Buy NCC; target of Rs 166: Dolat Capital
Dolat Capital is bullish on NCC has recommended buy rating on the stock with a target price of Rs 166 in its research report dated November 13, 2018.
November 19, 2018 / 03:54 PM IST
Dolat Capital's research report on NCC
NCC posted 138.8% YoY growth in Q2FY19 standalone revenue to `31 bn (34.2% above estimates). EBITDA margin expanded 219 bps YoY to 11.8% (79 bps above estimates) led by lower employee costs and other expenses which was partially offset by construction expenses which increased by 185 bps YoY to 82.5% of revenue. Reported PAT grew 519.0% YoY to `1.3 bn led by strong operating performance. Adj. PAT growth restricted to 118.4% YoY to `1.7 bn (75% above estimates) after adjusting exceptional loss of `475mn vs. `590mn in Q2FY18.
Considering robust revenue growth, expansion in EBITDA margin, healthy profit growth combined with attractive valuation, we maintain BUY on the stock with a SOTP of `166.
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