Buy NCC, target price Rs 89: Geojit

Geojit has buy call on NCC with a target price of Rs 89. The current market price of NCC is Rs 74.3.
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 4664.90 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-2022.


Financials
For the quarter ended 30-06-2022, the company reported a Consolidated Total Income of Rs 3350.91 Crore, down -4.03 % from last quarter Total Income of Rs 3491.76 Crore and up 60.85 % from last year same quarter Total Income of Rs 2083.21 Crore. Company reported net profit after tax of Rs 134.81 Crore in latest quarter.

Investment Rationale
Given strong order book, healthy balance sheet and pick up in execution, the brokerage maintains Buy rating and value at a P/E of 11x on FY23E EPS with a TP of Rs.89.

Promoter/FII Holdings
Promoters held 21.11 per cent stake in the company as of 30-Jun-2022, while FIIs owned 9.77 per cent, DIIs 11.3 per cent.