NBCC's rise depends on project execution, analysts slash FY20 estimates

With redevelopment projects suffering, it is not surprising that the company's profitability is dented

The NBCC stock has corrected almost 44 per cent since its March highs and by 72 per cent since its peaks in November 2017. While the company has a strong order book, slow progress on execution has hit profit growth and disappointed investors. The company’s order book, largely from project consultancy management (PMC) of the government, is pegged at Rs 80,000 crore, which is more than 8x it's FY19 revenues. In addition to this, it expects orders worth Rs 5,000 crore each in December and March quarters.

Given the execution issues, the company’s September quarter revenues declined about 30.6 per cent