As rightly predicted by you NBCC has already doubled. Need your opinion if it is going to be long term bet due to the following events:
Positives on NBCC:
1). With NBCC having Navaratna status, greater autonomy from operational and financial standpoint. Hopefully, some negative aspect of PSU will be taken off.
2). Its asset light business(commission based) model with assured margin of 15%. Warren buffet quote: âI try to buy stock in businesses that are so wonderful that an idiot can run them. Because sooner or later, one will.â
3). NBCC is planning global expansion in countries likeOman,Botswana, Sri Lanka,BangladeshandMyanmar.
4). Debt free company.
Negatives on NBCC:
1). It remains PSU, vulnerable to Govts interference. Ofcourse, with Navaratna status, it is less affected.
2.Less efficient compared to Private companies.
Disclosure: Invested from 150 levels and Positively biased,