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Last Updated : Aug 09, 2017 02:40 PM IST | Source: Moneycontrol.com

NCC gains post strong Q1; brokerages remain upbeat on stock

The company delivered a strong performance in this quarter. It reported topline growth of 6 percent year on year at Rs 2,010 crore.

 
 
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NCC’s shares gained over 3 percent intraday after the company reported steady figures for the June quarter.

The company delivered a strong performance in this quarter. It reported topline growth of 6 percent year on year at Rs 2,010 crore.

Multiple brokerages have positive views on the stock and see upside as well.

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Brokerage: Edelweiss | Rating: Buy | Target: Rs 110

The brokerage said that the star of the show was the order inflow number.

“Having achieved 60% of its annual order inflow target in first quarter (with additional L1 orders), we believe the management has pacified the biggest concern with the stock – orderbook growth,” the brokerage house said in a report.

The company is also gradually expanding its wings in the metro segment, with the recent order awards of Rs 10 billion in Mumbai and Pune (it is now executing metro projects in five cities).

It now sees an upside risk to FY19 topline growth estimate of 15 percent. “We continue to value the company at 15x FY19 P/E (discount to peers, with superior orderbook and balance-sheet, like PNC, KNR and Ahluwalia),” the report added.

Edelweiss

The brokerage house said that the results show the management’s focus on order book growth. “Going ahead, we believe improving public sector capex will drive NCC’s order book higher, which is key to stock performance,” the report added.

The stock gained over 3 percent in the past three days. At 14:32 hrs NCC was quoting at Rs 90.00, up Rs 0.85, or 0.95 percent on the BSE. It touched an intraday high of Rs 91.95 and an intraday low of Rs 88.70.

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First Published on Aug 9, 2017 02:40 pm
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