NBCC (NBCC)

FairStock Score: 62/100 — STEADY

Score breakdown: P/E: 0/3 · ROCE: 2/2 · Growth: 0/2 · Dividend: 0/1

Key Financials

Strengths

• Debt-free balance sheet with D/E of 0.00
• High returns: ROE 26.40% and ROCE 33.17%
• Wholesome financial health: FCF ₹1,230 Cr and Piotroski F-Score 7/9
• Profit growth of 30.57% with 5-year revenue CAGR of 11.60%
• Promoter holding at a strong 61.75%

Concerns

• Valuation offers no margin of safety: P/E 37.68, P/B 10.17, price far above Graham Number of ₹22.36 and DCF value of ₹35.33
• Negative EV/EBITDA despite reported net profit needs scrutiny on earnings quality
• Altman Z-Score of 2.37 indicates caution despite zero debt
• PEG ratio of 1.98 suggests growth is fully priced in

AI Analysis

I look at NBCC and see a business with some qualities I admire, but at a price that makes no sense. The balance sheet is clean: zero debt, return on equity of 26.40%, and ROCE above 33% is genuinely impressive. Free cash flow of ₹1,230 Cr supports reported earnings, and the Piotroski score of 7/9 suggests a healthy financial picture. Promoter holding of 61.75% aligns interests. Growth is real but not spectacular: sales grew 13.84% and five-year revenue CAGR is 11.60%. Profit growth of 30.57% is encouraging, but a PEG of 1.98 tells me the market has already priced in much of that. Here is the problem: at ₹93.37, I am being asked to pay 37.68 times earnings and 10.17 times book value. The Graham Number is only ₹22.36, and the DCF estimate of ₹35.33 is far below the market price. That is a negative margin of safety of 314%. Benjamin Graham would call this speculation, not investment. The Altman Z-score of 2.37 is in the grey zone, and the negative EV/EBITDA sends up a red flag about earnings quality behind these numbers. I also note the dividend yield of 0.72% is small compensation while I wait. NBCC may be a fine, steady company; F-score 7 and zero debt prove it isn't a broken business. But a good business is not a good investment at any price. Discipline matters more than excitement. I would wait for a far better price, or a much clearer picture of earnings quality, before committing any capital. Price is what you pay; value is what you get. Today, I do not get enough value for ₹93.37.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer