NBCC's shares have been climbing for the last one year. On October 7, they jumped over 10 percent and hit their new all-time high of Rs 291 after global financial services firm Bank of America Merrill Lynch initiated coverage on the stock with 'Buy' and set the target price of Rs 330, up 25 percent from the close of Rs 264 on October 6. BofAML believes that NBCC's premium valuation may sustain owing to strong growth visibility, robust FCF (free cash flow) generation and continued order win. "We value NBCC at 35x FY20E EPS at a PEG (price/earnings to growth ratio) of 1. Optically, valuations are expensive given multiple premium and disappointing growth in the past. However, a robust 36 percent EPS CAGR and 7-8 percent FCF yield coupled with a net cash balance sheet and over 50 percent ROE (return on equity) would sustain premium valuation," BofAML said. Recently, NBCC bagged Rs 400 crore contract to reconstruct Manora Aamdar Niwas building at Nariman Point in Mumbai.