Analysts increased state-run NBCC Ltd.'s target price 15 times—the highest upgrades for an infrastructure company—in the last 12 months. It beat that on every occasion, and still has room to move higher.
Ten out of the 13 analysts tracked by Bloomberg have a ‘Buy' rating on the stock, with a consensus upside of nearly 25 percent. It also commands a premium over its peers, trading 34 times its expected earnings for 2018-19.
The reason for the bullishness: NBCC's order backlog that stands at an-all time high of Rs 80,000 crore, according to Antique Broking. It will translate into a 47 percent annualised growth in five years.
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