Navratna PSU NBCC (India) Ltd has put out a three-phase development plan to finish 50,000 Supertech flats across 17 projects over the next three years, banking on its experience of revitalizing housing projects that have stagnated. Additionally, NBCC India has been given the go-ahead to create a Rs 15,000 crore township in Srinagar. In addition, the Amrapali project is well underway, with NBCC expecting to complete it by the end of FY25.
Nuvama Institutional Equities stated, "An improvement in order intake, execution, and margins along with traction in real estate monetization bode well for the company." Nonetheless, the brokerage kept its "Hold" recommendation on the multibagger stock, maintaining a target price of Rs 198.
The share was up 0.83 percent on Tuesday, trading at Rs 175.25 on the BSE. The stock has increased by 194% in the last year and 114% so far this year. According to Nuvama's NBCC India objective, there might be a 13% increase in value over the current market price.
According to the domestic brokerage, NBCC India has a healthy order book of Rs 81,300 crore and a book-to-bill ratio of 7.6 times, which positions it for future development. It expressed its optimism by pointing to significant order accretion, with year-to-date order wins at Rs19,800 crore compared to Rs23,500 crore in FY24, and improving real estate monetization.
"A strong real estate market is leading to better prospects for the company, as numerous PSUs and government entities seek to capitalize on their excess land holdings," it stated.
Compared to Rs 1,800 crore in FY24, the Amrapali project brought in Rs 370 crore in income in Q1FY25, according to Nuvama Institutional Equities. As of June 2024, 84% of the project's implementation, which will cost Rs 7,100 crore, has been finished. For Rs 3,650 crore, the business has sold 6,300 units under this project. Additionally, NBCC has been granted an extra FAR worth Rs 10,000 crore for the Amrapali project, which involves building 7,500 new apartments.
Two bids of Rs 1,700 crore are in the works, while projects worth Rs 1,400 crore are already under construction in Netaji Nagar. Sarojini Nagar is the site of ten phases of work totaling Rs 6,600 crore.
According to Nuvama, the business plans to move on with bulk sales as soon as it has an operational certificate. According to the statement, NBCC has already sold Rs 1,300 crore for this project.
According to the report, the federal government intends to allow the commercialization of 45 acres of land in Delhi, which would be carried out by NBCC, in order to collect Rs 20,000 crore to finance the ongoing renovation of seven government colonies.
