National Buildings Construction Corporation Limited, commonly known as NBCC, was listed on the BSE on April 12, 2012. In the last five years, its stock has given a massive return of around 300% to its investors. Will NBCC continue to provide such impressive returns in 2025 and future years as well? In this article, we will explore the NBBC’s future growth potential and the NBCC share price target for 2025 to 2050.
About NBCC
NBCC (National Buildings Construction Corporation) is a public sector company that was established in 1960. It is primarily involved in construction and project management, focusing on building infrastructure such as residential, commercial, and institutional projects. The company is also engaged in real estate development and provides services in project management consultancy.
NBCC Business Model
- Real Estate Development: NBCC builds homes, offices, and other buildings. Once they finish, they sell or rent these buildings to make a profit.
- Construction Contracts: NBCC builds roads, bridges, and other structures. They take on big construction projects from the government or private companies.
- Engineering and Technical Services: NBCC provides services like designing and planning for construction projects.
NBCC Fundamental Analysis
| Stock Name | NBCC Ltd. |
|---|---|
| NSE Symbol | NBCC |
| Market Cap | ₹25369 Cr. |
| 52W High | ₹140 |
| 52W Low | ₹70.8 |
| Stock P/E | 44.8 |
| Book Value | ₹8.66 |
| Dividend Yield | 0.56% |
| ROCE | 32.0% |
| ROE | 24.8% |
| Face Value | ₹1.00 |
| Industry PE | 32.6 |
| Price to book value | 10.8 |
| Debt to equity | 0.00 |
| PEG Ratio | 6.71 |
| Quick ratio | 1.06 |
| Shareholder | March 2023 | March 2024 | March 2025 |
|---|---|---|---|
| Promoters | 61.75% | 61.75% | 61.75% |
| FIIs | 3.43% | 4.33% | 4.20% |
| DIIs | 10.61% | 9.94% | 8.93% |
| Public | 24.21% | 23.98% | 25.13% |
| No. of Shareholders | 5,28,298 | 13,19,446 | 16,09,626 |
Key Factors Driving NBCC’s Future Growth
- More government projects: The Indian government provides NBCC with numerous construction projects, such as office buildings, residences, and highways. NBCC will continue to grow as the government spends more on them.
- Smart Cities, Urban Development: India is building smarter cities and better infrastructure. NBCC is a part of these large projects, which will help the organization develop in the future.
- Real Estate Business Growth: NBCC is expanding its residential, commercial, and retail developments. As more people buy and rent homes, NBCC will make more money.
- Rebuilding old government buildings: NBCC is converting old government buildings into modern ones. Because many similar projects are coming up, NBCC will have more work and profit.
- International Projects: NBCC is also working on projects in other countries. This increases revenue and helps NBCC develop outside India.
- Using New Technology: NBCC employs more advanced machinery and construction processes. This helps to complete projects faster and with higher quality, resulting in more contracts.
Pros of Investing in NBCC
- Government Support: As NBCC is a government company under the Ministry of Housing and Urban Affairs, NBCC receives significant government funding. This backing boosts the company’s credibility and grants access to major public-sector initiatives.
- Global Presence: NBCC has projects in countries including Iraq, Libya, Nepal, Mauritius, Turkey, Botswana, Maldives, Yemen, Oman, the United Arab Emirates, Dubai, and Africa. NBCC has expanded its global activities. This worldwide reach grows the company’s project portfolio and creates new growth potential.
- Debt Free: NBCC has no loans or debt, which is a good sign for any company.
- High ROCE and ROE: The company’s ROE is 24.8%, and its ROCE is 32%, reflecting the efficient use of funds to generate profits.
- Strong Profit Growth: NBCC’s profits have grown at a CAGR of 32% over the last three years.
- High Return on Capital Employed (ROCE): NBCC’s 5yrs average ROCE is 23.3%, which shows that it is utilizing its capital effectively to generate profits.
- Increase in FIIs Holding: Foreign Institutional Investors (FIIs) have increased their holding to 4.20% in March 2025 from 4.15% in December 2024, which indicates growing confidence in the NBCC’s future potential by the FIIs.
Cons of Investing in NBCC
- Competitive Industry Challenges: NBCC operates in the engineering and construction business, which is a very competitive and capital-intensive business.
- Low Operating Profit Margin: The average operating profit margin of NBCC is around 4%, which is less compared to its peers.
- Poor Sales Growth: NBCC has delivered a poor sales growth of 1% over the last five years.
- Overvaluation Concern: NBCC stock is trading at a PE ratio of 44.8 and a (P/B) ratio of 10.8, which shows that its stock is significantly overvalued compared to its earnings and assets.
