Accumulate NCC; target of Rs 73: PLilladher

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Accumulate NCC; target of Rs 73: PLilladher

Prabhudas Lilladher is bullish on NCC and has recommended accumulate rating on the stock with a target of Rs 73 in its August 12, 2011 research report.

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Prabhudas Lilladher is bullish on NCC and has recommended accumulate rating on the stock with a target of Rs 73 in its August 12, 2011 research report.

"NCC in Q1FY12 has reported Rs11.4bn as topline, posting growth of 5.1% YoY and was in line with our expectations. On a consolidated basis, revenues stood at Rs15.9bn, higher by 17.3% YoY on account of inclusion of OB BOT. NCC Dubai and NCC Muscat has contributed close to Rs1.4bn to PAT. NCC Urban has reported a sale of Rs5bn."

"EBITDA margins at 10.2% improved by 53bps YoY was above our expectations. On consolidated basis inclusion of BOT revues increased the EBIDTA margins to 21% from company level margins of 9.5%. Interest at Rs640m in Q1FY12 continued to soar this time by 118% YoY and 11% QoQ on account of increased interest rates. Thus, PAT for Q1FY12 de-grew by 43% YoY and 35% QoQ, at Rs233m, this was below our expectation of Rs395m. On a consolidated basis, also, PATAMI de-grew by 44.5% YoY at Rs312m. The current order book stands at Rs162bn and order inflow for Q1FY12 stood at Rs14bn. The company's equity commitment for FY12 stands at Rs2.5bn."

"We have downgraded our earnings on the back of slower execution and increased costs. At CMP the stock is trading at a core P/E of 4.3x FY13E. Maintain 'Accumulate'," says Prabhudas Lilladher research report. 

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