Hold NCC with a target of Rs 55-58: Agarwal

Rajesh Agarwal, Eastern Financiers is of the view that hold NCC with a target of Rs 55-58.

Agarwal told CNBC-TV18, “If you look at the fundamentals of NCC, it has presence across all key infrastructure segments be it power, road, buildings, irrigation and the numbers have been quite okay. First quarter revenues were up by 12%, even the interest costs have gone down by around 30%. The company is looking at aggressively cutting down its debt and with softening interest rate regime in the near future and with government’s focus in infrastructure projects being revived think it is time to buy this stock rather than selling it."

 

He further added, "I would suggest holding onto the stock with a medium-term target of around Rs 55-58. One should hold onto the stock. Even on the valuation front it is trading at a price to book of 0.45 which is quite attractive. Book profit around Rs 55-58 and re-enter when it corrects from that levels.