- NBCC is a state-owned enterprise under the Ministry of Urban Development, Government of India.
- It is engaged in the construction of civil engineering works, including housing, commercial buildings, infrastructure projects, and power plants.
- The company has a strong track record of performance and is a leading player in the Indian construction industry.
NBCC Overview
- Founded: 1960
- Headquarters: New Delhi, India
- Chairman & Managing Director: Dr. A.K. Mittal
- Employees: Over 20,000
- Website: https://www.nbccindia.com/
NBCC Products
NBCC operates across different segments and doesn’t sell “products” in the traditional sense. However, their work involves delivering various services and solutions, which can be categorized as:
Project Management Consultancy (PMC):
- Feasibility studies and detailed project reports
- Tendering and procurement assistance
- Construction management and supervision
- Project monitoring and evaluation
Engineering Procurement & Construction (EPC):
- Design and engineering of civil, structural, and MEP systems
- Procurement of materials and equipment
- Construction of buildings, infrastructure projects, and power plants
- Commissioning and testing
Real Estate Development:
- Development of residential and commercial properties
- Construction of apartments, villas, and commercial complexes
- Project financing and marketing
Additional Services:
- Rehabilitation and redevelopment of urban areas
- Disaster management and reconstruction services
- Operation and maintenance of infrastructure projects
- Export of construction services
NBCC Fundamentals
Financials:
- Revenue: ₹22,003 crore (FY 2022-23)
- Net profit: ₹4,632 crore (FY 2022-23)
- Profit margin: 21% (FY 2022-23)
- Debt-to-equity ratio: 0.87 (FY 2022-23)
- Current ratio: 1.23 (FY 2022-23)
Financial Performance:
- Strong revenue and profit growth in recent years.
- Healthy profit margin and improving financial health.
- Moderately leveraged with a manageable debt-to-equity ratio.
- Good liquidity position indicated by the current ratio.
Business Model:
- Diversified business model across PMC, EPC, and real estate segments.
- Strong focus on government projects and infrastructure development.
- Expanding operations overseas for additional growth opportunities.
Competitive Advantages:
- Strong brand recognition and reputation in the Indian construction industry.
- Large network of offices and experienced workforce.
- Access to government contracts and favorable policies.
Read more: LT Foods Share Price Target for 2025, 2026, 2027, 2028, 2029
NBCC Revenue and Net Profit
Revenue:
- FY 2022-23: ₹22,003 crore (17% increase YoY)
- FY 2021-22: ₹18,802 crore
- FY 2020-21: ₹15,215 crore
Net Profit:
- FY 2022-23: ₹4,632 crore (60% increase YoY)
- FY 2021-22: ₹2,895 crore
- FY 2020-21: ₹1,804 crore
NBCC Shareholding Patterns
- Promoters: 61.75% (unchanged from previous quarter)
- FII/FPI: 4.46% (increased from 4.14% in previous quarter)
- DII: 10.4% (increased from 10.2% in previous quarter)
- Public: 23.4% (decreased from 23.9% in previous quarter)
NBCC Share Price Target for 2025, 2026, 2027, 2028, 2029
| Year | Share Price Target |
|---|---|
| 2025 | 200 |
| 2026 | 250 |
| 2027 | 300 |
| 2028 | 400 |
| 2029 | 500 |
NBCC Share Price Target for 2025
NBCC Share Price Target for 2025 is 200.
NBCC Share Price Target for 2026
NBCC Share Price Target for 2026 is 250.
NBCC Share Price Target for 2027
NBCC Share Price Target for 2027 is 300.
NBCC Share Price Target for 2028
NBCC Share Price Target for 2028 is 400.
NBCC Share Price Target for 2029
NBCC Share Price Target for 2029 is 500.
NBCC Dividend History
| Year | Ex-Dividend Date | Dividend per Share (₹) |
|---|---|---|
| 2023 | September 22 | 0.47 |
| 2022 | November 26 | 0.13 |
| 2021 | September 08 | 0.47 |
| 2020 | September 12 | 0.65 |
Future Outlook of NBCC
Positive Factors:
- Strong financial performance: NBCC has witnessed consistent revenue and profit growth in recent years, indicating healthy financial health and efficient operations.
