NCC Ltd. share price target

Q1 Adj. PAT grew by 103% YoY supported by strong operational performance & higher other income. Order book grew by 49% YoY (4.2x TTM revenue) led by strong inflow in electrical business and solid building & road order book....

We maintain BUY with increased TP of Rs 174/sh. NCC Ltd. (NCC) delivered robust 1QFY19 financial performance with net profit beat of 34.6% largely driven by EBIDTA margins expansion of 285bps YoY to 11.3%. NCC is realizing margin gains largely driven by gross margins expansion and has guided for sustaining it around 11.5% mark.

ICICI Securities Ltd | Retail Equity Research NCC's topline grew strongly by 17.2% YoY to | 2359.6 crore (our estimate: | 2377.1 crore) due to healthy execution during the quarter EBITDA margins expanded significantly by 290 bps YoY to 11.3% (our...

We maintain BUY with a SOTP TP of Rs 159/sh. NCC FY18 has been a mixed bag with big positive surprises from (1) lifetime high order inflows of Rs 253bn (2) adjusted EBIDTA margins expansion by 172bps to 10.4% (multiyear highs) & (3) reduction in debt to Rs 13bn (0.29x net D/E, aided by Rs 5.5bn QIP).

NCC standalone received historic high order inflow of `247bn in FY18 which is more than 3x received in FY16 (`74bn) / FY17 (`77bn). This lead to highest ever standalone order book of `299.9bn providing robust 4x FY18 revenue visibility. ~92% of FY18 order inflow is in its core segments (Buildings & Roads' and Water') and compression of execution timeline to...

NCC is operating in a well-diversified portfolio and having a presence in every segment of construction sector. The healthy order book of Rs.32,532cr(80% growth YoY) which is 4.3x FY18 revenue provides strong visibility. FY18 order inflow grew by 174% YoY to Rs.25,304cr and out of which 50% of orders are short cycle orders. The increased spending by government in key infrastructure space will...

We maintain BUY with a SOTP TP of Rs 159/sh. NCC Ltd. (NCC) 4QFY18 revenues (after adjusting one time claims) came in at Rs 23.5bn (+9.6%YoY, +31.9% QoQ). FY18 revenues (adjusted for Rs 730mn bonus & Rs 500mn claims) came in at Rs 74.4bn. EBITDA margins for FY18 (10.4%) signaled a sustained movement upwards considering the order book mix.

Aided by strong order book and improved execution, NCC has reported a strong performance in 4QFY18, with its revenue rising by 12% YoY and 29% QoQ to Rs23.9bn (marginally ahead of our estimate). EBITDA sharply surged by 75% YoY and 19% QoQ to Rs3bn (vs. our estimate of Rs2.5bn) owing to an incremental EBITDA of Rs210mn from arbitration amount received from NHAI (Rs500mn impact on revenue). EBITDA margin stood at 12.7% compared to 8.1% and 13.8% in 4QFY17 and 3QFY18, respectively. Adjusted net profit grew by 29% YoY and 2% QoQ to Rs1.2bn. Notably, its debt declined by Rs2.8bn to Rs13bn during the quarter. With fresh orders worth Rs233bn in FY18 (vs. Rs92bn in FY17), its outstanding order book now stands...

ICICI Securities Ltd | Retail Equity Research NCC's topline grew 11.9% YoY to | 2394.8 crore (our estimate: | 2376.0 crore) possibly due to healthy execution during the quarter EBITDA margins expanded 460 bps YoY to 12.7% (our estimate: 9.3%) due to lower other expenses (32.9% in Q4FY18 vs. 37.8% in Q4FY17) PAT grew robustly by 61.2% YoY to | 102.7 crore (our expectation: | 78.5 crore) despite an exceptional loss of | 30 crore mainly due to robust EBITDA margin expansion and strong topline growth...

EBITDA margin improved by 463bps YoY to 13.8% as NCC has received an early completion bonus of Rs73cr, while excluding the same margins stood at 10.2% which is above our estimate....