NCC Ltd. share price target

NCC's strong order book is well diversified across segments and geographies and lends revenue visibility over the next 2 years. Apart from 2-3 months delay in some projects, NCC does not envisage execution to suffer as a result of the elections. We expect net working capital levels to remain stable (100days) leading to strong free cash flows of ~Rs 3.3/5.1bn in FY20/21E. We have built in muted APAT growth over FY20-21E led by high interest costs, depreciation and pressure on margins. Re-rating is contingent on the pace of reduction of the ~Rs 13.9bn group exposure and real estate monetization. We maintain BUY. Key risks (1) Adverse ruling on ongoing arbitrations; (2) Slow down in government capex; (3) Deterioration in NWC days; and (4) Weak real estate monetization. We maintain BUY on NCC with a TP of Rs 170/Sh (EPC business at 15x FY21E EPS). We have tweaked our finance cost estimate lower and increased our FY20/21E EPS by 2.2/0.4%.

Q3FY19 revenue grew by 74% YoY supported by strong execution in road, building and electrical division. EBITDA margin stands at 12.2% YoY due to surge in execution of...

We maintain BUY with an increased TP of Rs 184/sh (previous TP 175). NCC Ltd. (NCC) reported robust 3QFY19 revenue of Rs 32.3bn (13% beat). EBIDTA margin expanded 119bps YoY to 12.2% (vs ~11.5% guidance) owing to higher revenue contribution from the electrical division (which has better margin). APAT came in at Rs 1.6bn (25% beat).

ICICI Securities Ltd | Retail Equity Research NCC's topline grew at a robust 74.3% YoY to | 3226.5 crore (our estimate: | 2751.6 crore) on account of strong execution in Q3FY19 EBITDA margins contracted 162 bps YoY to 12.2% on account of | 73 crore one-off during Q3FY18. Adjusting for this, the EBITDA margin expanded 192 bps YoY and was above our estimate of 11.5% Reported PAT grew robustly by 59.7% YoY to | 160.2 crore (our...

On a standalone basis, the company's debt increased sequentially by about Rs5bn to Rs21.6bn, led by increase in working capital requirements. We have revised our revenue/PAT estimates by 10%/19% and 5%/11% for FY19 and...

Q2FY19 top-line grew by 139% YoY (above estimate) supported by ramp up in execution of solid order book. EBITDA margin improved by 220bps YoY to 11.8% led by pick up in execution while adj. PAT grew by 118% YoY....

Maintain BUY with increased Rs 168/sh TP. NCC Ltd. (NCC) delivered a strong 2QFY19 financial performance with net profit beat of 98% largely driven by EBIDTA margins expansion of 220bps YoY to 11.8%. Execution was 29% above estimate at Rs 31bn, despite the monsoon quarter generally being seasonally weak.

ICICI Securities Ltd | Retail Equity Research Ramp-up in execution to drive profitability NCC's topline grew at a robust 138.8% YoY to | 3104.8 crore (our estimate: | 2126.5 crore) on account of strong execution in Q2FY19 EBITDA margins expanded significantly by 221 bps YoY to 11.8% (our...

NCC posted 138.8% YoY growth in Q2FY19 standalone revenue to `31 bn (34.2% above estimates). EBITDA margin expanded 219 bps YoY to 11.8% (79 bps above estimates) led by lower employee costs and other expenses which was partially offset by construction expenses which increased by 185 bps YoY to 82.5% of revenue. Reported PAT grew 519.0% YoY to `1.3 bn led by strong operating performance. Adj. PAT growth restricted to 118.4%...

NCC Ltd. (NJCC) reported a stellar performance in 2QFY19 as well with its revenue and adjusted PAT growing by 138% YoY and 167% YoY, respectively mainly underpinned by better execution and higher-than-expected operating margin. Its reported revenue stood at Rs31bn (+32% QoQ). While EBITDA grew by 194% YoY to Rs3.65bn, EBITDA margin rose by 220bps YoY and 41bps QoQ to 11.8%. The Company secured orders worth Rs83.6bn during the 1HFY19 taking its total order book to Rs330bn (4.4x of FY18 revenue). While finance cost increased by 22% YoY to Rs1bn led by ~Rs3.6bn increase in gross debt during 1HFY19 and higher interest on mobilisation advances. APAT grew by 164% YoY to Rs1.57bn mainly led by strong operating...