⚠ 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: 3.5
| Stock Code | NCC | Market Cap | 9,153 Cr. | Current Price | 146 ₹ | High / Low | 248 ₹ |
| Stock P/E | 12.7 | Book Value | 121 ₹ | Dividend Yield | 1.51 % | ROCE | 20.1 % |
| ROE | 10.7 % | Face Value | 2.00 ₹ | DMA 50 | 160 ₹ | DMA 200 | 196 ₹ |
| Chg in FII Hold | -1.38 % | Chg in DII Hold | -1.35 % | PAT Qtr | 101 Cr. | PAT Prev Qtr | 190 Cr. |
| RSI | 41.6 | MACD | -4.49 | Volume | 38,86,469 | Avg Vol 1Wk | 29,58,073 |
| Low price | 138 ₹ | High price | 248 ₹ | PEG Ratio | 0.47 | Debt to equity | 0.28 |
| 52w Index | 6.96 % | Qtr Profit Var | -37.1 % | EPS | 11.0 ₹ | Industry PE | 16.9 |
📊 Core Financials
- Revenue & Profitability: Quarterly PAT dropped from 190 Cr. to 101 Cr. (-37.1%), showing earnings pressure. EPS at 11 ₹ is modest relative to valuation.
- Margins: ROCE at 20.1% is healthy, but ROE at 10.7% is relatively weak, indicating moderate shareholder returns.
- Debt: Debt-to-equity ratio of 0.28 is manageable, reflecting controlled leverage.
- Cash Flow: Dividend yield of 1.51% provides steady shareholder returns.
💹 Valuation Indicators
- P/E Ratio: 12.7 vs Industry PE of 16.9 → Undervalued compared to peers.
- P/B Ratio: Current Price (146 ₹) / Book Value (121 ₹) ≈ 1.2 → Reasonable valuation.
- PEG Ratio: 0.47 → Attractive, suggesting growth potential relative to price.
- Intrinsic Value: Current price appears below fair value, offering upside potential.
🏭 Business Model & Competitive Advantage
- NCC operates in construction, infrastructure, and EPC projects, benefiting from India’s infrastructure push.
- Strong execution capabilities and diversified project portfolio provide resilience.
- Moderate leverage and reasonable valuation strengthen long-term sustainability.
📈 Entry Zone & Long-Term Guidance
- Entry Zone: Attractive accumulation range between 135 ₹ – 145 ₹, closer to support levels and below DMA 200.
- Long-Term Holding: Suitable for investors seeking exposure to infrastructure growth. Staggered buying recommended due to earnings volatility.
✅ Positive
- Debt-to-equity ratio of 0.28 indicates controlled leverage.
- ROCE at 20.1% highlights operational efficiency.
- P/E ratio below industry average, suggesting undervaluation.
- Dividend yield of 1.51% provides steady returns.
⚠️ Limitation
- Quarterly PAT decline (-37.1%) shows earnings weakness.
- ROE at 10.7% is modest compared to peers.
- Stock trading below DMA 50 and DMA 200 indicates weak momentum.
📉 Company Negative News
- FII holding decreased by 1.38%, showing reduced foreign investor confidence.
- DII holding decreased by 1.35%, reflecting lower domestic institutional support.
📈 Company Positive News
- Dividend yield of 1.51% supports shareholder value.
- PEG ratio of 0.47 highlights attractive growth potential relative to valuation.
- Reasonable P/B ratio (1.2) indicates fair pricing.
🌐 Industry
- Construction and infrastructure sector benefits from government-led projects and urbanization.
- Industry PE at 16.9 suggests NCC trades at a discount, offering potential upside if earnings stabilize.
🔎 Conclusion
NCC shows reasonable valuation with controlled leverage and strong ROCE, but earnings volatility and weak ROE limit attractiveness. Investors may consider entering around 135–145 ₹ for long-term holding, while avoiding aggressive buying until profitability stabilizes. The company remains fundamentally sound and positioned to benefit from India’s infrastructure growth story.
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