Public sector’s major construction company NCC LTD shares have declined by 42% in the last six months, but despite this it remains a center of attraction for multibagger stock investors. The stock, supported by late Big Bull Rakesh Jhunjhunwala, has given a return of 193% in the last three years and 347% in five years.
On Friday, the stock rose by 2.5% to an intra-day high of Rs 197.70, but later closed at Rs 186.45 with a decline of 3% due to profits. There has been a decline of 32% in three months and 23% in the last 30 days.
Illegal construction by Pakistan on Rajasthan border, BSF protested
NCC’s December quarter results
- In the third quarter of the current financial year, the company’s total business was ₹ 5,382.86 crore (including other income), which was ₹ 5,287.74 crore in the same quarter of the previous year.
- Ebitda ₹ 540.90 crore, while net profit was ₹ 193.18 crore.
- An increase in net profit was recorded as compared to the previous year.
Brokerage opinion: recommendation of purchases on NCC
- Rekha Jhunjhunwala has a 10% stake in NCC (6,67,33,266 shares).
- Axis Securities has given a ‘BUY’ rating on NCC and set a target price of Rs 213, which is 10% higher than the current price.
- According to analysts, this stock is trading at 15x/13x/10x EPS in FY25E/FY26e/FY27E respectively.
NCC business and international presence
NCC LTD is one of the most diverse construction companies in India, which works in areas such as roads, buildings, irrigation, water supply, energy, metal, mining and railways.
The company is present in Muscat and Dubai besides India, where it is working through its subsidiaries.
