NCC Ltd. share price target

NCC Q2FY16 revenue of Rs 20.96bn came higher than our estimate on account of better execution in its key segments and sale of land of worth Rs280 mn. However, it declined 6.6% YoY led by decline in revenue from power projects.

9 Robust topline of Rs 20.9bn (7% yoy) significantly ahead of our (Rs 19bn) and consensus(Rs17.8bn)estimates.ThepowerplantcontributedRs3bntothetoplinein 2QFY16(Rs4bnin1QFY16,Rs31bninFY15)....

The standalone order book stands at Rs 159 bn (~ 2x of FY15 revenues) after the strong order inflow of Rs 12.7 bn in Q1FY16. The three major segments which make up ~ 80% of the order book are buildings (46%), water & environment (~ 22%) and roads (~ 11%). The company expects ~ Rs 80 bn of new order inflow for FY16E (we expect ~ Rs 70 bn) driven by these three segments.

NCC delivered strong 1QFY16 profit beat, 90.5% ahead of our expectation

NCC Ltd. (NCC) delivered strong 1QFY16 profit beat, 90.5% ahead of our expectation (including Rs120mn profit from land sale). Even after adjusting for land sale profits, PAT was 35% ahead of our estimates.

NCC posted 15.6% YoY growth in Q1FY16 standalone sales to Rs17.2bn (after sharp YoY growth of 35.6% in FY15), in-line with our expectations. The growth in sales was driven by better execution in its key business segments such as Water & Environment, Power and Buildings & Roads.

Debt at the end of 1QFY16 stood at Rs 22.2bn (Rs 20bn in 4QFY15). The management expects50bpsreductioninitsLCandBGchargesand100bpsinitsborrowingcostoverthe year on improvement in its credit rating. Cash proceeds from the Nelcast power projects...

NCC posted 15.5% YoY growth in Q4FY15 standalone sales to Rs22.1bn (aftersharp YoY growth of 68.1% and 58% in Q2FY15 and Q3FY15), higher than ourexpectations. The growth in sales was driven by better execution in its keybusiness segments such as Power, Buildings & Roads.

The company reported topline of Rs22.1bn (+16% YoY) HUGE beat to the consensus estimateofRs20.5bn.ThestrongperformanceoverlastthreequartershasenabledNCCto reportFY15toplineofRs82.9bn(+35%YoY).Thegrowthwasprimarilydrivenbyrampupin...

NCC posted 58% YoY growth in Q3FY15 standalone sales to Rs23.5bn (historically highest in a single quarter), higher than our expectations. The growth in sales was driven by better execution in its key business segments such as Power, Buildings & Roads and Water. Moreover, EBITDA margin improved by 125bps to 7.4% (75bps below our expectation), due to lower employee cost (which as a percentage of sales declined to 2.9% vs 4.1% in Q3FY14). Net profit sharply jumped to Rs420 mn (much higher than our expectations) compared to loss of Rs73 mn in Q3FY14, primarily supported by higher revenue growth and 57.3% YoY growth in other income to Rs557 mn. For 9MFY15, top-line grew by 44.8% to Rs60.9 bn; EBITDA margin improved by 49bps to 7.6% leading to more than six fold jump in net profit to Rs611 mn.