IDBI Capital Initiates "Buy" On Infra Stock For 38% Returns, Stock Soars Over 500% In 3 Yrs

IDBI Capital maintains a positive outlook on NCC Ltd. (NJCC) in its recent report. Initiates "Buy" for upto 38% potential gains with an estimated target price of Rs 146/share. The company operates in the Infrastructure sector having a market capitalisation of Rs 6,714.82 crore. Check below to know more:

NCC's Share Price, 52-Week Low/High, & Returns

The last traded share price of NCC is Rs 105.90/share. Its 52 week low is Rs 52.20/share recorded on 20 June 2022 and 52 week high is Rs 108.50/share recorded on 3 April 2023.

The stock gained 17.34% in the past 1 month, however, it declined 0.89% in 1 week. It gave 51.18% positive return in 1 year. It gave a robust positive return of 524.78% in 3 years. In 5 years it gave 18.22% negative return.

IDBI Capital Initiates "Buy" for a Target Price of Rs 146/share

IDBI Capital said, "We initiate coverage on NCC Ltd (NJCC) with a BUY rating, and on base case see a TP of Rs146 (valuing at its historical average of 10x FY25E EPS). NJCC, has pedigree of executing infrastructure project and has seen multiple capex cycle in India. We expect upcycle in its order inflow in FY23E to continue given continued push for infra spend by the government (exh 34-37)."

It added, "Commodities have weekend off-late and this could upkeep its EBITDA margins in FY24E. Balance sheet (BS) largely has working capital debt and NDER at 0.2x could support execution of its order book of Rs419bn (3x FY23E revenue). Stock trades at 7x FY25E EPS and we estimate EPS growth of 22% YoY / 26% YoY in FY24E / FY25E. NJCC PER valuation at 30% discount to it's infra peers (exh 25) could narrow on improved execution. Risk is slow-down in government capital outlay."

About - NCC Ltd.

NCC Ltd, established in 1978 as a partnership firm, is now one of the largest infrastructure conglomerates in India with presence across all major construction segments such as building and housing, roads, water and environment, irrigation, metals, mining and railways. NCC has strong geographical footprint across India and has offices across 13 cities in states such as Maharashtra, Andhra Pradesh, Telangana, Karnataka, Gujarat, Uttar Pradesh etc. and has ~140 active sites as on Sep'22.

Disclaimer - The stock has been picked from the brokerage report of IDBI Capital. Greynium Information Technologies, the Author, and the respective Brokerage house are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to consult with certified experts before making any investment decision.