Hold NCC; target of Rs 84: ICICI direct

ICICI direct’s research report on NCC (NAGCON)NCC’s topline de-grew 6.6% YoY toRs.2096.4 crore ahead of our estimate ofRs.1522.5 crore, implying better-than-expected execution in Q2FY16.  EBITDA margins expanded 72 bps YoY to 8.8%. However, there was a gain ofRs.25 crore on sale of land parcel. Adjusting for this, the EBITDA margin came at 7.6%.  The bottomline zoomed 148.6% YoY toRs.55.0 crore ahead of our estimate ofRs.27.6 crore mainly due to a better-than-expected topline show and higher other income (Rs.51.5 crore in Q2FY16 vs.Rs.38.7 crore in Q2FY15Outlook and ValuationThough we like NCC given its better execution & comfortable leverage position, we see limited upside at the current levels. Hence, we have a HOLD recommendation on the stock with an SOTP based target price ofRs. 84. We believe any correction in the stock should

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