NCC Ltd. share price target

Nagarjuna Construction (NCC) is one of the largest construction players in India & undertakes civil construction in transportation, water & irrigation, buildings, power, transmission and distribution.

Well-diversified order backlog, robust execution capabilities, proficient management and strong focus on debt reduction and working capital are expected to outline NCC over the next few years Q2FY22 Results: NCC's Q2FY22 performance was on expected lines - strong...

NCC Limited (NCC) is one of the largest well diversified construction companies in India with a foothold in every segment of construction sector. Q2FY22 revenue grew by 43% YoY (better than estimate) as construction back to normalcy and sites are operating at precovid levels. However, EBITDA margin declined by 286bps YoY to 10.8% due to higher commodity prices and higher sub-contracting expenses (45% YoY). Order book remain healthy at Rs39,112cr (4.5x TTM revenue) supported by a strong inflow of Rs5,611cr in H1FY22....

NCC Limited (NCC) is one of the largest well diversified construction companies in India with a foothold in every segment of construction sector. Q4FY21 revenue grew by 20% YoY led by ramp up in execution on account of better availability of workforce. EBITDA margin declined by 179bps YoY to 11.1% due to higher input costs and higher sub-contracting expenses (54% YoY). Order book remain healthy at Rs37,911cr (5.2x FY21 revenue) supported by strong inflow of Rs18,953 in FY21. As per company, the second wave of Covid is expected to impact...

NCC reported a decent set of numbers in Q4FY21 with revenue growth of 20% YoY to | 2617.7 crore on a standalone basis. The topline growth was mainly driven by strong order book position and pick-up in execution. However, operating margin declined 179 bps YoY to 11.1% owing to higher sub-contracting expenses. Consequently, operating profit improved merely 3.3% YoY to | 289.7 crore. At the net level, a decent operating performance coupled with benign depreciation and interest cost has translated into 11.4%...

impacted at 10-15% below pre-covid levels in Apr-May'21. NCC reported strong quarterly numbers as revenues came in above our and street estimates owing to ramp in execution across its project sites. However, Liquidity position continues to remain robust on the back of reduced debt (Rs1.2bn in FY21), lower rate Covid loans and reduced performance BG requirements. Management expects the working capital levels to ease further as group companies' exposure is expected to reduce in FY22 (Rs1.6bn reduction in FY21) and receivable from AP Govt. for stalled projects (Rs1.2bn...