NCC stock surges over 8% on strong Q4 results, brokerages bullish

NCC stock surged over 8 per cent on the NSE on Thursday after the company’s Q4 financial results. 

The company reported its consolidated net profit for the quarter ended March 2024 at ₹238.74 crore as against ₹202.97 crore in the corresponding quarter last year. 

Brokerages have been bullish on the stock. Analysts of Centrum Institutional Research pointed out that the company delivered strong results yet again with revenue and PAT growth of 41 per cent and 42 per cent, respectively, for 3QFY24. “Higher execution in JJM projects and building and electrical division resulted in a substantial 13 per cent beat on our expectations,” they said.

The brokerage increased PAT estimates for FY24/FY25 by 16 per cent/17 per cent to factor in better execution and margins. It revised target price from ₹182 to ₹240 based on 13x Sep25 PAT (12x earlier) and maintained ‘add’ call on the stock.

JM Financial maintained their ‘buy’ call with a target price of ₹285. “We raise PAT by 9%/13% in FY25/26E led by higher revenues and lower debt levels,” the brokerage added.

The analysts of JM Financial pointed out that the company has survived adverse business cycles and showed improvement in operations and NWC management. “Additionally, part receipt of Vizag deal proceeds with near-term visibility of receipt of remainder proceeds further strengthens balance sheet,” they said.

The stock surged 8.09 per cent to trade at ₹271.75 on the NSE as of 1.10 pm.

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