Strong order ebook to drive income progress: As of thirty first Dec’24, the corporate’s order ebook stood at ₹55,548 Cr throughout numerous segments, offering income visibility for the following 2-3 years. With its sturdy execution observe file, the corporate is well-positioned for regular income progress. We anticipate it to realize a CAGR of 14%/17%/23% in Income/EBITDA/APAT, respectively, over FY25E-27E.
Robust bidding pipeline: The corporate has a bidding pipeline of ₹2.45 Lc Cr throughout all segments and states. For FY25, it expects an order influx of ₹20,000-22,000 Cr throughout all segments. As of 9MFY25, the order influx stood at ₹13,600 Cr, with the corporate being L1 in tasks value ₹8,000-10,000 Cr, which it expects to materialize by Q4FY25.
Diversified portfolio: The corporate’s enterprise portfolio is diversified throughout T&D (19%), Buildings (38%), Transportation (19%), Water & Railways (10%), Irrigation (9%), and Mining (5%). It at the moment has two good meter tasks in Bihar and Maharashtra value ₹7,800 Cr. In Q3FY25, NCC secured a river interlinking challenge, an formidable initiative by the Authorities of India, and expects extra orders from this phase.
Delay in Venture Execution
The inventory is buying and selling at 15x/13x/10X its FY25E/FY26E/FY27E EPS respectively. We suggest a BUY score on the inventory with a TP of ₹213/share, implying an upside of 10% from the CMP.
NCC Ltd, a Hyderabad-based building firm, operates throughout a number of segments, together with roads, buildings, irrigation, water and setting, electrical, metals, mining, and railways. Along with executing tasks throughout India, the corporate has a world presence by way of its subsidiaries in Muscat and Dubai. NCC Ltd stands out as one of many largest listed building corporations in India by income, backed by a well-diversified portfolio and powerful execution capabilities.
