Growth likely to accelerate from FY27, as the company retains order inflow guidance for FY26
Despite a weak Q1, NCC has retained the guidance for FY26 growth and order inflow
NCC received record order inflows in Q4FY25 and emerged L1 (lowest bidder) in several projects. It has indicated strong order inflow for FY26, indicating that infrastructure development opportunity remains huge.
The company has already carved a niche in the road construction space. Its diversification into newer segments is also yielding results and it boasts of a huge order book in the infrastructure segment
NCC has retained its FY25 order inflow guidance of Rs 20,000-22,000 crore, indicating a strong pick-up in new orders in the second half
The company stands to benefit immensely from the revival of the Amaravati city project. It is also projecting a strong order inflow for FY2025, and has a robust and a well-diversified order book.
Higher public capex allocation in the domestic market and a rebound in the international market are the expected growth levers
Budget 2024-25: Railways, Defence and Highways are expected to remain the key focus areas of capital spending. These three sectors together are expected to contribute about 63 percent to the overall budgetary spend
The company has guided to order inflows of about Rs 6,000 crore this fiscal
NCC continued its winning streak in the March quarter, as it bagged orders taking the total order value to Rs 27,283 crore, secured in 2023-24.
NCC’s current order book, which is among the highest in the infrastructure space should lead to continued healthy growth over the medium to long run
The near-term delay in the awarding of projects is likely to have a minimal affect on NCC, given its large and diversified order book which is amongst the highest in infrastructure space.
With the highest-ever order book and a robust balance sheet, NCC is on course for strong growth over the medium term.
Orders in hand have jumped, execution has been robust, and domestic capex cycle continues to grow
Order inflow in H1FY24 is now close to the entire new order wins last fiscal. With a strong balance sheet, we are confident of NCC’s capabilities to execute its huge order book.
NCC, with its diverse order book and track record in the execution of varied infrastructure projects, would be the prime beneficiary of the govt’s increased spend on infrastructure.
PNC Infratech has guided to a strong order inflow in the current fiscal, which, coupled with its healthy order book, brightens its growth outlook. PNC remains our preferred bet in the construction space
We expect company to maintain strong momentum driven by huge growth opportunities and financial prudence. Further, diversification into newer areas would reduce the concentration risk and enable re-rating of the stock.
Strong order wins, continued robust execution in H2FY23 and improvement in margins owing to the correction in raw material prices are positives for NCC to maintain strong earnings growth momentum
The company further said it did not received any communication from the government on the issue.