17
May 17, 2016 Result Update ICICI Securities Ltd | Retail Equity Research Steady quarter; growth prospects intact!!! NBCC’s topline grew 25.9% YoY to | 2241.2 crore in line with our estimate of | 2222.6 crore. Revenues were mainly boosted by PMC division, which grew robustly at 45.1% YoY to | 2059.9 (vs. our expectation of | 1866.4 crore) The EBITDA margin contracted 140 bps YoY to 7.8%. There were employee benefit expenses on account of post retirement medical benefits on an actuarial basis aggregating | 3.4 crore. Adjusting for this, it was at 7.9% and it was in line with our estimate of 8.0%. The EBITDA margin contraction was mainly on account of a 150 bps decline in EBIT margin of the PMC division (7.8% in Q4FY16 vs. 9.3% in Q4FY15) The bottomline grew moderately at 3.5% YoY to | 138.7 crore in line with our expectation of | 140.7 crore Order book continues to tick up… NBCC witnessed strong order inflows of ~| 17517 crore in FY16. Its current orderbook is strong at | 37,000 crore, 6.4x TTM construction revenues, providing strong revenue visibility. The orderbook consist of ~85% from PMC, ~10% from real estate and ~4-5% from EPC division. The management expects approvals for redevelopment of three old colonies worth ~| 25000 crore to come from government by July, 2016. Further, NBCC will also have to make an equity investment of ~| 300-500 crore in these for the first six months. Given the strong orderbook, huge opportunities, we expect its topline, bottomline to grow at a CAGR of 38.1%/ 36.6% in FY16-18E to | 10968.0 crore/ | 576.3 crore, respectively. Cancels plan to raise funds via FPO route… Last year, the board of NBCC had approved the FPO of 10% of post issue equity share capital for augmenting its resources to fund its redevelopment projects, subject to government approval. However, now the management has cancelled its plan to raise money via this route. Nevertheless, going ahead, the government can dilute its stake in the company, which is at 90%. Further, NBCC announced takeover of Hindustan Steelworks Construction (HSCL). It is in final stages, which should be completed in FY17E. HSCL is a Kolkata based PSU with orderbook of | 8200 crore and topline of | 1520 crore in FY15. Its loans would be waived off once NBCC takes it over. It will be a subsidiary of NBCC with 51% stake and will have to invest ~| 120-150 crore in the deal. To be key beneficiary of government initiatives… NBCC will be a key beneficiary of the government’s ambitious schemes like Housing for all and Smart Cities mission aimed at urban development. Further, NBCC is already implementing a few smart townships like Kidwai Nagar and New Moti Bagh. It is looking to provide an all-round smart city solution including both, construction and technical (IT/Electronic) services for which it had tied up with IBM and a Malaysian JV firm. Long term story remains intact; maintain BUY… We continue to remain positive on NBCC’s business model given the huge set of opportunities in the redevelopment space and its cash rich balance sheet. We expect revenues, earnings to grow at a CAGR of 38.1%/36.6%, respectively, in FY16-18E. Given the change in management plans, we have now removed 10% equity dilution from our valuation. Hence, we maintain our BUY rating on NBCC with a revised SOTP based target price of | 1140 (implying 23.7x FY18 EPS). NBCC Ltd (NBCC) | 987 Rating matrix Rating : Buy Target : | 1140 Target Period : 12 months Potential Upside : 16% What’s changed? Target Changed from | 1100 to | 1140 EPS FY17E Changed from | 29.9 to | 30.3 EPS FY18E Introduced at | 48.0 Rating Unchanged Quarterly performance Q4FY16 Q4FY15 YoY (%) Q3FY16 QoQ (%) Revenue 2,241.2 1,780.3 25.9 1,421.1 57.7 EBITDA 178.9 165.5 8.1 61.5 191.0 EBITDA (%) 7.8 9.2 -140 bps 4.3 346 bps PAT 138.7 134.0 3.5 59.6 132.7 Key financials | Crore FY15 FY16E FY17E FY18E Net Sales 4,621.0 5,749.2 7,336.0 10,968.0 EBITDA 287.0 346.2 431.5 759.8 Net Profit 277.3 308.8 363.7 576.3 EPS (|) 23.1 25.7 30.3 48.0 Valuation summary (x) FY15 FY16E FY17E FY18E P/E 42.7 38.4 32.6 20.6 Target P/E 49.3 44.3 37.6 23.7 EV / EBITDA 37.1 30.6 25.8 15.6 P/BV 8.9 8.0 7.0 6.0 RoNW (%) 20.9 20.7 21.6 29.0 RoCE (%) 32.0 31.2 33.1 44.6 Stock data Particular Amount ( | crore) Market Capitalization 11,844.0 Total Debt 0.0 Cash 1,054.3 EV 10,789.7 52 week H/L (|) 1215 / 707 Equity capital 120.0 Face value | 10 Price performance Return % 1M 3M 6M 12M NCC 1.7 27.7 (3.8) (20.6) NBCC (0.5) 17.2 10.1 28.7 Simplex Infra 9.2 14.9 (15.4) (33.7) Research Analyst Deepak Purswani, CFA deepak,[email protected] Vaibhav Shah [email protected]

May 17, 2016 Rating matrix NBCC Ltd (NBCC) Rating : Buy …content.icicidirect.com/mailimages/IDirect_NBCCLtd_Q4FY... · 2016-05-17 · Steady quarter; growth prospects intact!!!

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Page 1: May 17, 2016 Rating matrix NBCC Ltd (NBCC) Rating : Buy …content.icicidirect.com/mailimages/IDirect_NBCCLtd_Q4FY... · 2016-05-17 · Steady quarter; growth prospects intact!!!

