NCC - Fundamental Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Fundamental Rating: 3.8

NCC Ltd., a diversified construction and infrastructure firm, showcases disciplined execution, balance sheet stability, and value-oriented pricing — making it a promising play within India's infrastructure growth story.

🧾 Core Financials Snapshot

Profit Metrics

ROCE of 22.1% and ROE of 11.7% — indicate operational strength, though ROE could be better.

EPS of ₹13.1 — aligns well with valuation and sector norms.

Quarterly Performance

PAT dipped from ₹193 Cr. to ₹254 Cr. — slight negative profit variation of -2.14%, signals flat momentum.

Debt & Liquidity

Debt-to-equity at 0.22 — very healthy, allowing more flexibility in project funding.

Dividend Yield

At 0.99%, it offers some passive return — decent within infra segment norms.

📊 Valuation Metrics

Metric Value Commentary

P/E Ratio 17.1 Undervalued compared to industry PE (23.8)

P/B Ratio ~1.90 Appealing given book value of ₹117

PEG Ratio 0.48 Strong signal of undervaluation vs growth

Intrinsic Value ✖ Likely above current price — room for upside

Verdict: Attractive entry pricing with room for valuation catch-up.

🏗️ Business Model & Edge

Diverse presence across transportation, water supply, irrigation, buildings, and electrical infrastructure.

Execution capabilities supported by longstanding government and PSU partnerships.

Competitive advantage lies in scale, legacy order book, and discipline in bidding.

Growth drivers include upcoming railway and urban infra spending, state-led CapEx, and Smart Cities projects.

📉 Technical Indicators

RSI: 46.8 — neutral; suggests accumulation zone.

MACD: -1.61 — soft bearish divergence, may imply short-term consolidation.

Price hovering around 50-DMA (₹225) and slightly below 200-DMA (₹236) — technical support not fully confirmed.

FII holding decline vs DII pickup — institutions showing selective accumulation.

🎯 Entry Zone & Long-Term Outlook

Suggested Entry Zone: ₹215–₹225 — ideal for accumulation closer to DMA levels.

Investment Outlook

Long-term potential tied to public infrastructure cycles, budget allocations, and order visibility.

Best suited for portfolios seeking high-beta infra exposure with moderate volatility.

Recommend staggered entry, with quarterly results as re-rating catalysts.

I can set up a head-to-head scorecard against players like J Kumar Infra, PNC Infratech, or KNR Constructions — spotlighting margin profiles, asset turns, and order book health. Just say when and I’ll build it.

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