NBCC stock: With construction gaining pace, earnings will increase

The company's order book at Rs 800 billion has grown fourfold in the 2015-18 period

NBCC has seen its market capitalisation erode by almost a third since its share price hit new highs in November last year. A strong and growing order book was the key reason for the rally, leading the stock to trade at rich valuations. But, as execution didn’t keep pace, the stock corrected, analysts said. They said reports of alleged corruption against the company’s top management also led to an overhang.
 
However, after the steep correction, valuations have become reasonable. But more importantly, execution of projects is gaining pace and should lead to higher revenues.
 
Analysts at Kotak Securities,