NBCC Ltd Balance Sheet
| Particulars | Mar 2023 | Mar 2024 | Sep 2024 |
|---|---|---|---|
| Equity Capital | 180 | 180 | 180 |
| Reserves | 1,764 | 2,046 | 2,158 |
| Borrowings | 0 | 1 | 0 |
| Other Liabilities | 10,968 | 10,588 | 9,991 |
| Total Liabilities | 12,913 | 12,814 | 12,330 |
| Fixed Assets | 182 | 185 | 185 |
| CWIP | 4 | 12 | 14 |
| Investments | 21 | 276 | 247 |
| Other Assets | 12,705 | 12,341 | 11,884 |
| Total Assets | 12,913 | 12,814 | 12,330 |
By the end of 2025, the NBCC share price is expected to be around ₹130 in normal conditions. In a bear market, it might be ₹125, and in a bull market, it may go up to ₹140.
| NBCC Share Price Target 2025 | Rupees (₹) |
|---|---|
| 1st Target | 125 |
| 2nd Target | 130 |
| 3rd Target | 140 |
In 2026, the NBCC share price is expected to be around ₹165 in a normal situation. In a bear market, it might be ₹150, and in a bull market, it may cross ₹185.
| NBCC Share Price Target 2026 | Rupees (₹) |
|---|---|
| 1st Target | 150 |
| 2nd Target | 165 |
| 3rd Target | 185 |
According to our analysis, the NBCC share price is expected to be around ₹210 in 2027. In a bear market, it might be ₹210, and in a bull market, it may cross ₹235.
| NBCC Share Price Target 2027 | Rupees (₹) |
|---|---|
| 1st Target | 180 |
| 2nd Target | 210 |
| 3rd Target | 235 |
According to our analysis, the NBCC share price may trade near ₹240 by 2028; bearish conditions could pull it down to ₹215, while a strong bull run might lift it to ₹310.
| NBCC Share Price Target 2028 | Rupees (₹) |
|---|---|
| 1st Target | 215 |
| 2nd Target | 240 |
| 3rd Target | 310 |
In a normal situation, the NBCC share price is projected to be approximately ₹275 in 2029. In a bear market, the value may be as low as ₹260, while in a bull market, it may rise to ₹310.
| NBCC Share Price Target 2029 | Rupees (₹) |
|---|---|
| 1st Target | 260 |
| 2nd Target | 275 |
| 3rd Target | 400 |
In a normal situation, the NBCC share price is projected to be approximately ₹350 in 2030. In a bear market, the value may be as low as ₹310, while in a bull market, it may rise to ₹520.
| NBCC Share Price Target 2030 | Rupees (₹) |
|---|---|
| 1st Target | 310 |
| 2nd Target | 350 |
| 3rd Target | 520 |
By 2035, the NBCC share price is projected to be around ₹775 under normal conditions. In adverse markets, the price could fall to ₹650, while favorable conditions might push it up to ₹1450.
| NBCC Share Price Target 2035 | Rupees (₹) |
|---|---|
| 1st Target | 650 |
| 2nd Target | 775 |
| 3rd Target | 1450 |
Under normal conditions, the NBCC share price might hit ₹1700 by 2040. A bearish trend could lower it to ₹1300, whereas a bullish surge could raise it to ₹4500.
| NBCC Share Price Target 2040 | Rupees (₹) |
|---|---|
| 1st Target | 1300 |
| 2nd Target | 1700 |
| 3rd Target | 4500 |
In 2050, the Tata SteelNBCC share price is expected to be around ₹7500 in a normal situation. In a bear market, it might be ₹5500, and in a bull market, it may go up to ₹20,000.
| NBCC Share Price Target 2050 | Rupees (₹) |
|---|---|
| 1st Target | 5500 |
| 2nd Target | 7500 |
| 3rd Target | 20,000 |
| Years | Target Price |
|---|---|
| NBCC Share Price Target 2025 | ₹125 to ₹140 |
| NBCC Share Price Target 2026 | ₹150 to ₹185 |
| NBCC Share Price Target 2027 | ₹180 to ₹235 |
| NBCC Share Price Target 2028 | ₹215 to ₹310 |
| NBCC Share Price Target 2029 | ₹260 to ₹400 |
| NBCC Share Price Target 2030 | ₹310 to ₹520 |
| NBCC Share Price Target 2035 | ₹650 to ₹1450 |
| NBCC Share Price Target 2040 | ₹1300 to ₹4500 |
| NBCC Share Price Target 2050 | ₹5500 to ₹20000 |
Conclusion
NBCC has experienced significant growth in the past and has a bright future with government projects, global expansion, and smart city developments. However, issues such as high stock valuation, slow sales growth, and industry competition. While the company is well-positioned for future growth, its stock performance will be determined by new projects and market conditions. For the latest information on NBCC, you can visit NBCC official website.
Disclaimer
This article is for educational purposes only. It is not a stock recommendation and should not be treated as such. Please ask your financial advisor before making any investment decision.
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