January 27, 2017 / 15:56 IST
Geojit BNP Paribas' research report on NCC NCC is operating in a well-diversified portfolio and having a presence in every segment of construction sector. The healthy order book of Rs. 18,594cr which is 2.2x TTM provides strong visibility of revenue growth in the coming years. Similarly, the diversified operations across ten divisions help mitigate business risks & also provide competitive edge over its peers at the time of slowdown in any segments.
OutlookStrong order book, easing of balance sheet through asset monetisation and working capital improvement could generate revenue growth going forward. Consequently, we expect PAT to grow at a CAGR of 19% over FY16-19E. We value standalone business at a PE of 12x FY19E earnings, real estate business & BOT projects at 1x P/B and arrive at SOTP price target of Rs 94 with BUY rating.
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