NBCC (India) Ltd – Government Ka Thekedaar, Shareholder Ka Dil Todne Wala?“Sarkari kaam aur share bazaar – dono patience maangte hain. Except NBCC has started delivering.”
📌 At a Glance
NBCC is a PSU construction giant, best known for redeveloping half of Delhi and promising to finish the other half… someday. Despite its sarkari DNA, it’s posted a 51% profit CAGR over 5 years, boasts a ₹1.2 lakh crore order book, and somehow still trades at a nosebleed P/E of 52. Welcome to the great Indian PSU re-rating party — BYOB (Bring Your Own Bricks).
1️⃣ Business Model – Government Contractor, But Fancy
NBCC’s operations are split into:
- Project Management Consultancy (PMC) – 91% of revenue
Government-sponsored projects, civil infra, universities, and even temple town makeovers. NBCC basically builds everything except shareholder wealth (well, until now). - EPC (Engineering, Procurement, Construction) – Where execution tries to happen on time.
- Real Estate – A slow-moving B-side to the PMC hits. Mostly redevelopment of sick PSU land banks.
🧱 Top clients include MoD, MoHUA, IITs, AIIMS, and state govts. If the tender says “Sarkar approved,” NBCC is probably bidding.
2️⃣ Financials – PSU Stock But Startup Valuation
| Metric | FY25 | YoY Change |
|---|---|---|
| Revenue | ₹12,039 Cr | +14% |
| Net Profit | ₹557 Cr | +34% |
| EPS | ₹2.00 | 👌 |
| Operating Margin | 5% | Rising |
| ROE | 26% | High AF |
| ROCE | 33% | 🔥 |
| Debt | ₹0 | Debt-Free |
📈 Compounded Profit Growth (5Y): 51% CAGR
📉 Cash from Ops (FY24): ₹73 Cr → (FY25): ₹657 Cr. That’s one hell of a working capital unlock.
3️⃣ Stock Performance – PSU Multibagger Club 💸
- 5Y Price CAGR: 49%
- 3Y Return: 83%
- Current Price: ₹117
- 52W High/Low: ₹140 / ₹71
A PSU that tripled in 3 years? Hell has frozen over.
(Or maybe Modi sarkar actually built something.)
4️⃣ Valuation – This Ain’t Cheap, Chief
- P/E: 52 → Higher than most real estate developers who actually own assets
- Book Value: ₹9.18 → P/B ~12.8x 😳
- Fair Value Range (EduEstimate): ₹70–90 Based on sustainable net profit of ₹450–600 Cr and applying a 20–25x multiple (generous for PSUs with 5% OPM).
So yes, it’s pricey AF… but welcome to India 2025, where even government contractors get treated like tech startups.
5️⃣ Growth Drivers – Orders, Orders Everywhere
- 🏗️ Order Book: ₹1.2 Lakh Cr (vs ₹12K Cr revenue — 10x coverage!)
- 🏛️ Smart Cities, Railways, Border Infra
- 🧱 Real Estate Revivals — Sick PSU redevelopment is a goldmine, slowly turning productive
- 📈 PMGSY & North-East Infra — Ongoing projects with consistent visibility
NBCC isn’t just building buildings — it’s quietly building shareholder confidence. Strange, right?
6️⃣ Risks – PSU Life Isn’t Easy
- 🐢 Execution Delays — Standard PSU problem. Bids awarded in FY20, projects completed in FY25
- 🧑⚖️ Govt Interference — Orders can be paused, scrapped, or “revised” overnight
- 📉 Valuation Bubble? — P/E > 50 for a construction PSU is borderline hallucination unless earnings double again
- 🧾 Receivables Cycle — Still over 90 days. Welcome to the Indian babu payment model.
7️⃣ Final Thoughts – NBCC: From Sarkari Sloth to Market Darling?
This stock went from a boring dividend PSU to an infrastructure multibagger.
But now at 52x earnings, you’re not betting on contracts — you’re betting that NBCC becomes the L&T of Government India.
Can it justify the hype? Maybe. But at this price, there’s zero margin for error — just like its project deadlines.