May 17, 2016

Result Update

ICICI Securities Ltd | Retail Equity Research

Steady quarter; growth prospects intact!!! • NBCC’s topline grew 25.9% YoY to | 2241.2 crore in line with our

estimate of | 2222.6 crore. Revenues were mainly boosted by PMC division, which grew robustly at 45.1% YoY to | 2059.9 (vs. our expectation of | 1866.4 crore)

• The EBITDA margin contracted 140 bps YoY to 7.8%. There were employee benefit expenses on account of post retirement medical benefits on an actuarial basis aggregating | 3.4 crore. Adjusting for this, it was at 7.9% and it was in line with our estimate of 8.0%. The EBITDA margin contraction was mainly on account of a 150 bps decline in EBIT margin of the PMC division (7.8% in Q4FY16 vs. 9.3% in Q4FY15)

• The bottomline grew moderately at 3.5% YoY to | 138.7 crore in line with our expectation of | 140.7 crore

Order book continues to tick up… NBCC witnessed strong order inflows of ~| 17517 crore in FY16. Its current orderbook is strong at | 37,000 crore, 6.4x TTM construction revenues, providing strong revenue visibility. The orderbook consist of ~85% from PMC, ~10% from real estate and ~4-5% from EPC division. The management expects approvals for redevelopment of three old colonies worth ~| 25000 crore to come from government by July, 2016. Further, NBCC will also have to make an equity investment of ~| 300-500 crore in these for the first six months. Given the strong orderbook, huge opportunities, we expect its topline, bottomline to grow at a CAGR of 38.1%/ 36.6% in FY16-18E to | 10968.0 crore/ | 576.3 crore, respectively. Cancels plan to raise funds via FPO route… Last year, the board of NBCC had approved the FPO of 10% of post issue equity share capital for augmenting its resources to fund its redevelopment projects, subject to government approval. However, now the management has cancelled its plan to raise money via this route. Nevertheless, going ahead, the government can dilute its stake in the company, which is at 90%. Further, NBCC announced takeover of Hindustan Steelworks Construction (HSCL). It is in final stages, which should be completed in FY17E. HSCL is a Kolkata based PSU with orderbook of | 8200 crore and topline of | 1520 crore in FY15. Its loans would be waived off once NBCC takes it over. It will be a subsidiary of NBCC with 51% stake and will have to invest ~| 120-150 crore in the deal.

To be key beneficiary of government initiatives… NBCC will be a key beneficiary of the government’s ambitious schemes like Housing for all and Smart Cities mission aimed at urban development. Further, NBCC is already implementing a few smart townships like Kidwai Nagar and New Moti Bagh. It is looking to provide an all-round smart city solution including both, construction and technical (IT/Electronic) services for which it had tied up with IBM and a Malaysian JV firm. Long term story remains intact; maintain BUY… We continue to remain positive on NBCC’s business model given the huge set of opportunities in the redevelopment space and its cash rich balance sheet. We expect revenues, earnings to grow at a CAGR of 38.1%/36.6%, respectively, in FY16-18E. Given the change in management plans, we have now removed 10% equity dilution from our valuation. Hence, we maintain our BUY rating on NBCC with a revised SOTP based target price of | 1140 (implying 23.7x FY18 EPS).

NBCC Ltd (NBCC) | 987 Rating matrix

Rating : BuyTarget : | 1140Target Period : 12 monthsPotential Upside : 16%

What’s changed? Target Changed from | 1100 to | 1140EPS FY17E Changed from | 29.9 to | 30.3EPS FY18E Introduced at | 48.0Rating Unchanged

Quarterly performance Q4FY16 Q4FY15 YoY (%) Q3FY16 QoQ (%)

Revenue 2,241.2 1,780.3 25.9 1,421.1 57.7EBITDA 178.9 165.5 8.1 61.5 191.0EBITDA (%) 7.8 9.2 -140 bps 4.3 346 bpsPAT 138.7 134.0 3.5 59.6 132.7 Key financials

| Crore FY15 FY16E FY17E FY18ENet Sales 4,621.0 5,749.2 7,336.0 10,968.0 EBITDA 287.0 346.2 431.5 759.8 Net Profit 277.3 308.8 363.7 576.3 EPS (|) 23.1 25.7 30.3 48.0

Valuation summary (x) FY15 FY16E FY17E FY18EP/E 42.7 38.4 32.6 20.6 Target P/E 49.3 44.3 37.6 23.7 EV / EBITDA 37.1 30.6 25.8 15.6 P/BV 8.9 8.0 7.0 6.0 RoNW (%) 20.9 20.7 21.6 29.0 RoCE (%) 32.0 31.2 33.1 44.6

Stock data Particular Amount ( | crore)Market Capitalization 11,844.0Total Debt 0.0Cash 1,054.3EV 10,789.752 week H/L (|) 1215 / 707Equity capital 120.0Face value | 10 Price performance

Return % 1M 3M 6M 12M

NCC 1.7 27.7 (3.8) (20.6)

NBCC (0.5) 17.2 10.1 28.7

Simplex Infra 9.2 14.9 (15.4) (33.7) Research Analyst

Deepak Purswani, CFA deepak,[email protected] Vaibhav Shah [email protected]

Page 2: May 17, 2016 Rating matrix NBCC Ltd (NBCC) Rating : Buy …content.icicidirect.com/mailimages/IDirect_NBCCLtd_Q4FY... · 2016-05-17 · Steady quarter; growth prospects intact!!!

Page 2ICICI Securities Ltd | Retail Equity Research

Variance analysis

Q4FY16 Q4FY16E Q4FY15 YoY(%) Q3FY16 QoQ(%) CommentsNet Sales 2,241.2 2,222.6 1,780.3 25.9 1,421.1 57.7 Topline grew 25.9% YoY to | 2241.2 crore and was in line with our estimate

of | 2222.6 crore. Revenues were mainly boosted by PMC division, which grew robustly at 45.1% YoY to | 2059.9 crore

Other Income 31.9 38.2 35.3 -9.7 34.2 -6.8Material Consumed 188.5 19.7 107.8 74.8 12.6 1,393.6Changes in Inventories of WIP -237.8 32.2 62.6 -480.1 20.6 -1,253.2Expenditure in Piece rate Work 2,083.3 1,970.1 1,408.5 47.9 1,261.1 65.2Employee Benefit Expenses 52.0 83.0 47.0 10.6 53.1 -2.1Other Expenses 38.4 26.8 15.0 156.6 17.1 124.2EBITDA 178.9 178.1 165.5 8.1 61.5 191.0EBITDA Margin (%) 7.8 8.0 9.2 -140 bps 4.3 346 bps The margin contraction was on account of a 150 bps decline in EBIT margin

of the PMC division (7.8% in Q4FY16 vs. 9.3% in Q4FY15)Depreciation 0.6 0.7 0.5 35.9 0.5 15.2Interest 14.0 11.5 8.7 NM 9.9 NMPBT 196.2 204.1 191.6 2.4 85.2 130.1Taxes 57.5 63.4 57.7 -0.4 25.6 124.2PAT 138.7 140.7 134.0 3.5 59.6 132.7 Bottomline grew 3.5% YoY to | 138.7 crore and was in line with our

expectation of | 140.7 crore

Source: Company, ICICIdirect.com Research

Change in estimates

Particulars FY18EOld New % Change Introduced Comments

Revenue 8,006.8 7,336.0 -8.4 10,968.0EBITDA 469.9 431.5 -8.2 759.8EBITDA Margin 5.9 5.8 -8.3bps 6.9PAT 398.6 363.7 -8.8 576.3EPS 29.9 30.3 1.4 48.0 We have lowered our estimates to reflect lower-than-expected performance in real

estate division

FY17E

Source: Company, ICICIdirect.com Research

Assumptions for PMC division

Current Earlier Introduced Comments| crore FY16 FY17E FY17E FY18EOrder inflow 19,418 15,000 25,000 17,000 We have revised our assumption upward to reflect better orderinflow

