NCC - Investment Analysis

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

Investment Rating: 4.2

🏗️ Fundamental Analysis: NCC Ltd.

NCC Ltd. is a mid-cap infrastructure player with solid fundamentals and reasonable valuations. While not as capital-efficient as top-tier peers, it offers a compelling mix of value and growth potential for long-term investors.

Metric Value Implication

Stock P/E 17.1 Undervalued vs. industry PE of 23.8 — attractive entry point

PEG Ratio 0.48 Very favorable — growth is reasonably priced

ROE / ROCE 11.7% / 22.1% Decent — ROCE strong, ROE slightly below ideal for long-term compounding

Dividend Yield 0.99% Moderate — adds passive income

Debt-to-Equity 0.22 Healthy — manageable leverage

EPS ₹13.1 Solid earnings base — supports valuation

Profit Growth (QoQ) -2.14% Slight dip — needs monitoring

📉 Technical & Trend Analysis

Current Price: ₹223

DMA 50 / DMA 200: ₹225 / ₹236 — trading below both, indicating short-term weakness

RSI: 46.8 — neutral zone, no strong momentum

MACD: -1.61 — bearish crossover

Volume: Above average — possible accumulation or distribution

✅ Is It a Good Long-Term Investment?

Yes — moderately strong candidate. NCC offers a good balance of valuation and growth. While ROE is not exceptional, the PEG ratio and ROCE suggest efficient operations and potential for upside. Its infrastructure exposure aligns with long-term government capex themes.

🎯 Ideal Entry Price Zone

Buy Zone: ₹200–₹215

Near support and below DMA levels

Accumulate gradually if PEG stays below 0.6 and ROCE remains above 20%

Avoid chasing above ₹250 unless earnings growth resumes

🧭 Exit Strategy / Holding Period (If Already Holding)

If you're already invested

Holding Period: 2–4 years — to benefit from infra cycle and margin expansion

Exit Strategy

Partial Exit near ₹340–₹360 if valuation stretches (P/E > 25)

Hold if ROE improves above 15% and PEG remains < 0.7

Reassess if quarterly profit declines persist or RSI drops below 40 with MACD negative

Would you like a comparison with other infra stocks like KNR Constructions, PNC Infratech, or HG Infra to identify better capital-efficient alternatives?

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