The stock traded near key support levels this week as investors awaited Q1 results and digested news of a fresh ₹103 crore contract win.
NBCC shares slipped 1.3% on Thursday ahead of its first quarter (Q1) results due Friday, as the stock hovered near key technical levels amid weak momentum.
SEBI-registered analyst Deepak Pal sees long-term promise but flags rich valuations. He said that NBCC shares hovered near the ₹108–₹110 support zone this week, with the stock currently trading close to its 200-day moving average.
Momentum indicators such as relative strength index (RSI) of 42 and moving average convergence divergence (MACD) remain in bearish territory, suggesting caution in the near term, according to Pal.
Pal noted that while a strong breakout is yet to emerge, the technical setup could stabilize if the stock sustains current levels.
He added that the near-term outlook is weak, but long-term investors can consider gradual accumulation with a stop-loss at ₹100.
On the fundamental front, Pal said NBCC has no debt and boasts a healthy return on capital employed (ROCE) of 29–33%, indicating operational strength.
He pointed out that the company’s fourth quarter earnings grew 30% year-on-year, and it has a healthy order book and strong execution.
Pal, however, added that valuations seem stretched with a price-to-earnings of over 50x and a price-to-book of over 12x, which may limit near-term gains.
On the macro front, Pal said recent U.S. tariffs have hurt the broader market sentiment. While NBCC has minimal direct export exposure, infrastructure-related stocks like it may still face indirect pressure if global conditions worsen.
Pal projected that if NBCC manages to hold current levels and builds on its post-results momentum, the stock could target ₹125–₹130 over the next two to three months.
Recently, NBCC secured a ₹103 crore contract from Lokpal of India for repair, retrofitting, and interior work at its Vasant Kunj office in Delhi.
On Stocktwits, retail sentiment was ‘bullish’ amid ‘normal’ message volume.
NBCC’s stock has risen 16.9% so far in 2025.
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