NBCC Share Price Target 2022, 2023, 2024, 2025, and 2030

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  • Post last modified:02/04/2022

NBCC share price target 2022 and 2023: In this article, you will learn about NBCC share price target 2022 and 2023, along with the fundamentals and financials of the company.

For every investor, it is important to know about the company in which they are investing, to get the confidence to hold the stock for the long term. To make it clear to you, in this article we have mentioned NBCC share price target 2022 and 2023, along with the fundamentals of the company.

Also read: GTL Infra share price target 2022, 2025, and 2030.

NBCC: Company Profile

National Buildings Construction Corporation (NBCC) was incorporated in November 1960 as a wholly-owned Government of India undertaking under the erstwhile Ministry of Works, Housing & Supply, which is now known as the Ministry of Urban Development (MoUD).

NBCC (India) with its headquarters in Delhi, today, holds the status of Navratna CPSE and has emerged as the undisputed leader in the Construction Sector on the back of its capabilities, innovative approach, adherence to the highest standard of quality, timely delivery, and a dedicated workforce. 

NBCC’s areas of operation encompass three Primary Segments namely:

  • Project Management Consultancy (PMC): Executing landmark projects in diversified sectors as also Redevelopment Projects for Government.
  • Engineering Procurement & Construction (EPC): Working in a niche market and constructing Chimneys, Cooling Towers for Power Sector.
  • Real Estate Development: Developing Residential and Commercial inventories for Governments and the Public at large.

Share Holding Pattern

NBCC share price target 2022, 2023, 2024, 2025, and 2030

Revenue From Operations

NBCC share price target 2022, 2023, 2024, 2025, and 2030

Profit Before Tax

NBCC share price target 2022, 2023, 2024, 2025, and 2030

NBCC Share Price Target 2022

The financial year 20-21 started for NBCC with lots of challenges due to the spread of the Covid-19 pandemic and the company being in the construction industry; the impact was very high. The company faced an extreme shortage of labor at project sites due to which construction activities had to be suspended in almost all locations. The availability of materials was also scarce during the 1st and 2nd quarters of the year due to restrictions on the interstate movement of trucks.

The position started improving around Sept’20 and NBCC had adopted standard operating procedures duly incorporating social distancing, masks, and sanitization measures. With the intervention of the Government and following the unlock guidelines, the workforce has returned to the construction sites. The situation has normalized to a large extent as of date.

The total standalone income of the Company was Rs 5,120 crore during FY 20-21 and the total consolidated income stood at Rs 7,012 crore. The net profit after tax for the FY 20-21 has shot up to Rs 201.74 crore with an increase of 151% from the previous year, in spite of pandemic conditions due to cost-cutting measures adopted by the company.

The present order book of NBCC is worth around Rs 60,000 crore approx. Some of the major projects in progress are the Redevelopment of Nauroji Nagar, Sarojini Nagar, and Netaji Nagar, Amrapali Projects International Exhibition-cum- Convention Centre at Pragati Maidan New Delhi; IIT, Bhubaneswar; IIT Mandi; AIIMS Bilaspur; AIIMS Deoghar, IIM Vishakapatnam, IIM Sambalpur, IIM Ranchi, etc. NBCC has sold a 9 Lakh Sft Commercial built-up area in the World Trade Centre of Nauroji Nagar in New Delhi with a sales consideration of Rs 3692 crores. This will ease the cash flow for the ongoing re-development projects of MoHUA.

NBCC has secured orders worth Rs 3,389 Cr during FY 20-21 which includes the Development of various land parcels for Delhi Transport Corporation( DTC) valuing Rs 1000 crore; Additional work in NIT Patna Campus valuing Rs 500 crore; Natural Draught Cooling Tower ( NDCTs), Yadadari, Telangana valuing Rs 284 crore; Development work for District Mineral Foundation at Jajpur & Angul in Odisha valuing Rs 405 crore; Office building complex of Election Commission of India at Dwarka, New Delhi valuing Rs 150 crore, Construction of Hostels and Residences for IIT, BHU at Varanasi valuing Rs 147 crore among many other orders.

