Hold NCC: target of Rs 75: ICICI Direct

ICICI Direct's research report on NCC

NCC is one of the leading construction companies in India with a presence across varied verticals of infrastructure space such as buildings, roads, water, mining and electrical. Standalone order book is robust at Rs 37.838 crore. Well-diversified order backlog, robust execution capabilities and strong focus on debt reduction, working capital to characterise NCC over next few years.

Outlook

While strong execution traction is a positive surprise, we await stability in margins and consistency in leverage management. Thus, we maintain HOLD rating on the stock. We value NCC at Rs 75/share (at 9x FY24 P/E).