ICICI Direct is bullish on NCC has recommended buy rating on the stock with a target price of Rs 120 in its research report dated February 13, 2019.
ICICI Direct's research report on NCC
NCC’s topline grew at a robust 74.3% YoY to Rs 3226.5 crore (our estimate: Rs 2751.6 crore) on account of strong execution in Q3FY19 EBITDA margins contracted 162 bps YoY to 12.2% on account of Rs 73 crore one-off during Q3FY18. Adjusting for this, the EBITDA margin expanded 192 bps YoY and was above our estimate of 11.5% Reported PAT grew robustly by 59.7% YoY to Rs 160.2 crore (our expectation: Rs 122.1 crore) led by strong topline growth and EBITDA margin expansion.
Consequently, we expect PAT to grow at a robust 29.2% CAGR to Rs 656.9 crore in FY18-20E. Hence, we maintain our BUY recommendation with a target price of Rs 120/share.
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