Order Backlog 52,000 78,832 68,292 83,464Average Execution 15.6% 11.5% 12.3% 14.5%

Source: Company, ICICIdirect.com Research

Page 3: May 17, 2016 Rating matrix NBCC Ltd (NBCC) Rating : Buy …content.icicidirect.com/mailimages/IDirect_NBCCLtd_Q4FY... · 2016-05-17 · Steady quarter; growth prospects intact!!!

Page 3ICICI Securities Ltd | Retail Equity Research

Company Analysis Strong order book and consistent order inflow…

NBCC witnessed order inflows of ~| 34000 crore (including redevelopment opportunities worth | 15000 crore) in FY16 taking its orderbook to | 52,000 crore (including redevelopment opportunities), 8.9x TTM revenues, providing strong revenue visibility, going forward. The orderbook consists of ~54% from PMC, 36% from redevelopment, 7% from real estate and 3% from EPC division. Going forward, the management has guided that order inflows are set to increase substantially primarily due to opportunities arising from redevelopment of old colonies in New Delhi worth ~| 25000 crore. Going ahead, we have built in healthy orderbook of ~| 78832crore, ~| 83464 crore in FY17E, FY18E respectively on the back of healthy opportunities in redevelopment segment.

Exhibit 2: Strong order book and consistent order inflow…

1768 2692 3430 4233 6986 7729 7658 816212163 15427

20000

52000

78832

83464

2.3 2.2 2.3 2.13.4

2.6 2.4 2.4

3.8 3.8 4.3

7.68.9

10.6

0100002000030000400005000060000700008000090000

FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17E FY18E

(| c

rore

)

0.0

2.0

4.0

6.0

8.0

10.0

12.0

(x)

Order Book Order Book to Bill ratio

Source: Company, ICICIdirect.com Research

PMC…economic moat for NBCC!!!

The project management consultancy (PMC) division is the cash cow business for NBCC. Its PWO status helps in getting contract on a nomination basis. As a result, NBCC gets 70-80% contract on a nomination basis from various ministries. In Q4FY16, the PMC division revenues grew 45.1% YoY to | 2059.9 crore.

Exhibit 3: Revenue contribution from PMC division

1780

.3

1147

.3

1116

.6

1421

.1

2241

.2

1420

.1

970.

0

897.

7

1239

.9

2059

.9

8580

87

80

92

0.0

500.0

1000.0

1500.0

2000.0

Q4FY15 Q1FY16 Q2FY16 Q3FY16 Q4FY16

(| c

rore

)

60

70

80

90

100

(%)

Total Revenue Revenue from PMC % Contribution of PMC

8

Source: Company, ICICIdirect.com, Research

Exhibit 4: EBIT and EBIT margin from PMC division

132.

1

47.4

67.5

90.2

161.

0

9.3

4.9

7.5 7.37.8

0.0

50.0

100.0

150.0

200.0

Q4FY15 Q1FY16 Q2FY16 Q3FY16 Q4FY16

(| c

rore

)

2.0

4.0

6.0

8.0

10.0

(%)

EBIT from PMC EBIT Margin of PMC

Source: Company, ICICIdirect.com, Research

Page 4: May 17, 2016 Rating matrix NBCC Ltd (NBCC) Rating : Buy …content.icicidirect.com/mailimages/IDirect_NBCCLtd_Q4FY... · 2016-05-17 · Steady quarter; growth prospects intact!!!

Page 4ICICI Securities Ltd | Retail Equity Research

Working capital & cash flows - best in industry…

NBCC has a unique advantage of generating cost-free float from its PMC division where it is able to get revenue upfront from clients. On the other hand, it gets an extended credit period from contractors. Consequently, this has led to a negative working capital cycle and healthy CFO and FCFF over the years. It is one of the biggest economic moats of NBCC compared to its peers in the industry. In FY14, NBCC enhanced its land bank to expand its real estate business, which led to an increase in the inventory, in turn, leading to a higher working capital and lower CFO compared to those in the previous year. Hence, it earns from both operations as well as float.

Exhibit 5: Robust working capital management

Working Capital Requirement

-346.9-500.9 -550.8 -607.2 -613.9 -678.0 -717.7

-891.3 -820.6

-272.1

17.3 67.3

287.2

784.1

-1000.0-800.0-600.0-400.0-200.0

0.0200.0400.0600.0800.0

1000.0

FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16E FY17E FY18E

(| c

rore

)

Source: Company, ICICIdirect.com Research

Exhibit 6: Major components of WC

996.

7

1145

.7

1424

.7 2717

.8

1316

.4

1704

.1

2007

.9

2512

.3

3696

.1

2919

.6

3279

.1

3784

.4

4604

.2

6487

.7

1817

.9

0.0

1000.0

2000.0

3000.0

4000.0

5000.0

6000.0

7000.0

FY14 FY15 FY16 FY17E FY18E

(| c

rore

)

Inventory Debtors Creditors

[

Source: Company, ICICIdirect.com Research

Exhibit 7: OCF & FCF to remain healthy

132.

0

128.

9

-60.

1

61.7

-438

.1

-153

.9

10.9

-64.

1

59.5

-437

.9

-160

.7

6.9

-600.0

-400.0

-200.0

0.0

200.0

400.0

FY13 FY14 FY15 FY16 FY17E FY18E

(| c

rore

)

CFO FCFF

-ve due to increase in land inventory

Source: Company, ICICIdirect.com Research

Opportunities galore…growth drivers for PMC…

Redevelopment projects…new thrust to growth

While the PMC division can get projects from diverse sectors and grow at a steady rate on the back of a macroeconomic revival, the next big opportunity lies in redevelopment of old government properties.

