Accumulate NBCC at a target of Rs 1,098: Angel Broking

Angel Broking has an ‘accumulate’ rating on NBCC. The brokerage has assigned 20x P/E multiple to the developer’s FY2018E EPS of Rs 55/share. The broking firm sees the stock hitting a high of Rs 1,098, suggesting around 14 per cent upside to the prevailing level.

In a note to its clients, the brokerage said, “Considering the reviving award activity environment, we expect NBCC to report approximately Rs 20,000cr of order inflows each year for FY2017-18E. Also, emerging opportunities in the redevelopment space, the government’s initiative of developing ‘Smart Cities’ and the company’s cash rich status should aid its growth,” it said.

The company is expected to report 27.9 per cent and 45.5 per cent top and bottom line CAGR during FY2016-18E, respectively.

“Given the bid pipeline and the company’s huge order book, we are convinced about the company’s earnings growth prospects over the next few years,” Angel Broking said.