Geojit has given Buy recommendation for NCC with a target price of Rs. 100 in its research report issued on Jun 08, 2021

Geojit’s research report on NCC

NCC Limited (NCC) is one of the largest well diversified construction companies in India with a foothold in every segment of construction sector. Q4FY21 revenue grew by 20% YoY led by ramp up in execution on account of better availability of workforce. EBITDA margin declined by 179bps YoY to 11.1% due to higher input costs and higher sub-contracting expenses (54% YoY). Order book remain healthy at Rs37,911cr (5.2x FY21 revenue) supported by strong inflow of Rs18,953 in FY21. As per company, the second wave of Covid is expected to impact execution in Q1FY22, but the impact to be lower than the last year. Due to uncertainty NCC has not given any guidance for revenue & margin, but remain positive on long term outlook.


We maintain Buy rating due to strong order book, increased Govt’s infra spending. We value at a P/E of 14x on FY23E EPS with a TP of Rs100.