The government started focusing on redevelopment of ramshackle buildings and old government colonies in Delhi and across India to build multi-storeyed residential and commercial complexes. Currently, the company is awaiting approvals from government for redevelopment of three old colonies in Delhi worth ~| 25000 crore. They expect it to come by July, 2016.

Page 5: May 17, 2016 Rating matrix NBCC Ltd (NBCC) Rating : Buy …content.icicidirect.com/mailimages/IDirect_NBCCLtd_Q4FY... · 2016-05-17 · Steady quarter; growth prospects intact!!!

Page 5ICICI Securities Ltd | Retail Equity Research

The successful execution of the New Moti Bagh project and PWO status for NBCC has opened up a huge opportunity in other government/PSU properties. Currently, NBCC is implementing similar redevelopment projects of a government colony in East Kidwai Nagar, Delhi. It is the first of 30 government colonies across Delhi spread over 1100 hectares of prime real estate.

Opportunities from various government schemes…

NBCC has been executing many landmark projects as a PMC as its core strength leveraging its rich experience in diverse sectors. The company has also been designated as the implementing agency for executing projects under Jawaharlal Nehru National Urban Renewal Mission (JNNURM), Pradhan Mantri Gram Sadak Yojna (PMGSY), solid waste management (SWM) and developmental work in the North Eastern Region. NBCC has signed an agreement with the state government of Punjab wherein it will build 18 de-addiction centres at an initial cost of | 100 crore using prefab technology.

Also, the company is in the process of sending a Cabinet note for redevelopment of 18 government presses across India wherein presses will be modernised and the rest of the land will be used for commercial exploitation. Recently, in the state budget speech, the Rajasthan chief minister announced the formation of a JV with NBCC to execute various redevelopment works and construction projects in Rajasthan.

Real estate…value additive business…

We also like NBCC’s strategy to invest part of its surplus cash flow into the value enhancing real estate business in a disciplined manner and keep its balance sheet debt free. Currently, NBCC has accumulated 170 acres of land reserves spread across 12 states in India. However, the company is not aggressive in this segment and does not wish to launch any new projects but would focus on completion of the existing projects. Mainly, the projects are for affordable housing and middle income group. Further, in Q4FY16, the real estate revenues slumped 81.6% YoY to | 49.8 crore.

Exhibit 8: Revenue contribution from real estate division

1780

.3

1147

.3

1116

.6

1421

.1

2241

.2

270.

7

128.

2

110.

0

163.

0

49.8

11.2

15.2 14.6

7.7

2.2

0.0

500.0

1000.0

1500.0

2000.0

Q4FY15 Q1FY16 Q2FY16 Q3FY16 Q4FY16

(| c

rore

)

0.0

5.0

10.0

15.0

20.0

25.0

(%)

Total Revenue Revenue from Real Estate% Contribution of Real Estate

Source: Company, ICICIdirect.com Research

Exhibit 9: EBIT and EBIT margin from real estate division

51.4

46.4

15.8

25.8

35.5

23.5

31.6

28.527.7

19.0

0.0

10.0

20.0

30.0

40.0

50.0

60.0

Q4FY15 Q1FY16 Q2FY16 Q3FY16 Q4FY16

(| c

rore

)

10.0

15.0

20.0

25.0

30.0

35.0

(%)

EBIT from Real Estate EBIT Margin of Real Estate

Source: Company, ICICIdirect.com Research

Capital employed (| crore) FY14 FY15 FY16

PMC -355.6 -419.2 -460.2

Real Estate 849.2 1071.7 1427.1

EPC 80.9 120.8 128.6

Unallocated 552.8 565.0 393.0

Total 1127.3 1338.3 1488.5

Source: Company, ICICIdirect.com Research

Page 6: May 17, 2016 Rating matrix NBCC Ltd (NBCC) Rating : Buy …content.icicidirect.com/mailimages/IDirect_NBCCLtd_Q4FY... · 2016-05-17 · Steady quarter; growth prospects intact!!!

Page 6ICICI Securities Ltd | Retail Equity Research

EPC…well poised to take on new opportunities in infrastructure sector…

NBCC was incorporated as a pure EPC player wherein it has been executing engineering and construction services for projects such as chimneys, cooling towers and various types of power plant works. However, growth has remained subdued in the last few years. Currently, mere 5.0% of the revenues are contributed by the EPC business. Going ahead, the government’s priority to boost infrastructure will create opportunities for the construction industry. NBCC is well poised to grab this opportunity.

Exhibit 10: Revenue contribution from EPC division

1780

.3

1147

.3

1116

.6

1421

.1

2241

.2

89.5

49.1

55.9

71.2

131.

55.0

4.3

5.0 5.05.9

0.0

500.0

1000.0

1500.0

2000.0

Q4FY15 Q1FY16 Q2FY16 Q3FY16 Q4FY16

(| c

rore

)

2.0

3.0

4.0

5.0

6.0

(%)

Total Revenue Revenue from EPC% Contribution of EPC

Source: Company, ICICIdirect.com Research

Exhibit 11: EBIT and EBIT margin from EPC division

16.8

1.3 9.7

8.5

15.9

18.8

2.6

17.3

11.9 12.1

0.0

2.0

4.0

6.0

8.0

10.0

12.0

Q4FY15 Q1FY16 Q2FY16 Q3FY16 Q4FY16(|

cro

re)

0.0

5.0

10.0

15.0

20.0

(%)

EBIT from EPC EBIT Margin of EPC

Source: Company, ICICIdirect.com Research

Navratna status opens up new set of opportunities…

NBCC became the fifteenth Navratna company on June 23, 2014 among 250 PSUs in India. Navratna status gives the company freedom to forge tie-ups in the international market and also allows its autonomy on investment decision up to | 1000 crore. The government is considering a proposal to hive off real estate owned by sick PSUs such as Bengal Chemicals, National Bicycle Corporation and Richardson & Cruddas in Mumbai's Worli, Byculla, etc. to NBCC. NBCC will be using the direct sale of land or JV for the development of real estate. This is expected to pave the way for long-term opportunities for NBCC in the real estate segment.

