Buy NCC; target of Rs 262: ICICI Securities

ICICI Securities's research report on NCC

NCC has a strong orderbook at INR 701bn with book-to-bill ratio of 3.7x TTM revenue – one of the highest in the industry. It has already bagged orders worth INR 65bn in FY26-YTD with guidance of INR 220bn OI for FY26. Given the robust order pipeline of INR 2.5trn, we estimate NCC to meet its guidance comfortably. However, execution remains key which impacted Q1FY26 earnings, resulting in revenue at INR 44bn (-7% YoY), EBITDA at INR 4bn (-10% YoY) and PAT at INR 1.9bn (-5% YoY). With INR 200bn of orderbook (30% of total OB) in mobilisation stage and expected to start executing from H2FY26 - we estimate the remainder of fiscal to deliver at least 15% growth in revenue with margin at ~9%. We expect earnings CAGR of 15% over FY25–27E. Maintain BUY with TP of INR 262.

Outlook

We estimate NCC’s revenue and EPS to grow at CAGRs of 14% and 16%, respectively, over FY25–28E. We reiterate BUY with TP of INR 262 (unchanged).