AngelOne has recommended NCC Ltd as one of its top Diwali picks for 2024, assigning it a target price of ₹400. With the current market price at ₹301, NCC offers an upside potential of 33%. As a leading construction company in India, NCC Ltd is involved in a variety of infrastructure projects, spanning transportation, water and irrigation, buildings, power, and more.
Quick Overview of Key Financials
| Parameter | Value |
|---|---|
| Current Market Price (CMP) | ₹301 |
| Target Price | ₹400 |
| Upside Potential | 33% |
| Market Cap | ₹18,867 crore |
| Beta | 2.1 |
| Sector | Construction |
Key Investment Highlights for NCC Ltd
- Strong Financial Performance in Q1FY25
In Q1FY25, NCC Ltd achieved robust financial growth with revenue increasing by 26.2% year-on-year to ₹5,528 crore and net profit rising by 21.2% YoY to ₹223 crore. This growth was supported by a strong order book and superior execution in its building division and electrical transmission and distribution (T&D) business. - Diverse Infrastructure Portfolio
NCC Ltd is one of India’s largest and most diversified construction players, with projects across buildings, roads, irrigation, and power. The company has also expanded into railways, metal sectors, and real estate development, establishing a presence across multiple high-growth sectors. - Beneficiary of Government Infrastructure Initiatives
With the government’s focus on infrastructure development and transportation, NCC Ltd is well-positioned to capitalize on upcoming opportunities in the sector. The continued emphasis on infrastructure by policymakers is likely to drive future revenue growth for the company. - Consistent Growth with Strong Order Book
NCC’s well-established presence in the construction sector and its robust order book ensure consistent growth. The company’s expertise and execution capabilities across multiple segments make it a reliable player in India’s construction landscape.
Key Financials Overview
| Year | Sales (₹ Cr) | PAT (₹ Cr) | EPS (₹) | OPM (%) | ROE (%) | P/E (x) | P/BV (x) | EV/Sales (x) |
|---|---|---|---|---|---|---|---|---|
| FY2024 | 20,845 | 711 | 11 | 9.0 | 10.7 | 20.5 | 2.2 | 0.9 |
| FY2023 | 15,553 | 609 | 10 | 10.3 | 9.9 | 10.9 | 1.08 | 1.2 |
| FY2022 | 11,138 | 482 | 08 | 11.7 | 8.6 | 7.4 | 0.64 | 1.8 |
NCC Ltd’s leadership in the construction sector, strong financial performance, and diverse portfolio across infrastructure projects make it an attractive investment for Diwali. With a target price of ₹400 and a 33% upside, AngelOne’s recommendation highlights NCC Ltd’s growth potential and solid positioning in India’s infrastructure growth story.
Disclaimer: This article is based on AngelOne’s research and is intended for informational purposes only. Investors are encouraged to consult a financial advisor and refer to the detailed research report before making any investment decisions.