NCC Q2 Results Review - Dismal H1 But Execution Set To Improve: Centrum

The brokerage expects the company to resume its execution momentum from H2, however, margins are expected to remain range bound.

A road project in Ahmedabad, Gujarat carried out by NCC Ltd.  Image for representational purpose. (Source: Company website)

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Centrum Broking Report

NCC Ltd. reported weak set of results for Q2 FY25 as heavy monsoon, delay in getting approvals in several projects and slow execution in JJM projects, smart meter projects and change in alignment in GMLR project resulted in revenue coming in 7% below our estimate.

Margins at 9% were below our estimate of 9.5% resulting in 16%/40% YoY drop in Ebitda/PAT. Nevertheless, the management has maintained its guidance for FY25 of 15% revenue growth and 9.5-10% margins. Order inflow remained healthy with inflow of Rs 47.6 billion in Q2 and the company is level-one for orders worth Rs 92 billion.

Given the strong order pipeline of Rs 2.1 trillion, we believe the company can surpass its order inflow guidance of Rs 200-220 billion.

We have tweaked our estimates for FY25 and FY26 and introduce FY27 numbers. We have moved our valuation forward to Sep-26 to arrive at our revised target price of Rs 310 (Rs 280 earlier). We upgrade the stock to Reduce from Sell.

Click on the attachment to read the full report:

Centrum NCC - Q2FY25 Result Update.pdf
Read Document

Also Read: Page Industries Q2 Results Review - Better-Than-Expected Performance; Retaining A Hold: Anand Rathi

DISCLAIMER

This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

lock-gif
To continue reading this story
Subscribe to Unlock & Enjoy your
Subscriber-Only benefits
Still Not convinced ?  Know More
Watch LIVE TV , Get Stock Market Updates, Top Business , IPO and Latest News on NDTV Profit.
GET REGULAR UPDATES