NBCC has also completed the site preparatory work for the installation of PSA Oxygen Plants at 14 locations on a pan India basis under the PM-CARES fund to cater to the oxygen requirement. NBCC has recently bagged the project of construction of a permanent campus of National Institute of Technology Srinagar in Uttarakhand valuing Rs 596 crore; various development work for OHPC in Odisha; additional work in an HQ office building for CBSE at Dwarka valuing Rs 150 crore, Construction of IT Towers in Jammu and Kashmir valuing Rs 100 crore.

Considering the strong order book of NBCC and the ease of Covid restrictions, construction companies will perform better in the coming years. NBCC share price target for 2022 is Rs 54.

NBCC share price target 2022
Rs 54

Also read: JP Power share price target 2022, 2025, and 2030.

NBCC Share Price Target 2023

NBCC always endeavors to execute projects with world-class technology and delivers these within a given time frame. The Company has consistently improved its execution capabilities with the adoption of the latest technology. It has been a leader in the construction sector.

NBCC is a debt-free and consistently profit-making Company. It is led by a professionally experienced senior management team supported with a large pool of highly motivated and skilled employees with diverse backgrounds ranging from finance, law, projects, engineering, architecture, HR, and IT over-arching expertise-areas from housing, to urban infrastructure to master plan to city development plans.

Its unique business model for the development of government colonies and its diverse exposure across businesses, segments, and geographies de-risks cyclical downturns, resulting in a steady growth trajectory. NBCC takes pride in creating new generation workspaces that match global standards.

The Company has the distinction of developing office projects at par with the best in the world. It has become a partner of choice for many government and non-government organizations. The construction industry has been witness to a strong growth wave powered by large spending on housing, road, water supply, urban transformation, etc. With the total investment in infrastructure estimated to increase significantly, the future outlook for NBCC is both positive and optimistic. NBCC share price target for 2023 is Rs 68.

NBCC share price target 2023
Rs 68

Also read: Tata Chemicals share price target 2022, 2025, and 2030.

NBCC Share Price Target 2024

NBCC’s unique business model as well as its redevelopment projects, proven execution with respect to quality adherence and time-bound delivery as well as innovation-led leadership create substantial differentiation and the Company is quite confident to hold its forte.

The potential sanctions under various projects of the Central Government such as Pradhan Mantri Awas Yojna (PMAY – urban and rural), Smart Cities, AMRUT, HRIDAY, and such other schemes may create enormous opportunities for NBCC. The huge infrastructure gaps in the country will increase the demand for the construction sector. Further, rapid population growth would lead to an increased pace of urbanization

NBCC has given a 36% return in the past 1 year. NBCC is maintaining a healthy ROCE of 25.7% over the past 3 years, and NBCC is a debt-free company.

NBCC has an efficient cash conversion cycle of just 87 days and trading at a PEG ratio of just 0.21. NBCC share price target for 2024 is Rs 77.

NBCC share price target 2023
Rs 77

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NBCC Share Price Target 2025

We believe that owing to healthy balance sheets, access to capital, and many unlisted, weaker developers being shunted out of the market, the market share of large organized developers is set to grow further in the next 2-3 years. Most developers in the listed space have aggressive launch plans from H2FY22 and are looking to grow at a double-digit sales value CAGR over the next 2-3 years which would likely lead to market share gains assuming that industry size remains stagnant. We estimate the pan-Indian residential market share for our coverage universe to grow from 25% in FY21 to 31% in FY24E.

While prices have remained stagnant over the last five years, we believe that prices may see a single-digit rise over the next 2-3 years annually as inventory levels have stabilized and the Indian residential real estate market has undergone clear signs of consolidation with the market share of larger, organized developers having grown to over 24% in FY21 of Tier 1 residential sales value vs. ~11% in FY17. With an increase in input costs of 5-10% over the last 12 months, there is a case for a price increase and we have already seen marginal price hikes of 2-5% by developers in 9MFY22.

