Budget 2021 Stocks With Anil Singhvi – Want to BUY a Budget stock? NBCC is that stock! Market Guru explains why

Top Stock to Buy with Anil Singhvi – NBCC: In line with Zee Business' endeavor to bring a top Budget 2021 pick on a regular basis, today we bring another stock that would earn bumper returns for the investors till Budget 2021 is announced and also beyond it. Research Analyst Ashish Chaturvedi picks NBCC as he tells Managing Editor Anil Singhvi why this stock is poised for high growth.    

NBCC is into the business of developing infrastructure and real estate. The company has a strong order book worth Rs 83,000 cr which is indicative of the revenue stream for the next 3-4 years, he said. The game changer for NBCC will however be its Project Management Consultancy segment. The government land bank development will remain a key trigger for the company.  

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NBCC Stock Valuations  

The valuations of NBCC are very reasonable. The market capitalisation of this company is around Rs 5780 cr. The company has zero debt which augurs well for the company. The company has a cash reserve of Rs 4,700 cr. Even if the valuations are considered on the basis of FY22 forward EPS basis, the valuations are very cheap and available at a PE multiple of 15. If one adjusts it with the cash and orderbook, the valuations further come down and are available at a PE multiple of 8. In terms of price, it is very cheap.   

NBCC share price is currently trading around Rs 32 on NSE. 

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Anil Singhvi’s View on NBCC   

The Market Guru said that if one is considering buying only one stock from the budget point-of-view, then this is the stock to buy. It doesn’t usually happen that a company’s name is mentioned in the budget document. But, NBCC’s name is mentioned in budget documents. It appeared last year and is likely to appear this time too, Singhvi said. 

A fund of around RS 8000 cr was created for this company last year to revive those real estate projects of private builders which have been stuck. It is expected that the fund would get doubled this year. This could be a big game changer for the NBCC.  

They will also get orders from the governments to develop their land banks. The order book will be very strong even in future.  

The valuations of NBCC stock are cheap, and it is not only debt free but also cash rich. The budget will be a big trigger for this stock. It may even reach Rs 40 in the next few weeks, the Managing Editor said.