Geojit has given Buy recommendation for NCC with a target price of Rs. 103 in its research report issued on Nov 10, 2021

Geojit’s research report on NCC

NCC Limited (NCC) is one of the largest well diversified construc-tion companies in India with a foothold in every segment of con-struction sector. Q2FY22 revenue grew by 43% YoY (better than estimate) as construction back to normalcy and sites are operating at pre-covid levels. However, EBITDA margin declined by 286bps YoY to 10.8% due to higher commodity prices and higher sub-contracting expens-es (45% YoY). Order book remains healthy at Rs39,112cr (4.5x TTM revenue) supported by a strong inflow of Rs5,611cr in H1FY22. NCC targets to add Rs14,000cr of fresh orders in FY22 due to robust order pipeline. Due to covid led uncertainty NCC has not given any guidance for FY22 but expects execution to pick up in H2FY22. We maintain Buy rating due to strong order book, increased Govt’s infra spending.


We value at a P/E of 11x on FY23E EPS with a TP of Rs103.

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