The company is also looking at strategic alliances with domestic and international players in West Asia, Europe and Commonwealth of Independent States (CIS) countries to scout for EPC contracts as the acquisition route would be time consuming. NBCC has already signed a JV with Oman based Al Naba Construction LLC for EPC contracts in Oman and the UAE. Also, it is looking at similar opportunities in political stable geographies like Turkey and CIS countries.

Navratna status gives the company freedom to forge tie-ups in the international market and also allows it autonomy on investment decisions up to | 1000 crore.

Page 7: May 17, 2016 Rating matrix NBCC Ltd (NBCC) Rating : Buy …content.icicidirect.com/mailimages/IDirect_NBCCLtd_Q4FY... · 2016-05-17 · Steady quarter; growth prospects intact!!!

Page 7ICICI Securities Ltd | Retail Equity Research

Revenues to grow at CAGR of 38.1% during FY16-18E…

NBCC has achieved its target revenue of | 4,200 crore, PAT margin of 5.6% and order inflow of | 5,000 crore in FY15 as per the MoU signed with Government of India. By looking at NBCC’s past track record and current position, we believe it will over achieve the expected MoU target in FY17E and FY18E. Considering the current order book, its ongoing projects and strong opportunities, we expect revenues to witness robust growth at 38.1% CAGR to | 10968.0 crore in FY16-18E. Exhibit 12: Revenue growth momentum to continue…

3429

.3

3186

.8

4008

.8

4621

.0

5749

.2

1096

8.0

7336

.0

0.0

2000.0

4000.0

6000.0

8000.0

10000.0

12000.0

FY12 FY13 FY14 FY15 FY16 FY17E FY18E

CAGR - 38.1%

Source: Company, ICICIdirect.com Research

EBITDA to grow at 48.2% CAGR during FY16-18E…

The management is not aggressive on the real estate business. Going ahead, with lower proportion of revenues from the high margin real estate and EPC division, we anticipate a moderate 93 bps expansion in the EBITDA margin from 5.9% in FY16 to 6.9% in FY18E. Consequently, EBITDA is expected to grow at 48.2% CAGR to | 759.8 crore in FY16-18E. Exhibit 13: EBITDA and EBITDA margin trend

113.

2

151.

0

159.

3

224.

0

287.

0

759.

8

431.

5

346.

2

3.6

4.4

5.05.5

5.9 5.8

6.9

6.2

0.0

300.0

600.0

900.0

FY11 FY12 FY13 FY14 FY15 FY16 FY17E FY18E

(| c

rore

)

3.0

5.0

7.0

9.0

(%)

EBITDA EBITDA Margin

CAGR - 48.2%

Source: Company, ICICIdirect.com Research

We expect revenue to witness robust growth of 38.1%

CAGR to | 10968.0 crore during FY16-18E

We anticipate a moderate 93 bps expansion in the EBITDA

margin from 5.9% in FY16 to 6.9% in FY18E. Consequently,

EBITDA is expected to grow at 48.2% CAGR to | 431.5

crore during FY16-18E.

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Page 8ICICI Securities Ltd | Retail Equity Research

PAT to grow at 36.6% CAGR during FY16-18E…

NBCC’s bottomline has grown at 19.0% CAGR during FY10-15 largely led by its robust topline growth and zero interest expenses. We envisage PAT will post a growth at 36.6% CAGR during FY16-18E to | 576.3 crore aided mainly by the strong topline performance.

Exhibit 14: PAT growth trend

140.

3

190.

2

207.

5

247.

2

277.

3

308.

8

363.

7

576.

3

4.5

5.5

6.5

6.15.9

5.3

4.9 5.2

0.0

200.0

400.0

600.0

FY11 FY12 FY13 FY14 FY15 FY16 FY17E FY18E

(| c

rore

)

4.0

5.0

6.0

7.0

PAT PAT Margin

CAGR - 36.6%

Source: Company, ICICIdirect.com Research

Dividend payout increases sharply….

The government has issued revised guidelines for central public sector enterprise (CPSEs) to pay annual dividend of 30% of PAT or 30% of Government of India's equity, whichever is higher. This is in lieu of previous guidelines in 2004 communicating a dividend policy of 20% of PAT or 20% of equity, whichever is higher. However, this should not impact NBCC much as it has paid ~47% of PAT as dividend in FY16. Going forward, we expect NBCC to maintain a similar dividend payout ratio.

Exhibit 15: Dividend payout track record…

2326 25

29

47 47 47

29

20

25

30

35

40

45

50

FY11 FY12 FY13 FY14 FY15 FY16 FY17E FY18E

(%)

Source: Company, ICICIdirect.com Research

We envisage PAT will post healthy growth of 36.6% CAGR

during FY16-18E to | 576.3 crore aided mainly by the

strong topline performance

NBCC has paid out ~47% of its earnings as dividends to

investors in FY16 and we expect a similar payout ratio,

going ahead

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Page 9ICICI Securities Ltd | Retail Equity Research

Healthy return ratios…

The average RoE and RoCE of NBCC during FY10-15 have remained at the level of 21.6% and 30.5%, respectively, on the back of a strong bottomline show. They were at 20.7% & 31.2% in FY16, respectively. Going ahead, we expect RoE and RoCE to bounce to 29% & 44.6%, respectively, in FY18E with anticipated bottomline growth. Exhibit 16: RoE and RoCE trend

21.5 20.9 20.7 21.6

29.033.0 32.0

22.2

21.8 21.9

31.228.6

25.4

30.833.0

44.6

15.0

21.0

27.0

33.0

39.0

45.0

FY11 FY12 FY13 FY14 FY15 FY16 FY17E FY18E

(%)

RoE RoCE

Source: Company, ICICIdirect.com Research

Exhibit 17: PAT margin to drive future RoE…

1.0 1.2 1.3 1.0 1.0 1.0 1.0 1.0

4.83.5 2.6 3.5 3.4 3.8 4.3

5.4

4.5

5.5

6.56.1 5.9

5.34.9 5.2

0.0

3.0

6.0

9.0

12.0

15.0

18.0

FY11 FY12 FY13 FY14 FY15 FY16 FY17E FY18E

(x)

0.0

2.0

4.0

6.0

8.0

(%)

Leverage (Asset/Equity) Asset Turnover (Sales/Asset) PAT Margin (PAT/Sales)

Source: Company, ICICIdirect.com Research

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Page 10ICICI Securities Ltd | Retail Equity Research

Conference call highlights

• Management guidance: The management has guided for ~25-30% revenue growth & ~20% bottomline growth in FY17E

