NBCC‘s share price has surged over 100% since the start of the year, but analysts at Nuvama think the stock still has some steam left.

The NBCC Analyst: Analysts at Nuvama Institutional Equities maintained the “hold” rating on the stock with a price target of ₹198. The target indicates an around 15% upside from the stock’s last closing price of ₹173.67.

The NBCC Thesis: The brokerage firm said that the public sector firm is well placed for growth thanks to several factors. The first one is its robust order book. The company has a strong order book of ₹81,000 crore with a book-to-bill ratio of around 7.6x. The company’s order inflow has also remained strong.

The analysts highlighted that since the start of FY25, the company has bagged orders worth around ₹19,800 crore. For the year ended March 2024, order inflows stood at ₹23,500 crore.

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The brokerage firm also pointed out that NBCC is leveraging its expertise in reviving stalled housing projects and has proposed a three-phase plan to complete 50,000 apartments across 17 supertech projects over the next three years. In addition, the company has been tasked with developing a township in Srinagar valued at ₹15,000 crore.

NBCC has successfully monetised about ₹13,400 crore in the World Trade Centre (WTC) project, exceeding its initial estimate of ₹12,500 crore. The analysts also highlighted that a buoyant real estate market is providing the company with increased opportunities, as many public sector units and government entities are looking to monetise surplus land holdings.

Price Action: NBCC’s share price was up 1.11% to trade at ₹175.59 in early trade on Tuesday.

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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.