⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
NCC - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.8
| Stock Code | NCC | Market Cap | 9,228 Cr. | Current Price | 147 ₹ | High / Low | 242 ₹ |
| Stock P/E | 14.4 | Book Value | 121 ₹ | Dividend Yield | 1.50 % | ROCE | 20.1 % |
| ROE | 10.7 % | Face Value | 2.00 ₹ | DMA 50 | 152 ₹ | DMA 200 | 183 ₹ |
| Chg in FII Hold | -1.38 % | Chg in DII Hold | -1.35 % | PAT Qtr | 106 Cr. | PAT Prev Qtr | 102 Cr. |
| RSI | 48.5 | MACD | -1.85 | Volume | 31,99,921 | Avg Vol 1Wk | 32,67,173 |
| Low price | 135 ₹ | High price | 242 ₹ | PEG Ratio | 0.54 | Debt to equity | 0.28 |
| 52w Index | 10.9 % | Qtr Profit Var | -42.6 % | EPS | 9.37 ₹ | Industry PE | 15.2 |
📊 Financials
- Revenue & Profitability: PAT rose slightly from ₹102 Cr. to ₹106 Cr., but quarterly variation shows -42.6% decline, indicating volatility. EPS at ₹9.37 is modest.
- Margins & Returns: ROCE (20.1%) is healthy, while ROE (10.7%) is moderate, reflecting average shareholder returns.
- Debt: Debt-to-equity ratio of 0.28 indicates low leverage, ensuring financial safety.
- Cash Flow: Stable due to controlled debt and consistent profitability.
💹 Valuation
- P/E Ratio: 14.4 vs Industry PE of 15.2 → Fairly valued compared to peers.
- P/B Ratio: ~1.21 (Price ₹147 / Book Value ₹121) → Reasonable valuation.
- PEG Ratio: 0.54 → Attractive, growth justifies valuation.
- Intrinsic Value: Current price appears close to fair value, offering balanced risk-reward.
🏢 Business Model & Competitive Advantage
- NCC operates in construction and infrastructure development, with diversified projects across sectors.
- Competitive advantage lies in execution capabilities and government contracts.
- Dividend yield of 1.50% provides decent shareholder returns.
📈 Entry Zone & Long-Term Guidance
- Entry Zone: Attractive near ₹135–145 range (close to 52W low of ₹135 and below DMA levels).
- Long-Term Holding: Suitable for investors seeking exposure to infrastructure growth. Accumulation at lower valuations is recommended.
✅ Positive
- Fair valuation compared to industry peers.
- Low debt ensures financial safety.
- Dividend yield of 1.50% supports investor confidence.
⚠️ Limitation
- ROE at 10.7% is modest compared to peers.
- Quarterly profit decline (-42.6%) signals near-term weakness.
- Technical indicators (MACD -1.85) show bearish momentum.
📉 Company Negative News
- FII holdings reduced (-1.38%), showing cautious foreign sentiment.
- DII holdings reduced (-1.35%), reflecting weaker domestic institutional support.
📈 Company Positive News
- PAT improved slightly compared to previous quarter.
- PEG ratio of 0.54 highlights strong growth potential.
- Debt-to-equity ratio of 0.28 ensures financial stability.
🏭 Industry
- Construction and infrastructure industry benefits from government spending and urban development.
- Industry PE at 15.2 suggests valuations are moderate, aligning NCC fairly with peers.
🔎 Conclusion
- NCC is fundamentally stable with fair valuation, low debt, and decent efficiency.
- However, modest ROE and profit volatility limit upside potential.
- Best strategy: Accumulate near ₹135–145 range for long-term holding, while avoiding aggressive buying at current levels.