Buy NCC; target of Rs 115: ICICI Direct
ICICI Direct is bullish on NCC has recommended buy rating on the stock with a target price of Rs 115 in its research report dated April 18, 2017.
ICICI Direct's report on NCC
Recently, India Ratings & Research (Ind-Ra) has upgraded NCC’s long term issuer rating to ‘IND A-‘ from ‘IND BBB+‘ and maintained a stable outlook. Going forward, this should help the company reduce the cost of borrowing leading to interest cost savings, which could improve its profitability.
We like NCC given its better financial position compared to other players, which would allow it to capture strong opportunities in the infrastructure space, going ahead. Consequently, we expect its bottom line to grow at 15.8% CAGR to Rs 323.2 crore over FY17E-19E. We maintained our BUY recommendation on the stock with a revised target price of Rs 115/share.
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