Kotak Securities is bullish on NBCC has recommended buy rating on the stock with a target price of Rs 229 in its research report dated March 14, 2018.
Kotak Securities' research report on NBCC
NBCC (India) Ltd, a Navratna PSU with major presence in project management consultancy space in building segment is focusing on execution of its order book. In the last 4 years (FY15-18E), the company has grown its order book by ~4x to ~Rs 800 bn which gives strong revenue growth visibility for the next 5 years. On the other hand, the revenue has grown less than 1.5x in the same period. The company is focusing on execution and expects strong revenue growth in FY19E as most of the redevelopment projects would contribute meaningfully in the year.
Outlook
We maintain our earnings estimates. The stock is presently trading at PE of 34.7x and 23.3x based on FY19E & FY20E EPS of Rs 5.6 and Rs 8.4 respectively. We upgrade our rating on the stock to BUY (from Accumulate earlier) after recent correction with unchanged target price of Rs 229.For all recommendations report, click here
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