Shares of NCC Ltd gained after two sessions of fall in a highly volatile market today. The stock of the Hyderabad-based construction company gained 2.1% intraday to Rs 72.95 against the previous close of Rs 71.45 on BSE. Rekha Jhunjhunwala, the wife of late investor Rakesh Jhunjhunwala held 10.79 per cent stake or 6.77 crore shares of NCC Ltd for the quarter ended September 2022.
Shares of NCC were trading higher than the 5-day, 20-day, 50-day, 100-day and 200-day moving averages. The share has lost 9% in one year and risen 3.56% since the beginning of this year. In a month, the share has gained 5.51%. Market cap of the firm rose to Rs 4,573.86 crore on BSE. Total 2.81 lakh shares of the firm changed hands amounting to a turnover of Rs 2.02 crore on BSE.
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Currently, NCC stock is trading 42.84 per cent higher compared to the 52-week low of Rs 51 hit on June 21, 2022. The stock touched a 52-week high of Rs 82.90 on November 16, 2021. The firm announced a 15 per cent rise in net profit to Rs 131 crore in Q2 against Rs 113.91 profit in the corresponding quarter of the previous fiscal.
Sales climbed 30.68 percent to Rs 3373.43 crore in Q2 against Rs 2581.37 crore profit in the corresponding quarter of the previous fiscal. Earnings per share (EPS) gained 12.37 per cent to Rs 2.09 in the last quarter against Rs 1.86 in the second quarter of the previous fiscal. On a quarter-on-quarter basis, profit rose 1.05 percent from Rs 129.74 crore. Sales climbed 1.57% from Rs 3,321.35 crore.
Centrum Broking has assigned a target price of Rs 116 to the NCC stock after the Q2 earnings. That is 61 per cent higher than the market price of Rs 72 on November 9.
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Assigning a buy call to the stock, the brokerage said NCC’s Q2FY23 profit after tax at Rs 120 crore beat estimate of Rs 100 crore led by marginally higher execution, higher other income and lower tax rate. “NCC has been able to maintain its average debt levels at Rs 1,800 crore – Rs 2,000 crore even as execution continues to improve which indicates incrementally NWC intensity is improving. Favourable outcome of Sembcorp arbitration remains a key stock trigger. We introduce FY25 estimates and value the stock at 11 times average FY24-25 EPS to arrive at a target price of Rs 116. Maintain BUY,” Centrum Broking said.
HDFC Securities has assigned a target price of Rs 109 to the NCC stock against the market price of Rs 72.15 on November 10. “NCC has guided that it will bring the gross standalone debt to Rs 1500 cr by Q4FY23. Given the robust order book, pick-up in execution, stable balance sheet, and commodities price correction, we maintain a BUY on NCC, with a target of Rs 109 (9 times Sep-24E rolled over),” said the brokerage.