National Buildings Construction Corporation Ltd. 3QFY2016 Results: Angel Broking

Views of Mr. Santosh Yellapu (Sr. Research Analyst - Infrastructure, Angel Broking) on NBCC 3QFY2016 Results:

Lower Other Income restricts PAT; Advise BUY post correction in the stock price

"NBCC reported 28.8% YoY increase in its 3QFY2016 top-line to INR 1,421cr, slightly below our expectation of INR 1,429cr. PMC & Real Estate segments (87% & 7.6% of 3QFY2016 sales respectively) reported an impressive 27.4% & 55.0% YoY top-line growth during the quarter. Shift in the business mix helped the company report 66bp YoY EBITDA margin expansion to 3.9%. NBCC reported PAT of INR 57cr, below our expectation of INR69cr, owing to lower than expected other income (at INR 38cr) and higher than expected tax rate (at 31.5%). Even though 3QFY2016 numbers were a miss, considering the huge re-development bid pipeline from Delhi, and order book of over INR 35,000cr (OB/LTM sales ratio of ~6.3x), we advise investors to use correction in the stock price as an opportunity to BUY."

Shares of NATIONAL BUILDINGS CONSTRUCTION CORPORATION LTD. was last trading in BSE at Rs.833.05 as compared to the previous close of Rs. 836.15. The total number of shares traded during the day was 53167 in over 3401 trades.

The stock hit an intraday high of Rs. 852.5 and intraday low of 810. The net turnover during the day was Rs. 44128219.

Source : Equity Bulls

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