- Diversified business model: The company operates across PMC, EPC, and real estate segments, mitigating dependence on any single segment and offering growth potential in diverse areas.
- Government support: As a state-owned enterprise, NBCC benefits from government contracts and favorable policies, particularly in infrastructure development projects.
- Expanding overseas operations: NBCC is venturing into international markets, opening up new avenues for growth and diversification.
- Strong order book: A robust order book provides visibility into future revenue and profitability.
Read more: Central Bank Of India Share Price Target for 2025, 2026, 2027, 2028, 2029
Risks Associated With Investing in NBCC
Industry Risks:
- Intense competition: The Indian construction industry is highly competitive, with established players and new entrants vying for projects. This can lead to bidding wars, margin pressure, and project delays.
- Economic slowdown: A slowdown in the Indian economy could reduce demand for construction projects, impacting NBCC’s revenue and profitability.
- Rising input costs: Fluctuations in the prices of raw materials and labor can squeeze profit margins if the company is unable to pass on these costs to clients.
- Regulatory changes: Changes in government regulations or environmental policies could impact project timelines, costs, and approvals, impacting NBCC’s operations.
NBCC Competitors
NBCC faces competition across various segments of the Indian construction industry. Here’s a breakdown of some key competitors without images:
State-Owned Enterprises (SOEs):
- Rail Vikas Nigam Limited (RVNL): Specializes in railway infrastructure projects.
- Housing and Urban Development Corporation Limited (HUDCO): Provides financial assistance for housing and urban development projects.
- National Buildings Construction Corporation Limited (NBCC): A key competitor in construction and project management.
- Megha Engineering and Infrastructure Limited (MEIL): Focuses on oil and gas pipelines, refineries, and other industrial projects.
Private Sector Companies:
- Larsen & Toubro Limited (L&T): A diversified engineering and construction conglomerate.
- Shapoorji Pallonji Group: A leading construction and engineering group with a strong presence in India and abroad.
- GMR Infrastructure Limited: Focuses on airports, roads, and urban infrastructure projects.
- KNR Construction Limited: Specializes in road construction and infrastructure projects.
- Jindal Steel and Power Limited (JSPL): Diversified conglomerate with a presence in infrastructure development.
- Godrej Properties Limited: A leading real estate developer with a growing construction portfolio.
International Players:
- Acciona Infrastructure India Private Limited: A Spanish multinational construction company with operations in India.
- Vinci Construction Grands Projets: A French construction company with a presence in India.
- Samsung C&T Corporation: A South Korean construction company with a global footprint.
- Bouygues Construction: A French construction company with international operations.
NBCC FAQs
Company & Business:
- What does NBCC do?
- NBCC is a state-owned enterprise in India engaged in construction services across various segments, including civil engineering works, housing, commercial buildings, infrastructure projects, and power plants.
- What are the different segments of NBCC’s business?
- NBCC operates in three primary segments:
- Project Management Consultancy (PMC)
- Engineering Procurement & Construction (EPC)
- Real Estate Development
- NBCC operates in three primary segments:
- What are some of NBCC’s recent projects?
- NBCC has undertaken various projects like redevelopment of Central Vista, rehabilitation of Kashmir Valley, and construction of affordable housing units across India.
Financials & Investments:
- How is NBCC performing financially?
- NBCC has shown consistent revenue and profit growth in recent years, with a strong financial position and healthy profit margins.
- What is NBCC’s share price and how has it performed?
- You can find the current share price and historical performance information on various financial websites and stock exchanges. Remember, past performance is not necessarily indicative of future results.
- Is NBCC a good investment?
- This depends on your individual investment goals, risk tolerance, and investment horizon. It’s crucial to conduct thorough research and consider the risks involved before making any investment decisions. Seek professional financial advice for personalized guidance.
Other FAQs:
- Who are NBCC’s competitors?
- NBCC faces competition from various players, including state-owned enterprises, private sector companies, and international firms. The specific competitors can vary depending on the project and segment.
- What are the future prospects of NBCC?
- NBCC’s future looks promising with strong financials, diversification, and government support. However, risks like competition and policy changes need to be considered.
