Views on National Building Construction Corporation 4QFY2016 Results: Angel Broking

views of Mr. Santosh Yellapu (Sr. Equity Research Analyst - Infrastructure, Angel Broking) on National Building Construction Corporation 4QFY2016 Results:

PAT disappoints us; Use any correction in the stock price as buying opportunity

"NBCC reported 38.8% YoY increase in its top-line to INR 2,251cr, ahead of our expectation of INR 2,130cr. PMC & EPC segments (91.8% & 5.8% of 4QFY2016 sales respectively) reported an impressive 45.6% & 46.9% YoY top-line growth during the quarter. Shift in the business mix led the company report 324bp YoY EBITDA margin decline to 5.3%, which was disappointing. Poor operating performance led NBCC report PAT of INR 141, against our expectation of INR 186cr. Even though 4QFY2016 PAT numbers were a miss, considering 20,000-25,000 re-development bid pipeline from Delhi (to be awarded in next 2-3 months), and order book of over INR 37,000cr (OB/LTM sales ratio of ~6.5x), we advise investors to use every correction in the stock price as an opportunity to BUY."

Shares of NATIONAL BUILDINGS CONSTRUCTION CORPORATION LTD. was last trading in BSE at Rs.196.15 as compared to the previous close of Rs. 971.45. The total number of shares traded during the day was 237398 in over 4767 trades.

The stock hit an intraday high of Rs. 199.9 and intraday low of 193. The net turnover during the day was Rs. 46764978.

Source : Equity Bulls

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