Buy NCC, target price Rs 86.5 : HDFC Securities

HDFC Securities has buy call on NCC with a target price of Rs 86.5. The current market price of NCC is Rs 82.15. HDFC Securities recommended to keep stop loss at Rs 79.

NCC, incorporated in the year 1990, is a Mid Cap company (having a market cap of Rs 5154.62 Crore) operating in Construction sector.

NCC key Products/Revenue Segments include Income From Contracts and Other Operating Revenue for the year ending 31-Mar-2022.


Financials
For the quarter ended 30-09-2022, the company has reported a Consolidated Total Income of Rs 3405.00 Crore, up 1.61 % from last quarter Total Income of Rs 3350.91 Crore and up 30.92 % from last year same quarter Total Income of Rs 2600.87 Crore. Company has reported net profit after tax of Rs 136.87 Crore in latest quarter.

The company’s top management includes Mr.Hemant M Nerurkar, Mr.O P Jagetiya, Mrs.Renu Challu, Dr.A S Durga Prasad, Mr.A V N Raju, Mr.J V Ranga Raju, Mr.A S N Raju, Mr.A G K Raju, Mr.A A V Ranga Raju, Mr.Utpal Sheth. Company has S R Batliboi & Associates LLP as its auditors. As on 30-09-2022, the company has a total of 63 Crore shares outstanding.

Investment Rationale
After sharp correction from recent swing high of Rs 96.9, stock tested 50 days SMA and reversed north.

Promoter/FII Holdings
Promoters held 21.99 per cent stake in the company as of 30-Sep-2022, while FIIs owned 9.77 per cent, DIIs 13.1 per cent.