NBCC shares up 19% since October 23; worth buying? 

NBCC (India) Ltd shares received a 'Buy' rating from Nuvama Institutional Equities amid a strong order book, healthy margins and significant real estate monetisation potential. The stock is up 19 per cent from its October 23 lows.

In a note, the domestic brokerage said NBCC's book-to-bill ratio of 9.5 times remained robust, noting that 53 per cent of its orders pertain to ‘self-revenue generation projects’, where the pace of real estate monetisation will determine execution.

NBCC recently achieved a complete sell-off of residential apartments in Africa Avenue for Rs 5,200 crore and plans to monetise units in Vinayak Mandir Marg and Scindia Marg worth Rs 8,000-10,000 crore in Q4. Nuvama said the Gurugram Sector-37D (Rs 2,300 crore GDV) and Ghitorni (GDV of Rs 8,500 crore) residential projects are set to be launched in Q4FY27 and Q1FY28, respectively.

"In Q3FY27, the company has sold two land parcels in Jaipur for Rs 430 crore and expects to sell two more land parcels (one each in Meerut and Ghaziabad) in Q4FY27," the brokerage said.

Factoring in the improvement in margins, Nuvama revised its FY27 and FY28 EPS estimates upwards by 16 per cent/11 per cent/8 per cent.

"However, we are slashing the target PE multiple to 35 times from 45 times considering persistent delays in real estate monetisation, which is critical for execution of ‘self-revenue generation’ projects. Maintain ‘BUY’ with a revised TP of INR120 (from INR133) as we roll forward valuations to Q2FY29E," it said.