• Order book update: NBCC’s orderbook is at ~| 37000 crore (ex-DDA and several other redevelopment orders), 7.2x TTM revenues providing strong revenue visibility. Out of this, 85% comes from the PMC division, ~10% from real estate division and ~4-5% from EPC division. In terms of opportunities, the company expects orders from redevelopment of three old colonies worth ~| 25000 crore and several other redevelopment projects. The company expects to get approvals for the redevelopment of three colonies from government by July, 2016. Further, the company will have to make an upfront equity investment of ~| 300-500 crore in these colonies for the first six months

• Update on key projects: In terms of execution, the company has executed works worth ~| 300 crore in Kidwai Nagar project in Q4FY16 and works worth ~| 900 crore in FY16. Further, for Karkardooma and Trilokpuri project, designing work is going on and DPR’s have been submitted. The execution is expected to start in the next six to nine months. For AIIMS’ Trauma centre, basic works such as constructing boundary wall has started. The management expects the company to start the actual work by October and expects it to be completed in 36 months. For the DDA project, the architect has been finalised while for the AIIMS project design work is going on and the management expects work for both projects to start in Q4FY17

• HSCL takeover deal: The takeover of Hindustan Steelworks Construction (HSCL) is in final stages and should be completed in FY17E. It will be a subsidiary of NBCC with a 51% stake. HSCL is a Kolkata-based PSU with an order book of | 8200 crore, topline of | 1520 crore and a loss of ~| 8 crore in FY15. Further, its loans would be waived off once NBCC takes it over. NBCC will invest ~| 120-150 crore in this deal

• Lower PMC margins: PMC margins saw a dip on account of higher employee and other expenses. Employee expenses were higher due to a booking of one off item of ~| 20 crore associated with post retirement medical benefits expenses for last year and one-time expenditure of ~| 8.9 crore on the aspect of holding Navratna status. Other expenses came in higher due to a provision of ~| 15 crore, which has to be recovered from contractors

• Real estate update: The company has ~25-30 land parcels with five to six projects under construction and three to four projects in the planning phase. Further, the company is not aggressive in this segment and does not wish to launch any new projects but would focus on completion of the existing projects. Mainly, the projects are for affordable housing and middle income group

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Page 11ICICI Securities Ltd | Retail Equity Research

Outlook and Valuation At the CMP, the stock is trading at 20.6x FY18E EPS. Given its healthy order book in the PMC division and a cash rich balance sheet, NBCC’s revenues have grown at a CAGR of 14.0% in FY12-16 despite the challenges being encountered by the industry. Going ahead, we expect NBCC’s next leg of growth to come from redevelopment of government properties in Delhi. Hence, we expect revenues and net profit to grow at a sturdy CAGR of 38.1% and 36.6%, respectively, in FY16-18E.

We have valued NBCC’s PMC business & redevelopment business on the DCF based methodology to capture the long term opportunities in each business. We have considered cost of equity of 12.4% for the PMC business and 14% for the redevelopment space. Based on these assumptions, we have valued NBCC’s PMC business at | 528/share and re-development opportunities at | 498/share. The real estate business has been valued at | 95/share (at 0.8x FY16 P/BV) while the EPC business has been valued at | 20.0/share (7x FY17EV/EBIT). Overall, we ascribe target price of | 1140/share for NBCC based on SOTP methodology.

Exhibit 18: SoTP valuation summary SOTP valuation Equity Value (| crore) | per share Comments

PMC Business 6332 528 DCF based valuation

Re-development Opportunity 5980 498 DCF based valuation

Real Estate Business 1142 95 at 0.8x FY16 P/BV

EPC 237 20 at 7x FY17E EV/EBIT

Total 13691 1141

Rounded off Target Price 1140

Source: Company, ICICIdirect.com Research

Exhibit 19: One year forward P/E

0

200

400

600

800

1,000

1,200

1,400

Apr-1

2

Jul-1

2

Oct-1

2

Jan-

13

Apr-1

3

Jul-1

3

Oct-1

3

Jan-

14

Apr-1

4

Jul-1

4

Oct-1

4

Jan-

15

Apr-1

5

Jul-1

5

Oct-1

5

Jan-

16

Apr-1

6

Pric

e (|

)

Price 12x 16x 20x 24x 28x

Source: Bloomberg, ICICIdirect.com Research

We ascribe target price of | 1140/share for NBCC based

on SOTP methodology

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Page 12ICICI Securities Ltd | Retail Equity Research

Exhibit 20: One year forward P/BV

0

400

800

1,200

1,600

2,000

2,400

Apr-1

2

Jul-1

2

Oct-1

2

Jan-

13

Apr-1

3

Jul-1

3

Oct-1

3

Jan-

14

Apr-1

4

Jul-1

4

Oct-1

4

Jan-

15

Apr-1

5

Jul-1

5

Oct-1

5

Jan-

16

Apr-1

6

Pric

e (|

)

Price 2x 4x 6x 8x 10x

Source: Bloomberg, ICICIdirect.com Research

Exhibit 21: One year forward EV/EBITDA

-500

2,500

5,500

8,500

11,500

14,500

17,500

Apr-1

2

Jul-1

2

Oct-1

2

Jan-

13

Apr-1

3

Jul-1

3

Oct-1

3

Jan-

14

Apr-1

4

Jul-1

4

Oct-1

4

Jan-

15

Apr-1

5

Jul-1

5

Oct-1

5

Jan-

16

Apr-1

6

EV (|

Cr)

EV 35x 30x 25x 20x 15x

Source: Bloomberg, ICICIdirect.com Research

Exhibit 22: Valuation

Sales Growth EPS Growth PE EV/EBITDA RoNW RoCE (| cr) (%) (|) (%) (x) (x) (%) (%)

FY15 4,621.0 15.3 23.1 12.2 42.7 37.1 20.9 32.0 FY16E 5,749.2 24.4 25.7 11.3 38.4 30.3 20.7 31.2 FY17E 7,336.0 27.6 30.3 17.8 32.6 25.7 21.6 33.0 FY18E 10,968.0 49.5 48.0 58.5 20.6 15.3 29.0 44.6

[

Source: Company, ICICIdirect.com Research

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Page 13ICICI Securities Ltd | Retail Equity Research

