🏠 From Delhi Colonies to ₹34,000 Cr Valuation
NBCC (India) Ltd isn’t your typical startup-turned-multibagger story. It’s a PSU. A sarkari beast. Yet over the last 5 years, it has quietly built more than just buildings — it built investor wealth.
Whether it’s revamping old government colonies or taking over stuck Amrapali projects, NBCC has been the government’s go-to infra arm.
Let’s blueprint the last 5 years of this construction commander-in-chief.
📈 At a Glance (FY25 Snapshot)
| Metric | Value |
|---|---|
| CMP (as of Jun 5) | ₹127.04 |
| Market Cap | ₹34,300 Cr |
| P/E Ratio (TTM) | 63.4x |
| PB Ratio | 15.4x |
| 1Y Return | +40.5% |
| 3M Return | +70% |
| OPM (TTM) | 5.2% |
| ROE | 21.8% |
| Rating | ⭐ Expensive Star |
🏢 What Does NBCC Actually Do?
- Core Strength: Project Management Consultancy (PMC) – contributes 90%+ of revenue
- Other Segments: Real Estate + Engineering Procurement & Construction (EPC)
- Key Projects:
- Redevelopment of govt colonies (Nauroji Nagar, Netaji Nagar, etc.)
- AIIMS campuses
- Stalled Amrapali housing takeover
- Hospitals, educational institutions, office spaces
Basically, if it’s government-funded and made of concrete, NBCC’s probably involved.
📊 5-Year Revenue & Profit Growth (Consolidated)
| FY | Revenue (₹ Cr) | Net Profit (₹ Cr) |
| 2020 | ~7,000 | ~160 |
| 2021 | ~5,200 | ~100 |
| 2022 | ~6,300 | ~120 |
| 2023 | ~8,400 | ~240 |
| 2024 | ~11,700 | ~400 |
| 2025 | 13,307 (TTM) | 541.1 (FY25 PAT) |
Not exactly a tech unicorn, but for a PSU in construction? That’s serious compounding.
📏 Key Quarterly Highlights (Mar 2025)
| Metric | Value | YoY Growth |
| Revenue | ₹4,701 Cr | +15.3% |
| Net Profit | ₹176 Cr | +29.3% |
| OPM | 6.25% | Up YOY |
| EPS (Adj.) | ~2.7 | On track |
💼 Key Managerial Personnel
- K P Mahadevaswamy – Chairman & MD (₹1.02 Cr comp)
- Saleem Ahmad – Director (Projects)
- Sunil Kumar Pandey – CGM (Engineering)
Despite being a PSU, the salaries here are lean. Which is rare in both bureaucracy and construction.
🧱 SWOT Snapshot (Trendlyne)
Strengths:
- Government-backed contracts
- Zero bankruptcy risk
- Strong quarterly performance (EPS + Revenue)
Weaknesses:
- Thin OPM (5-6%)
- Overvalued (P/E 63x)
- Execution delays possible
Opportunities:
- ₹10,000 Cr+ worth of housing & infra redevelopment pipeline
- Real estate monetisation of govt land
Threats:
- Inflation in raw materials (cement, steel)
- Bureaucratic delays & approvals
🤯 EduInvesting Take
NBCC is the classic PSU paradox:
- It’s boring until it’s not.
- It delivers mid-single digit margins, but with scale so massive that profits still roar.
In the last 5 years:
- PAT grew from ₹100 Cr → ₹540 Cr
- ROE now stands at 21.8%
- Stock up 40% YoY, 70% in just 3 months
Yet the P/E at 63x makes us pause. This is priced like a SaaS startup, not a Delhi-based PSU building hospitals.
🔮 Fair Value Range (FY26E Projection)
- Assuming FY26 PAT of ₹675 Cr
- Target P/E range: 25–30x
- Fair Value Range: ₹115 – ₹138/share
- CMP: ₹127 → Near full valuation
💪 Final Word
NBCC is not for thrill-seekers. It’s a steady compounder, occasionally blessed with political tailwinds and PSU rerating cycles.
Right now, the market is front-running FY26 optimism. But long-term? NBCC is building real value — literally.
Author: Prashant Marathe
Date: 6 June 2025
Tags: NBCC India, PSU stocks, 5-year recap, construction sector, government infra, urban redevelopment
