NCC Q3 Results Review - Robust Execution, Order Accretion: Centrum Broking

Centrum Broking Report

NCC Ltd.'s delivered strong set of results yet again with Revenue and profit after tax growth of 41% and 42% respectively for Q3 FY24. Higher execution in Jal Jeevan Mission projects and building and electrical division resulted in a substantial 13% beat on our expectations.

While order inflow for NCC in Q3 was muted, substantial order accretion in 1H FY24 will help the company to achieve its guidance of Rs 260 billion order inflow this year.

We expect revenue growth momentum to sustain in FY25 despite election related slowdown in order inflows. Balance sheet in terms of debt as well as working capital continues to improve despite superior revenue growth.

We believe that diversified EPC players like NCC have further rerating potential given the vast opportunities across multiple infra segments to tap into.

We have increased our profit after tax estimates for FY24/FY25 by 16%/17% to factor in better execution and margins.

Our revised target price now stands at Rs 240 (Rs 182 earlier) based on 13 times September 2025 PAT 12 times earlier. We maintain our 'Add' rating on the stock.

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