Buy NBCC (India), target Rs 260: Sharekhan
Buy NBCC (India) Ltd. at a price target of Rs 260.0 .
By ETMarkets.com |
Sharekhan has a buy call on NBCC (India) with a target price of Rs 260.
The current market price of NBCC (India) is Rs 196.50.
Time period given by the brokerage firm is a year when NBCC (India) price can reach defined target.
"We have tweaked our earnings estimates for FY2018 and FY2019 due to the unexpected delay in approvals from local government bodies and clients. However, management stated that NBCC aims to tender Rs 10,000 crore of order for every six months in the next one year, which will garner revenue in Q4FY2018 and FY2019. Further, with better margin orders yet to be executed, we expect 41 per cent earnings CAGR from FY2018E-FY2020E. Backed by strong earnings visibility, a lean balance sheet, high return ratios and its quasi-monopoly position, we reiterate our Buy recommendation on NBCC and revise our price target (PT) to Rs 260 (rolled over fully on FY2020E)," Sharekhan said in a report.
The current market price of NBCC (India) is Rs 196.50.
Time period given by the brokerage firm is a year when NBCC (India) price can reach defined target.
"We have tweaked our earnings estimates for FY2018 and FY2019 due to the unexpected delay in approvals from local government bodies and clients. However, management stated that NBCC aims to tender Rs 10,000 crore of order for every six months in the next one year, which will garner revenue in Q4FY2018 and FY2019. Further, with better margin orders yet to be executed, we expect 41 per cent earnings CAGR from FY2018E-FY2020E. Backed by strong earnings visibility, a lean balance sheet, high return ratios and its quasi-monopoly position, we reiterate our Buy recommendation on NBCC and revise our price target (PT) to Rs 260 (rolled over fully on FY2020E)," Sharekhan said in a report.
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