NCC Share Price: Late billionaire Rakesh Jhunjhunwala-backed multibagger PSU stock sheds 42% in six months; Axis Securities eyes 10% upside: Buy or sell?
Rakesh Jhunjhunwala, a renowned Indian investor, backed NCC, a multibagger PSU stock that has delivered remarkable returns over the past few years. Despite a 42% decline in six months, the stock remains a favorite among investors, with Axis Securities recommending a 10% upside.
Company Overview:
NCC Limited is a leading construction company based in Hyderabad, with a diverse portfolio of projects across various segments, including roads, buildings, irrigation, water, electrical, metals, mining, and railways. With an international presence in Muscat and Dubai, NCC has a strong presence across India and abroad.
Q3 Results:
In the third quarter of the current financial year, NCC reported a consolidated turnover of ₹5,382.86 crore, including other income. The company reported EBITDA of ₹540.90 crore and a net profit attributable to shareholders of ₹193.18 crore, compared to ₹505.41 crore in the year-ago period.
Share Price Trend:
In the previous session, NCC’s share price declined 3.04% to hit an intraday low of ₹186.45, while settling 3.04% lower at ₹186.90 apiece on the BSE. The stock has declined 32% in the past three months and 23% in the last 30 days.
30-Point Analysis:
Based on these trends, analysts at Axis Securities have assigned a ‘buy’ rating on the stock with a target price (TP) of ₹213, implying a 10% upside from the current market price. Here are the key points to consider:
- Robust order book: As of December 31, NCC’s order book stood at ₹55,548 crore across various segments, providing revenue visibility for the next 2-3 years.
- Strong bidding pipeline: The company has a bidding pipeline of ₹2.45 lakh crore across all segments and states, with an expected order inflow of ₹20,000-22,000 crore in FY25.
- Diversified portfolio: NCC’s business portfolio is diversified across T&D, Buildings, Transportation, Water & Railways, Irrigation, and Mining, making it less susceptible to idiosyncratic risks.
Risks:
While the company’s diversification and robust order book are significant positives, delays in project execution and lower order intake are key risks to be considered.
Conclusion:
In conclusion, NCC’s multibagger potential remains intact, despite the recent decline. With a 10% upside potential, according to Axis Securities, this stock is worth considering for long-term investors. However, it is essential to consult with certified experts, consider individual risk tolerance, and conduct thorough research before making investment decisions.
Disclaimer:
The views and recommendations provided in this analysis are those of individual analysts or broking companies, not Mint. We strongly advise investors to consult with certified experts, consider individual risk tolerance, and conduct thorough research before making investment decisions, as market conditions can change rapidly, and individual circumstances may vary.
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