In the medium term, we believe that single-digit price hikes are sustainable and healthy as it protects margins and also encourage developers to launch new projects, and give confidence to buyers to purchase a new home. Hence, while we are believers in an upcycle for the residential sector in India, we are of the view that a sustained single-digit sales price CAGR is beneficial for all stakeholders rather than a supercycle similar to FY03-07 where residential prices went up by 3-4x in a short period. By considering all these factors, NBCC share price target for 2025 is Rs 94.

NBCC share price target 2025
Rs 94

Also read: SAIL share price target 2022, 2025, and 2030.

NBCC Share Price Target 2030

After a boom in retail space demand during 2003-07, the Lehman crisis upset the apple cart with absorption plunging; this led to vacancies rising sharply between CY07-11. Industry consolidation post CY11 led to demand outstripping completions; consequently, vacancies declined steadily between CY11-19. The covid-19 crisis has led to demand falling off a cliff since the lockdown restrictions imposed on malls have been much more severe when compared with the high street.

Developers have deferred their development plans and slowed down construction of existing malls; nevertheless, vacancy levels are rising again (up 50- 530bps YoY ). Like the housing space, there is a clear demarcation among mall developers also. Malls with smaller sizes are worse off when compared with big malls (having more than 0.5msf of GLA ).

Domestic consumption in India (measured as Private final consumption expenditure – PFCE) is estimated to touch USD 2.2 trillion by FY25, per Technopak Analysis. The consumption expenditure in India clocked an annual growth rate of ~14% between FY05-19, and ~13% prior to that (FY91-05). While in the short term, consumption is expected to suffer a setback due to the pandemic, it is estimated to grow at ~10.5% during the FY21-25 period.

India’s retail industry ranks 4th in the world in terms of size. It accounts for 10% of India’s GDP, 40% of India’s consumption, and employs ~46mn people, contributing 8% to the overall employment in the country. After a boom in retail space demand during 2003-07, the Lehman crisis upset the apple cart with absorption plunging; this led to vacancies rising sharply between CY07-11.

In FY20, India’s retail basket was approximately 48.5% of its private consumption and it is expected to maintain this share in private consumption for the next five years. The retail market in major Indian states that contribute to more than 80% of India’s retail is expected to grow at a CAGR of more than 9% over FY21-25. By considering all these factors, NBCC share price target for 2030 is Rs 360.

NBCC share price target 2030
Rs 360

NBCC Share Price Target 2022, 2023, 2024, 2025, and 2030

YearNBCC Share Price Target
NBCC share price target 2022Rs 54
NBCC share price target 2023Rs 68
NBCC share price target 2024Rs 77
NBCC share price target 2025Rs 94
NBCC share price target 2030Rs 360

Frequently Asked Questions

Is NBCC good for long term?

Yes, NBCC is good for the long term and the construction segment will grow a lot in the coming years, but there are other good companies, which are better than NBCC in terms of performance to hold for the long term.

What is the future of NBCC share?

The construction industry has been witness to a strong growth wave powered by large spending on housing, road, water supply, urban transformation, etc. With the total investment in infrastructure estimated to increase significantly, the future outlook for NBCC is both positive and optimistic.

Is NBCC a good stock?

Yes, NBCC is a good stock. But if you want to buy a stock from the real estate sector, I would suggest you to invest in any other company with good financials and fundamentals. It’s better to avoid NBCC if you want to invest for the long term.

What is the future of NBCC share price?

NBCC share price target for 2022 is Rs 54, NBCC share price target for 2023 is Rs 68, NBCC share price target for 2024 is Rs 77, NBCC share price target for 2025 is Rs 94, and NBCC share price target for 2030 is Rs 360.

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