Q3FY21 Company Update - NBCC Ltd - ICICI Direct

NBCC witnessed a decent recovery in the overall performance in Q3FY21 YoY and QoQ but is still far away from its normalised show of FY17, FY18. During Q3FY21, consolidated revenue improved 9% YoY (to Rs. 2,103.6 crore) largely driven by a pick-up in execution seen in PMC (up 10.7% YoY; contribution: 94.7%) and real estate divisions (revenue doubled; contribution: 1.5%). EBITDA margin was up 169 bps YoY at 3%. At the net level, healthy operating show coupled with lower tax outgo translated to doubling of PAT to Rs. 94 crore.

Valuation & Outlook

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 maintain HOLD rating with a TP of Rs. 35/share (earlier Rs. 37).

For details, click on the link below: https://www.icicidirect.com/mailimages/IDirect_NBCC_CoUpdate_Feb21.pdf

Shares of NBCC (India) Ltd was last trading in BSE at Rs.36.8 as compared to the previous close of Rs. 32.25. The total number of shares traded during the day was 5194864 in over 13747 trades.

The stock hit an intraday high of Rs. 37.7 and intraday low of 32.25. The net turnover during the day was Rs. 185780761.

Source : Equity Bulls

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