NCC - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.6
| Stock Code | NCC | Market Cap | 9,168 Cr. | Current Price | 146 ₹ | High / Low | 242 ₹ |
| Stock P/E | 14.8 | Book Value | 121 ₹ | Dividend Yield | 1.51 % | ROCE | 15.2 % |
| ROE | 8.26 % | Face Value | 2.00 ₹ | DMA 50 | 156 ₹ | DMA 200 | 173 ₹ |
| Chg in FII Hold | 0.62 % | Chg in DII Hold | 1.10 % | PAT Qtr | 220 Cr. | PAT Prev Qtr | 106 Cr. |
| RSI | 33.8 | MACD | -1.92 | Volume | 20,55,994 | Avg Vol 1Wk | 22,66,955 |
| Low price | 130 ₹ | High price | 242 ₹ | PEG Ratio | 2.92 | Debt to equity | 0.30 |
| 52w Index | 14.4 % | Qtr Profit Var | -9.05 % | EPS | 9.19 ₹ | Industry PE | 17.6 |
📊 Financials: The company shows moderate profitability with ROE at 8.26% and ROCE at 15.2%, reflecting average efficiency in capital usage. Debt-to-equity is low at 0.30, indicating manageable leverage. Quarterly PAT rose from ₹106 Cr. to ₹220 Cr., but the reported profit variation of -9.05% suggests inconsistency. EPS of ₹9.19 is modest relative to market capitalization.
💹 Valuation: Current P/E of 14.8 is slightly below the industry average of 17.6, suggesting fair valuation. The PEG ratio of 2.92 indicates growth prospects are not fully aligned with price. Book value of ₹121 against a market price of ₹146 implies a reasonable P/B ratio. Intrinsic value appears close to current levels, offering limited upside.
🏭 Business Model: The company operates in construction and infrastructure development, benefiting from government contracts and private sector demand. Competitive advantage lies in execution capabilities and diversified projects, though profitability remains modest compared to peers.
📈 Entry Zone: A favorable entry would be closer to ₹135–140, near the recent low of ₹130. Current price of ₹146 is slightly above fair value, so accumulation on dips is recommended.
⏳ Long-Term Holding: While the company has stable operations and manageable debt, modest return ratios and earnings volatility suggest cautious long-term holding. Investors should accumulate gradually on dips rather than aggressively at current levels.
Positive
- ✅ Low debt-to-equity ratio (0.30)
- ✅ Dividend yield of 1.51% adds shareholder value
- ✅ PAT doubled from ₹106 Cr. to ₹220 Cr. quarter-on-quarter
- ✅ Increase in FII (+0.62%) and DII (+1.10%) holdings shows institutional support
Limitation
- ⚠️ Modest ROE (8.26%) and ROCE (15.2%)
- ⚠️ PEG ratio of 2.92 indicates limited growth relative to valuation
- ⚠️ RSI at 33.8 suggests weak momentum
Company Negative News
- 📉 Reported quarterly profit variation of -9.05% indicates inconsistency
Company Positive News
- 📈 PAT growth from ₹106 Cr. to ₹220 Cr. shows operational strength
- 📈 Institutional interest with FII and DII holdings increasing
Industry
- 🏗️ Construction sector benefits from government infrastructure spending
- 📊 Industry P/E at 17.6 suggests peers are slightly more expensive
- 🌍 Growth opportunities in housing, urban development, and public projects
Conclusion
Overall, the company is financially stable with manageable debt and fair valuation. However, modest return ratios and earnings inconsistency limit upside potential. Best strategy is cautious accumulation near ₹135–140 for long-term holding, while avoiding aggressive buying at current levels.
Would you like me to extend this with a peer comparison against other construction and infrastructure companies, or a technical analysis view to highlight support/resistance and momentum indicators?