NBCC (India) Ltd. share price target

Earnings visibility declined due to slow pace in awarding of order backlogs and poor execution due to shortage of workforces. Besides execution delays, the major challenge NBCC currently...

While NBCC's order book position has remained strong, its revenue and margin performance was benign with challenges witnessed in big-ticket size redevelopment projects and margins declining in the PMC segment. While there are triggers such as a) expected surge in executable order book position, b) improvement in margins and c) with lean-balance sheet position, we will await execution and margin pick-up before turning constructive. We...

Order book remains strong at Rs72,000cr, however orders worth ~Rs17,000cr were in execution stage and NBCC targets to take total projects under execution to ~Rs27,000cr in FY21. NBCC got clearance for Nauroji Nagar projects while Netaji Nagar & Sarojini Nagar projects are awaiting forest clearances. We cut FY21E/22E EPS estimates by 47%/28% due to fall in PMC margins and slow pace in real estate business. We value NBCCs core business at a P/E of 13x on FY22E EPS &...

EBITDA margin fell by 636bps YoY to 1.2% owing to poor execution and higher consultancy & other expenses. Order book remains strong at Rs70,000cr, however orders worth...

Q3FY20 revenue declined by 23% YoY due to execution woes on redevelopment project and 79% slid in real estate revenue. EBITDA margin fell by 350bps YoY to 0.9% owing to poor execution and higher consultancy & other expenses. Order book remains strong at Rs72,000cr, however orders worth ~Rs19,000cr only were in execution stage. Three main re-development projects are currently in standstill position, court hearing was completed and the judgement is...

Currently executing | 25,000 crore out of | 80,000 crore OB NBCC's consolidated order book (OB) was at ~| 80,000 crore (~| 72,000 crore standalone OB) as of Q2FY20. Of this OB, | 25,000 crore orders are currently under execution while | 34,000 crore are stuck projects due to approval related issues. On the tendering front, it is looking to award projects worth | 5,000 crore in H2FY20E. On the execution front, it has been weak in H1FY20 as PMC projects worth ~| 34,000 crore (~47% of the standalone OB) are stuck. Nonetheless, the management expects to get...

Q1FY20 revenue declined by 23% YoY due to significant slid in real estate revenue and 13% fall in the PMC segment. EBITDA margin fell near to zero level due to execution woes on redevelopment project and absence of high margin real estate revenue....

NBCC's consolidated topline grew 2.0% YoY to | 1,891.1 crore, lower than our estimate of | 2,544.1 crore. EBITDA margins contracted 220 bps YoY to 1.4% in Q1FY20 due to a sharp contraction in real estate margins. PAT degrew 33.2% YoY to | 48.9 crore mainly on account of lower topline growth...

NBCC reported a poor performance in 1QFY20, with its reported revenue declining by a steep 23% YoY to Rs12.5bn, while EBITDA pummelled by 97% YoY to mere Rs19mn. PMC revenue declined by ~13% YoY, while RE and EPC revenue declined significantly by 96% and 69%, respectively. Net profit declined by 63% YoY to Rs253mn and net margin stood at 2% as against 4.1% in 1QFY19 and 6.4% in 4QFY19. While the Management did not give any convincing reason for sharp decline in revenue, it exuded confidence that revenue should recover in the ensuing quarters. We understand that slowdown in governments' expenditure, pending clearances for the key projects and general liquidity crunch impacted the execution of the company. Notably, current...

Q4FY19 top-line grew by 9% YoY supported by significant rise in real estate revenue to Rs224cr while PMC growth was subdued (3.6% YoY). EBITDA margin declined by 79bpsYoY to 7.5% due to rise in material cost and absence of high margin re-development revenue....

NBCC's topline grew 8.9% YoY to | 2,353.0 crore, lower than our estimate of | 2,432.4 crore. EBITDA margins contracted 80 bps YoY to 7.5% in Q4FY19 on account of higher un-allocable income in Q4FY18. PAT grew...

Strong execution but margin still an overhang... NBCC Ltd (NBCC) is a Navaratna Enterprise under Ministry of Urban development and their business verticals include: Project Management...

ICICI Securities Ltd | Retail Equity Research Net sales grew 25.0% YoY to | 1651.6 crore but were lower than our estimate of | 1764.3 crore. PMC division revenues grew 24.1% YoY...