Company snapshot

0

200

400

600

800

1,000

1,200

1,400

Apr-1

2

Oct-1

2

Apr-1

3

Oct-1

3

Apr-1

4

Oct-1

4

Apr-1

5

Oct-1

5

Apr-1

6

Oct-1

6

Apr-1

7

Target Price | 1140

Source: Bloomberg, Company, ICICIdirect.com Research Key events

Date EventNov-15 All India Institute of Medical Sciences (AIIMS) issues letter of award (LoA) for re-development of AIIMS Western Campus & Ayurvigyan Nagar, New Delhi. It

involves construction of 3000 flats in 2.5 years, with the financial implication of | 5,828 croreJan-16 The government issues revised guidelines for CPSEs to pay annual dividend of 30% of PAT or 30% of GoI''s equity, whichever is higher in lieu of the previous

guidelines in 2004 communicating a dividend policy of 20% of PAT or 20% of equity, whichever is higherJan-16 India Trade Promotion Organisation awards the work of redevelopment of Pragati Maidan involving construction of integrated exhibition cum convention centre

worth | 2149 crore to NBCCMar-16 NBCC secures orders worth | 131 crore in the project management consultancy (PMC) division in February, 2016Mar-16 The Board of Directors of NBCC at its meeting on March 11, 2016, considers and approves the proposal for splitting one equity share into five of the company

subject to the approval of shareholders with respect to the same Mar-16 The Board of Directors of NBCC accord in-principle approval for takeover of Hindustan Steelworks Construction (HSCL) after restructuring its balance sheet involving

waiving off government loans with interest up to the date of takeover. This would provide further contribution for contingent liabilities and payment of other liabilities including bank loans

Apr-16 NBCC secures projects worth | 227 crore in the project management and consultancy (PMC) division in March, 2016

Source: Company, ICICIdirect.com Research Top 10 Shareholders Shareholding Pattern Rank Name Latest Filing Date % O/S Position (m) Change (m)1 Government of India 31-Mar-16 90.0% 10800.0% 0.0%2 Allianz Global Investors Asia Pacific Limited 31-Dec-15 0.4% 50.9% -2.7%3 Tata Asset Management Limited 31-Mar-16 0.4% 47.1% 0.0%4 Amundi Hong Kong Limited 31-Jan-16 0.3% 35.0% 0.0%5 Norges Bank Investment Management (NBIM) 31-Dec-15 0.3% 29.9% -6.6%6 L&T Investment Management Limited 31-Mar-16 0.2% 25.7% -3.8%7 J.P. Morgan Asset Management (Hong Kong) Ltd. 31-Mar-16 0.2% 23.8% -1.9%8 Nomura Asset Management Co., Ltd. 30-Sep-14 0.2% 21.6% 21.6%9 Capital Investment Trust Corporation 31-Dec-15 0.1% 15.6% 0.0%10 HSBC Global Asset Management (India) Private Limited 31-Mar-16 0.1% 15.5% 0.0%

(in %) Sep-15 Dec-15 Mar-16Promoter 90.00 90.00 90.00Public 10.00 10.00 10.00Others 0.00 0.00 0.00Total 100.00 100.00 100.00

Source: Reuters, ICICIdirect.com Research Recent Activity

Investor name Value (m) Shares (m) Investor name Value (m) Shares (m)Edelweiss Asset Management Ltd. 0.01 0.00 Driehaus Capital Management, LLC -1.5 -0.1Government of India 0.00 0.00 L&T Investment Management Limited -1.1 -0.1

Norges Bank Investment Management (NBIM) -1.0 -0.1Capital Investment Trust Corporation -0.7 0.0Allianz Global Investors Asia Pacific Limited -0.4 0.0

Buys Sells

Source: Reuters, ICICIdirect.com Research

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Page 14ICICI Securities Ltd | Retail Equity Research

Financial summary Profit and loss statement | Crore

(| Crore) FY15 FY16E FY17E FY18ENet Sales 4,621.0 5,749.2 7,336.0 10,968.0 Other income 146.6 129.0 135.5 142.3 Total revenues 4,808.7 5,956.1 7,553.3 11,196.1 Raw Material Expense 4,082.6 5,103.3 6,479.4 9,691.4 Employee benefit expenses 195.1 222.3 266.7 320.0 Other Expenses 56.3 77.5 158.5 196.7 EBITDA 287.0 346.2 431.5 759.8

Interest 40.2 36.8 44.9 64.0 Depreciation 2.3 2.2 2.5 2.7 Other income 146.6 129.0 135.5 142.3 PBT 391.0 436.2 519.6 835.3 Taxes 113.7 127.4 155.9 258.9 PAT 277.3 308.8 363.7 576.3 PAT Growth rate 12.2 11.3 17.8 58.5 Adjusted EPS (Diluted) 23.1 25.7 30.3 48.0

Source: Company, ICICIdirect.com Research

Cash flow statement | Crore

(| Crore) FY15 FY16E FY17E FY18EProfit after Tax 277.3 308.8 363.7 576.3 Depreciation 2.3 2.2 2.5 2.7 Interest 0.1 0.1 0.1 0.1 Others (12.5) (551.9) (398.3) (1,044.7) Cash Flow before wc changes 380.9 (113.4) 123.8 (206.7) Net Increase in Current Assets 19.5 295.4 106.9 643.5 Net Increase in Current Liabilities (554.3) 16.4 (286.3) (256.5) Net CF from operating activities (153.9) 198.4 (55.6) 180.3 (Purchase)/Sale of Fixed Assets (6.8) (3.0) (4.0) (4.0) Net CF from Investing activities (5.0) 34.2 (386.8) (403.7) Inc / (Dec) in Equity Capital - - - - Dividend (70.2) (144.4) (170.1) (269.5) Net CF from Financing activities (70.2) (144.4) (170.1) (269.5) Net Cash flow (229.1) 88.2 (612.5) (492.9) Opening Cash 896.2 1,059.5 1,147.7 535.3 Closing Cash/ Cash Equivalent 667.1 1,147.7 535.3 42.3

