NCC Q1 Results Review - Growth Sustained: IDBI Capital

IDBI Capital Report

NCC Ltd. Q1 FY25 profit after tax came in-line with consensus estimates. Revenue was up by 23% YoY for Q1 FY25 and company has guided 15% revenue growth for FY25 with Ebitda margins of 9.5%-10%.

NCC also expects new opportunities from state of Andhra Pradesh and Bihar and also expects restocking of older orders worth Rs 50 billion which got cancelled back in 2019. We have retained our Buy rating on the stock and target price is revised to Rs 380 valued at 17 times FY26E earnings per share (earlier Rs 300).

Ascribe PER multiple value NCC at its +1 STD but we still find it reasonable. Q1 FY25 order inflow was bit muted at Rs4bn but NCC guides order inflow of Rs 200-220 billion for FY25 and are confident to achieve it.

Key catalyst for stock is order inflow, order book at Rs 526 billion (2.5 times plus trailing twelve months revenue) continues to provide revenue visibility.

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