NCC Ltd
Stock Snapshot
Price Performance
Vista Outlook
View Technicals Analysis →Basis of our Recommendation
NCC Limited's recent performance reflects a resilient execution strategy, achieving record revenues in Q1FY27 despite a challenging macro environment. Management's cautious optimism is underpinned by a robust order book and improved working capital efficiency, particularly from government projects like JJM. The company's strategic focus on high-quality projects and disciplined execution is expected to support revenue growth in the range of 8-10% for FY27. However, risks remain, including potential margin pressures from specific high-value projects and geopolitical uncertainties affecting project timelines. Vista's financial outlook anticipates stable margins and a recovery in revenue growth, supported by a solid book-to-bill ratio of 4.0x. The favorable macro environment, characterized by improving manufacturing indicators and government initiatives for infrastructure development, further bolsters this outlook. Over the next 12-24 months, key opportunities include the successful transition of smart meter projects to an annuity model and continued government investment in infrastructure. Conversely, watchpoints include the impact of commodity price fluctuations and execution challenges in high-value projects. Overall, NCC is well-positioned for steady growth, with a target price of approximately 205.73, reflecting an expected upside of over 21%
Why We Like This Stock
- Robust order book with a book-to-bill ratio of 4.0x supports medium-term growth
- Improved working capital efficiency from government projects enhances cash flow
- Strategic focus on transitioning smart meter projects to a stable annuity revenue model
Things To Watch Out For
- Potential margin pressures from high-value projects like BharatNet due to input cost inflation
- Geopolitical uncertainties may impact project timelines and execution
- Subdued project awards could lead to a shrinking order book if not addressed
Key Parameters
Financial Snapshot
| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 20,845 | 22,199 | 20,823 | 23,033 | 26,459 |
| Profit Before Tax (Cr.) | 1,091 | 1,153 | 986 | 1,153 | 1,321 |
| PBT Margin | 5.2% | 5.2% | 473.5% | 5.0% | 5.0% |
| Net Profit (Cr.) | 763 | 865 | 790 | 925 | 1,060 |
| Earnings Per Share | 12.2 | 13.8 | 12.6 | 14.7 | 16.9 |
Analyst Recommendations
| Broker | Recommendation | Target Price | Date |
|---|---|---|---|
| Elara Capital | ▲ Buy | 180 | 10-Aug-2026 |
| HDFC Securities | ▲ Buy | 239 | 10-Aug-2026 |
| Moneycontrol | ► Equalweight | nan | 18-May-2026 |
| Prabhudas Liladhar | ▲ Buy | 195 | 10-Aug-2026 |
Company Overview
Show Company Profile
NCC Limited operates in the construction business in India and internationally. It operates through the Construction, Real Estate, and Others segments. The company constructs buildings, including hospitals, medical colleges, airports, sports complexes, housing projects, IT parks, and industrial and commercial buildings; transportation projects comprising access-controlled highways, road EPC projects, airstrips, metros, tunnels, bridges, and flyovers; and water and environment projects, such as water supply projects, water treatment plants, water distribution networks, underground drainage, and sewage treatment plants. It also engages in the irrigation projects, including lift irrigation schemes, dams, reservoirs, canals, tunnels, barrages, spillways, and aqueducts; mining projects that consist of overburden removal, coal excavation and transportation, and mine development and operation; railway projects, which include civil EPC, track laying, signaling and telecommunication, dedicated freight corridor, and high-speed rail; and electrical projects comprising transmission and distribution lines, substations, project electrification, and system improvements and smart meters. The company was formerly known as Nagarjuna Construction Company Limited and changed its name to NCC Limited in March 2011. NCC Limited was founded in 1978 and is headquartered in Hyderabad, India.