IIFL Securities's Stock Idea: Buy Nbcc (India) with Target Rs 195

IIFL Securities recommends a "Buy" rating for NBCC (India), with a target price of Rs 195. The current market price stands at Rs 187.77. This suggests an upside potential of approximately 4%. The brokerage firm's analysis is based on the company's strong order book, government focus on infrastructure, and its healthy financial position. NBCC is a leading public sector construction company in India, with a strong track record and a diversified portfolio of projects.

About Nbcc (India):

NBCC (India) Limited is a state-owned diversified construction company in India. Established in 1960, NBCC provides engineering, procurement, and construction (EPC) services for a wide range of projects, including residential, commercial, industrial, infrastructure, and power. The company is a leading player in the real estate sector and has constructed over 200 million square feet of built-up area, including iconic landmarks like the Burj Khalifa and the India Gate complex. NBCC is dedicated to sustainable construction practices and holds various certifications for its commitment to environmental and social responsibility.

52 Week Price Trend:

NBCC India Limited (NBCC) is a government-owned construction company headquartered in New Delhi. Its current market price (CMP) stands at Rs 187.77, indicating a healthy growth since its 52-week low of Rs 30.95. However, it is still below its 52-week high of Rs 176.85. NBCC has a strong market presence and has been involved in several prestigious infrastructure projects in India. Its financial performance has been improving in recent quarters, with a rise in revenue and profit. Investors may consider NBCC for long-term investment potential, given its strong fundamentals and growth prospects in the infrastructure sector.

Stratzy's MOST Analysis:

Stratzy's MOST framework has assigned an AA- rating to NBCC, indicating medium fundamental risks. This assessment is based on NBCC's strong management, positive outlook, sound safety measures, and favorable trend in financial performance. The AA- rating suggests that NBCC has a well-managed, financially stable business model with a positive growth trajectory, although it may face some moderate risks in the future.

Company's Fundamentals:

NBCC (India), listed on the National Stock Exchange (NSE) under the symbol "NBCC," is currently trading at a Stock PE (Price-to-Earnings ratio) of 61.96. This indicates that the market values the company at 61.96 times its annual earnings per share. Additionally, the PB Ratio (Price-to-Book ratio) of 12.79 suggests that the market is valuing the company at 12.79 times its book value per share. Lastly, the Dividend Yield of 0.39% indicates that investors receive an annual dividend of 0.39% based on the current share price. These financial ratios provide insights into the company's valuation and profitability, helping investors make informed investment decisions.

Fundamental and Technical information provided in this blog were last updated on 27 Jul, 2024

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