Ram Mehra
Executive Director of Engineering and Head of Regional Business Group - East0yrs₹1.70mno data
Sanjiv Swarup
Chief Vigilance Officer4.8yrsno datano data

2.0yrs

Average Tenure

58yo

Average Age

Experienced Management: 534309's management team is considered experienced (2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Baldev Sokhey
Director of Finance & Director0.5yrs₹4.55m0.00028% 161.3k
Rajendra Chaudhari
Director of Commercial & Director4.7yrs₹7.12m0.00066% 380.2k
Neelesh Kumar Shah
Director of Projects & Additional Director2yrs₹6.99m0.00056% 322.6k
P. Gupta
Chairman & MD0.3yrsno datano data
Shyam Dubey
Government Nominee Director0.5yrsno datano data
Shiv Meena
Director0.8yrsno datano data
Jyoti Shukla
Independent Director0.5yrsno datano data
Kamran Rizvi
Government Nominee Director0.08yrsno datano data

0.5yrs

Average Tenure

55yo

Average Age

Experienced Board: 534309's board of directors are not considered experienced ( 0.5 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

NBCC (India) Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: NBCC (India) Limited
  • Ticker: 534309
  • Exchange: BSE
  • Founded: 1960
  • Industry: Construction and Engineering
  • Sector: Capital Goods
  • Market Cap: ₹57.600b
  • Shares outstanding: 1.80b
  • Website: https://www.nbccindia.com

Number of Employees


Location

  • NBCC (India) Limited
  • NBCC Bhawan
  • Lodhi Road
  • New Delhi
  • Delhi
  • 110003
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
534309BSE (Mumbai Stock Exchange)YesEquity SharesININRApr 2012
NBCCNSEI (National Stock Exchange of India)YesEquity SharesININRApr 2012

Biography

NBCC (India) Limited engages in project management consultancy and real estate development businesses in India and internationally. The company also provides engineering, procurement, and construction (EPC) contracting services. Its Project Management Consultancy segment offers services for various civil construction projects, including residential and commercial complexes, re-development of colonies, hospitals, educational institutions, infrastructure works for security personnel, and border fencing projects, as well as infrastructure projects, such as roads, water supply systems, storm water drainage systems, water storage solutions, and solid waste management schemes. The company’s EPC segment executes various projects, which include chimneys, cooling towers, coal handling plants, roads, bridges, flyovers, metro stations, metro elevated tracks, water and sewage treatment plants, solid waste management systems, TV towers, airports, runways, border fencing, etc. Its Real Estate Development segment develops residential, commercial, and institutional projects. The company is also involved in the provision of post-construction maintenance services; construction of harbors and electricity network; implementation of integrated steel plants; procurement, supply, installation, and commissioning of medical equipment; and environment and sustainability business. The company was formerly known as National Buildings Construction Corporation Limited and changed its name to NBCC (India) Limited in May 2016. NBCC (India) Limited was founded in 1960 and is headquartered in New Delhi, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/17 13:05
End of Day Share Price2020/02/17 00:00
Earnings2019/12/31
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.