Buy NCC, target price Rs 103: Geojit

Geojit has buy call on NCC with a target price of Rs 103. The current market price of NCC Ltd. is Rs 78.4. Time period given by analyst is one year when NCC Ltd. price can reach defined target.
NCC Ltd., incorporated in the year 1990, is a Mid Cap company (having a market cap of Rs 4802.54 Crore) operating in Construction sector.

NCC Ltd. key Products/Revenue Segments include Income From Contracts and Other Operating Revenue for the year ending 31-Mar-2021.



Financials
For the quarter ended 30-09-2021, the company reported a Consolidated Total Income of Rs 2600.87 Crore, up 24.85 % from last quarter Total Income of Rs 2083.21 Crore and up 49.17 % from last year same quarter Total Income of Rs 1743.59 Crore. Company reported net profit after tax of Rs 121.29 Crore in latest quarter.


Investment Rationale
The brokerage maintains Buy rating due to strong order book, increased Govt’s infra spending. The brokerage values at a P/E of 11x on FY23E EPS with a TP of Rs103.

Promoter/FII Holdings
Promoters held 19.68 per cent stake in the company as of 30-Sep-2021, while FIIs owned 13.26 per cent, DIIs 11.52 per cent.