NCC Ltd
Stock Snapshot
Price Performance
Vista Outlook
Basis of our Recommendation
NCC Limited's management has expressed cautious optimism regarding the company's growth trajectory, emphasizing a strong order book of Rs 83,004 crore and a strategic pivot towards private sector contracts to mitigate reliance on government projects. The focus on timely execution of key projects, such as the smart meter rollout, is critical for converting backlog into cash flows, which aligns with Vista's forecast of stable revenue growth and margins. Despite challenges like commodity price volatility and regulatory hurdles, the company's disciplined approach to project selection and working capital management supports a favorable outlook. The infrastructure sector's expansion, driven by government capex and a recovery in project awards, further underpins Vista's positive valuation assessment, with an expected upside of approximately 26.7%. Over the next 12-24 months, NCC's ability to navigate execution risks and maintain operational efficiency will be pivotal, while opportunities in emerging industrial corridors and smart townships present potential growth avenues. However, headwinds such as geopolitical uncertainties and competitive pricing pressures warrant close monitoring
Why We Like This Stock
- Strong order book of Rs 83,004 crore provides a solid foundation for revenue growth
- Strategic focus on diversifying into private sector contracts reduces reliance on government projects
- Improved working capital management enhances cash flow stability
Things To Watch Out For
- Commodity price volatility poses risks to profit margins
- Geopolitical uncertainties may impact project execution and funding
- Competitive pricing pressures could affect margins in certain segments
Key Parameters
Financial Snapshot
View Technicals Analysis →| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 20,845 | 22,199 | 20,823 | 23,022 | 26,057 |
| Profit Before Tax (Cr.) | 1,091 | 1,153 | 986 | 1,160 | 1,310 |
| PBT Margin | 5.2% | 5.2% | 4.7% | 5.0% | 5.0% |
| Net Profit (Cr.) | 763 | 865 | 790 | 930 | 1,050 |
| Earnings Per Share | 12.2 | 13.8 | 12.6 | 14.8 | 16.7 |
Analyst Recommendations
| Broker | Recommendation | Target Price | Date |
|---|---|---|---|
| CLSA | ▲ Buy | 216 | 07-Sep-2026 |
| Elara Capital | ▲ Buy | 180 | 10-Aug-2026 |
| HDFC Securities | ▲ Buy | 239 | 10-Aug-2026 |
| Prabhudas Liladhar | ▲ Buy | 195 | 10-Aug-2026 |
| Moneycontrol | ► Equalweight | nan | 18-May-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, institutional buildings, sports complexes, housing projects, IT parks, hospitals, stadiums, and industrial and commercial buildings; transportation projects comprising construction of expressways and highways, highway realignment and bypass, carriageway widening and strengthening, road sections, rehabilitation and up-gradation, runways, metro projects, bridges, and flyovers; and water and environment projects, such as water supply pipelines, water treatment plants, water distribution networks, river intake works, underground drainage networks, lift irrigation schemes, sewage pumping stations and treatment plants, and storage tanks. It also engages in the irrigation projects, including dams, reservoirs, canals, tunnels, barrages, spillways, hydroelectric power projects, 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, system improvements, smart meters, optical fibre, and allied systems. 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.