Source: Company, ICICIdirect.com Research

Balance sheet | Crore

(| Crore) FY15 FY16E FY17E FY18ELiabilitiesEquity Capital 120.0 120.0 120.0 120.0 Reserve and Surplus 1,204.1 1,368.5 1,562.2 1,869.0 Total Shareholders funds 1,324.1 1,488.5 1,682.2 1,989.0 Minority Interest - - - - Total Debt - - - - Deferred Tax Liability (19.5) (31.5) (31.5) (31.5) Total Liabilities 1,305.0 1,457.0 1,651.0 1,958.0 AssetsGross Block 43.6 46.6 50.6 54.6 Less Acc. Dep 17.3 19.6 22.1 24.8 Net Block 26.2 27.0 28.5 29.8 Net Intangibles Assets - - - - Total Fixed Assets 26.2 27.0 28.5 29.8 Investments 161.0 230.8 730.8 1,230.8 Inventory 1,145.7 1,424.7 1,817.9 2,717.8 Sundry Debtors 1,704.1 2,007.9 2,512.3 3,455.7 Loans & Advances 612.3 617.6 888.7 1,328.7 Cash & Bank Balances 1,059.5 1,147.7 535.3 42.3 Other Current Assets 16.2 7.1 7.1 7.1 Total Current Assets 4,537.7 5,205.0 5,761.3 7,551.7 Trade Payable 1,514.0 1,883.6 2,411.8 3,605.9 Other Current Liabilities 1,765.1 1,900.8 2,192.4 2,881.7 Provisions 141.2 221.3 265.6 367.0 Net Current Assets 1,117.4 1,199.3 891.4 697.0 Total Assets 1,305.0 1,457.0 1,651.0 1,958.0

Source: Company, ICICIdirect.com Research

Key ratios

FY15 FY16E FY17E FY18EPer Share Data (|)EPS - Diluted 23.1 25.7 30.3 48.0 Cash EPS 23.3 25.9 30.5 48.3 Book Value 110.3 124.0 140.2 165.7 Dividend per share 6.6 12.0 14.2 22.5 Operating Ratios (%)EBITDA / Net Sales 6.2 6.0 5.9 6.9 PAT / Net Sales 6.0 5.4 5.0 5.3 Inventory Days 90.5 90.4 90.4 90.4 Debtor Days 134.6 127.5 125.0 115.0 Creditor Days 119.6 119.6 120.0 120.0 Return Ratios (%)RoNW 20.9 20.7 21.6 29.0 RoCE 32.0 31.2 33.0 44.6 Valuation Ratios (x)EV / EBITDA 37.1 30.3 25.7 15.3 P/E (Diluted) 42.7 38.4 32.6 20.6 EV / Net Sales 2.3 1.8 1.5 1.1 Market Cap / Sales 2.6 2.1 1.6 1.1 Price to Book Value 8.9 8.0 7.0 6.0 Dividend yield 0.7 1.2 1.4 2.3 Solvency Ratios (x)Net Debt / Equity - - - - Debt / EBITDA - - - - Current Ratio 1.0 1.0 1.1 1.1 Quick Ratio 0.7 0.7 0.7 0.7

Source: Company, ICICIdirect.com Research

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Page 15ICICI Securities Ltd | Retail Equity Research

ICICIdirect.com coverage universe (Construction)

CMP M Cap(|) TP(|) Rating (| Cr) FY15 FY16E FY17E FY15 FY16E FY17E FY15 FY16E FY17E FY15 FY16E FY17E FY15 FY16E FY17E

NCC (NAGCON) 76 80 Buy 3,552 2.0 3.5 4.3 38.9 22.3 18.2 9.3 8.9 8.4 1.4 1.3 1.2 3.5 5.8 6.8NBCC (NBCC) 987 1,140 Buy 13,156 20.6 23.1 25.7 47.5 42.4 38.0 46.7 36.8 30.3 10.4 8.9 7.9 21.9 20.9 20.7Simplex Infra (SIMCON) 270 350 Buy 1,341 12.6 14.7 20.0 17.8 15.2 11.2 6.9 6.4 5.8 0.8 0.7 0.7 4.4 4.9 6.3

Sector / CompanyEPS (|) P/E (x) EV/EBITDA (x) P/B (x) RoE (%)

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Page 16ICICI Securities Ltd | Retail Equity Research

RATING RATIONALE ICICIdirect.com endeavours to provide objective opinions and recommendations. ICICIdirect.com assigns ratings to its stocks according to their notional target price vs. current market price and then categorises them as Strong Buy, Buy, Hold and Sell. The performance horizon is two years unless specified and the notional target price is defined as the analysts' valuation for a stock. Strong Buy: >15%/20% for large caps/midcaps, respectively, with high conviction; Buy: >10%/15% for large caps/midcaps, respectively; Hold: Up to +/-10%; Sell: -10% or more;

Pankaj Pandey Head – Research [email protected]

ICICIdirect.com Research Desk, ICICI Securities Limited, 1st Floor, Akruti Trade Centre, Road No 7, MIDC, Andheri (East) Mumbai – 400 093

[email protected]

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Page 17ICICI Securities Ltd | Retail Equity Research

Disclaimer

ANALYST CERTIFICATION We , Deepak Purswani, CFA MBA (Finance) and Vaibhav Shah, MBA (Finance); research analysts, authors and the names subscribed to this report, hereby certify that all of the views expressed in this research report accurately reflect our views about the subject issuer(s) or securities. We also certify that no part of our compensation was, is, or will be directly or indirectly related to the specific recommendation(s) or view(s) in this report.

Terms & conditions and other disclosures: ICICI Securities Limited (ICICI Securities) is a Sebi registered Research Analyst having registration no. INH000000990. ICICI Securities Limited (ICICI Securities) is a full-service, integrated investment banking and is, inter alia, engaged in the business of stock brokering and distribution of financial products. ICICI Securities is a wholly-owned subsidiary of ICICI Bank which is India’s largest private sector bank and has its various subsidiaries engaged in businesses of housing finance, asset management, life insurance, general insurance, venture capital fund management, etc. (“associates”), the details in respect of which are available on www.icicibank.com. ICICI Securities is one of the leading merchant bankers/ underwriters of securities and participate in virtually all securities trading markets in India. We and our associates might have investment banking and other business relationship with a significant percentage of companies covered by our Investment Research Department. ICICI Securities generally prohibits its analysts, persons reporting to analysts and their relatives from maintaining a financial interest in the securities or derivatives of any companies that the analysts cover. The information and opinions in this report have been prepared by ICICI Securities and are subject to change without any notice. The report and information contained herein is strictly confidential and meant solely for the selected recipient and may not be altered in any way, transmitted to, copied or distributed, in part or in whole, to any other person or to the media or reproduced in any form, without prior written consent of ICICI Securities. 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