My view on NBCC: Just going by the P/E multiple, the valuation of the company works out to 8.05(for a retail investor @ 100.7) factoring in an EPS of 12.50 for FY12. Competitors like NCC, IVRCL are available at a P/E multiple of around 23. However B/V seems to be a more appropriate multiple to value this company as earnings of most Infra companies are distorted due to an uncertain macro environment. Going by the BV multiple a valuation of 1.52 for NBCC may appear costlier when compared with the likes of IVRCL(P/BV @ 0.96) and NCC(P/BV @ 0.61). However for a company with zero debt, double digit RoE and consistent dividend paying history this seems justified.
"It is difficult to find a single construction or engineering company, which has negative working capital, zero debt, return on equity in double-digits, huge cash in its books and consistent dividend paying history, all under one roof. " - Sourced from Business standard.
Hold on to this counter if you are a long term player!.
This is my first message on this platform. Though I have been reading all the messages in recnt past. At the start may I say that I am a big fan of Sridhar (he is not posting now), Ravi, Alibhoy, Gundu Anna and others. I think that NBCC IPO will give decent retrun as QIB portion was subscribed more than 7 times and retail was relatively low at about 3 times, who spoil the IPO gains. My feeling says that the listing day band would be about 102 - 111. Sorry to differ from Fundu Anna. This is my thought. Only time will prove us right or wrong.
Anybody know what will be the allotment date??? H@t taking too many days..
110. gundu anna| Link |
Apr 4, 2012 7:33:03 PM
Top Contributor (500+ Posts, 100+ Likes)
NBCC IPO unlikely to give major listing gain as PSU's have very negative image in the market now. Some loss cannot be ruled out as it will list in t-to-t segment.
Investors who has invested Rs. 100000/ in ipo/fpo/bonds and Rs.200000/ in mutual funds. Income tax department sending notice undes section 147 and 148, investors be careful.
106.1. Jackpoat| Link |
Apr 3, 2012 8:22:22 AM
(200+ Posts)
Tanks for giving info.but whats abt asba aplicants
RHP
Top Contributor (500+ Posts, 100+ Likes)
