A shift in focus from order accretion to order execution has put the spotlight on NBCC.
The company’s fast-growing order book at Rs 75,000-80,000 crore (about 13 times its FY17 revenue) is impressive and has been a key driver of its stock and premium valuations. However, for sustenance of valuations and gains on the bourses, faster execution of orders is crucial. At Rs 220.75, the stock is currently trading at 43 times its FY18 earnings estimates.
The central government-owned company, which undertakes project management consultancy (PMC), real estate development and EPC (engineering, procurement and construction) contracting, had witnessed a flat revenue growth