NCC - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 19 Sept 25, 2:16 pm

Fundamental Rating: 4.1

📊 Core Financials Overview

Profitability

PAT declined slightly from ₹242 Cr to ₹190 Cr — a –5.3% variation, but still reflects solid earnings.

EPS: ₹12.0 — decent for its price range.

Return Metrics

ROCE: 20.1% — strong capital efficiency.

ROE: 10.7% — moderate shareholder return.

Debt Profile

Debt-to-equity: 0.20 — low leverage, healthy for an infra-heavy business.

Cash Flow: Not explicitly stated, but consistent profitability and low debt suggest stable operating cash flows.

💹 Valuation Indicators

Metric Value Commentary

P/E Ratio 17.4 Undervalued vs. industry average of 20.6 — attractive entry point.

P/B Ratio ~1.83 Reasonable given asset-heavy model and ROE.

PEG Ratio 0.65 Attractive — suggests undervaluation relative to growth.

Intrinsic Value Likely near ₹190–₹200 Current price slightly above fair value, but justified by order book strength.

🧠 Business Model & Competitive Advantage

NCC Ltd. is a diversified infrastructure and construction company with operations across

Core Segments

Buildings, transportation, water, electrical T&D, irrigation, and mining.

Order Book Strength

₹55,548 Cr order book spanning multiple sectors

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Targeting ₹8,000–₹10,000 Cr in fresh orders in Q4 FY25

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Strategic Expansion

Entering smart metering (₹5,700 Cr in Maharashtra, ₹2,300 Cr in Bihar) and river interlinking projects like Ken-Betwa

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Geographic Focus

Strong presence in infrastructure-heavy states like Maharashtra, Andhra Pradesh, and Telangana

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Government Tailwinds

Benefiting from ₹11.2 lakh Cr CAPEX allocation in Union Budget FY26

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Its competitive edge lies in diversified execution capability, government alignment, and strategic sectoral expansion, positioning it well for long-term infrastructure growth.

📈 Technical & Sentiment Signals

RSI: 53.9 — neutral zone, no strong momentum.

MACD: Slightly negative — mild bearish crossover.

Volume: Below weekly average — suggests consolidation.

DMA 50/200: Price hovering near both — trend indecisive.

🎯 Entry Zone & Long-Term Guidance

Suggested Entry Zone: ₹195–₹210 — near support and below moving averages.

Long-Term View: NCC is a solid infrastructure play with strong fundamentals, low debt, and a robust order pipeline. Suitable for long-term holding, especially for investors seeking exposure to India’s infra boom. Dividend yield of 1.02% adds modest income support.

You can explore NCC’s growth strategy and future outlook for deeper insights

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. Let me know if you'd like a comparison with NBCC or IRCON.

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