NCC Ltd., incorporated in the year 1990, is a Mid Cap company (having a market cap of Rs 5497.77 Crore) operating in Construction sector.
Financials
For the quarter ended 30-09-2020, the company reported a Consolidated sales of Rs 1708.32 Crore, up 31.65 % from last quarter Sales of Rs 1297.60 Crore and down -11.86 % from last year same quarter Sales of Rs 1938.28 Crore Company reported net profit after tax of Rs 69.74 Crore in latest quarter.
Investment Rationale
NCC has reported a mixed set of numbers in Q3FY21. However, the brokerage now turns constructive on the company given a) the strong order book position, b) expected pick-up in execution, c) stable margins, d) debt reduction, and e) improvement in working capital cycle. Therefore, it upgrades rating from HOLD to BUY with a target price of Rs 110/share (6x FY22E EV/EBITDA) (vs. earlier target price of Rs 65/share).
Promoter/FII Holdings
Promoters held 19.7 per cent stake in the company as of Sept 30, 2020, while FIIs held 9.8 per cent, DIIs 12.2 per cent and public and others 58.3 per cent.
