February 14, 2017 / 13:53 IST
HDFC Securities' research report onNCC NCC Ltd. (NCC) delivered APAT beat largely on account of an Rs 193mn reduction in YoY interest costs. On the balance sheet front, gross debt is stable at Rs 20.6bn (-Rs 173mn QoQ) and net D/E stood at 0.55x. Debtors increased to 76 days vs. 70 days in 2QFY17. 9MFY17 standalone order inflow stood at Rs 62.6bn ex-L1/subsidiary orders of Rs 30/30.5bn.
Outlook
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Earnings quality is improving with asset monetisation and lower interest costs. We have cut FY18-19E revenue/EPS forecast by 8-14%, to factor in back-ended orders. Stable debt and working capital will help drive execution. Maintain BUY. Roll forward with SOTP valuation of Rs 100/sh.
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