NATIONAL BUILDINGS CONSTRUCTION CORPORATION LTD ( NBCC ) - BUY

NATIONAL BUILDINGS CONSTRUCTION CORPORATION LTD. is a newly listed PSU company. operating in Project Management consultancy (PMC), Real estate development and Civil infrastructure.It is one of the rare listed companies concentrating in PMC.Almost 85% of its total turnover is from PMC which is a high margin business compared with the rest.Under the PMC segment , company is offering management and consultancy services for civil construction projects related with road,water,Hospitals ..etc.Company having proven experience in this field and many reputed names in their client list includes   Ministry of Defense, Ministry of Home Affairs  Ministry of External Affairs, MoUD, Ministry of Commerce and Industry, Ministry of Corporate Affairs, Ministry of Finance, Haryana Urban Infrastructure Development Board, IIT Roorkee, IIT Kharagpur, IIT Patna,BHEL,NTPC..etc. In real estate segment,company having 125 Acre land assets in prime locations across 10 states and 9 projects are under various stages of executions.Since it is a PSU under Ministry of Urban Development company is getting priority from Government undertakings which is big positive especially at a time of slow growth  in infrastructure sector.At present ,company having an order book of more than Rs.10000 Cr. It is a debt free company with a cash reserve of Rs.1360 Cr t as on March 2011. On the other hand ,there may be delay in receiving payments due to the over dependency on Government orders. In the last FY , company posted a turnover of Rs.3126 Cr and a net profit of Rs.140Cr.On the post issue equity ,last year EPS is Rs.12/-. Considering all these factors reasonable appreciation is possible from current level of Rs.95/-