CLSA has maintained its outperform call on NCC Ltd but lowered the target price to ₹261 per share from ₹315 earlier, implying an upside potential of around 33.6% from the current market price of ₹195.42.
The brokerage said Q2FY26 performance was impacted by excessive and prolonged monsoon conditions and a slower pick-up in water projects, resulting in a 16% year-on-year decline in execution and a 37% fall in profit after tax (PAT).
Despite the weak quarterly show, NCC’s order backlog grew 37% YoY, providing some revenue visibility. However, the company’s decision to withdraw its FY26 guidance signals a hazy near-term outlook, CLSA noted.
The brokerage has cut its FY26–28 EPS estimates by 12–24%, factoring in the soft first half and the assumption of slower project starts ahead. Still, CLSA believes NCC’s strong order book and established execution capabilities keep its long-term growth potential intact.
Disclaimer: The above article is based on brokerage reports and is for informational purposes only. It does not constitute investment advice or recommendations to buy or sell any securities.
