Buy NCC, target price Rs 105: Anand Rathi

Anand Rathi has buy call on NCC with a target price of Rs 105. The current market price of NCC is Rs 68.55.
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 4201.84 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 31-12-2021, the company reported a Consolidated Total Income of Rs 3032.84 Crore, up 16.61 % from last quarter Total Income of Rs 2600.87 Crore and up 41.02 % from last year same quarter Total Income of Rs 2150.69 Crore. Company reported net profit after tax of Rs 83.77 Crore in latest quarter.

Investment Rationale
From the announcements made on the stock exchanges, the Q4 FY22 inflows (at ~Rs3.2bn) appear to have been dull for this, one of the most diversified, company. Nevertheless, healthy additions of ~Rs96bn over 9M FY22 mean full-year additions would still exceed orders executed; thus assurance is likely to stay healthy.

Promoter/FII Holdings
Promoters held 19.68 per cent stake in the company as of 31-Mar-2022, while FIIs owned 8.89 per cent, DIIs 12.25 per cent.