Mehabe score: 2 G Factor: 6 Piotski Score: 5 The stock has a rating HOLD. The mehabe team score is reflective of its fundamental and technical merits. A rating above 8 is considered good buy. The stock has a G-Factor of 6 and Piotski score of 5.
Description
NCC Ltd is engaged in the infrastructure sector, primarily in the construction of industrial and commercial buildings, housing, roads, bridges and flyovers, water supply and environment projects, railways, mining, power transmission lines, irrigation and hydrothermal power projects, real estate development, etc.Site:NCCMain Symbol:NCC
Stock trades at 86.6, below its 50dma 86.86. However it is trading above its 200dma 72.89. The stock remains weak in the short term due to near term bearish momentum. However overall bullish structure remains intact. Price action will further build up as it moves above its dma50, currently situated at 86.86.
The 52 week high is at 100.00 and the 52week low is at 28.50
Price Chart
P/E Chart
Sales and Margin
Strengths
– Stock is trading at 1.02 times its book value
– has delivered good profit growth of 18.18% CAGR over last 5 years
Weakness
– has low interest coverage ratio.
-The company has delivered a poor sales growth of -3.56% over past five years.
-Promoter holding is low: 19.69%
– has a low return on equity of 8.46% for last 3 years.
-‘s cost of borrowing seems high
Competition
– The industry trades at a mean P/E of 37.8x. Macrotech Devel. trades at the industry’s max P/E of 19.03x. NCC trades at a P/E of 19.0x
– Industry’s mean G-Factor is 5.9 while the mean Piotski score is 7.0. NCC has a G-Factor of 6 and Piotski scoreof 5.
– Average 1 month return for industry is 16.6%. The max 1- month return was given by Mahindra Life.: a return of 37.06 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 2817.0 cr compared to Rs 2334.0 cr for period ended Mar 2020, a rise of 20.7%
Operating Profits reported at Rs 306.0 cr for period ended Mar 2021 vis-vis 281.0 for period ended Mar 2020 .
Operating Margins contracted -117.7 bps for period ended Mar 2021 vis-vis Mar 2020 .
The EPS for Mar 2021 was Rs 1.92 compared to Rs 1.17 for previous quarter ended Dec 2020 and Rs 1.24 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 7949.0 cr for period ended Mar 2021 vis-vis sales of Rs 8901.0 cr for the period ended Mar 2020, a fall of 12.0%. The 3 year sales cagr stood at -1.8%.
Net Profit reported at Rs 268.0 cr for period ended Mar 2021 vis-vis sales of Rs 337.0 cr for the period ended Mar 2020, falling 25.7%.
Company recorded a healthy Net Profit CAGR of 16.6% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
Sales Growth
Profit Growth Statement
Profit Growth Statement
Stock Price CAGR
Return of Equity
General Comments
– The company has had stable/constant Return on Equity (RoE) metric. The RoE on Last Year basis was 6.0% compared to 8.0% over the last 3 Years. – The stock has given a return of 199% on a 1 Year basis vis-vis a return of -2% over the last 3 Years. – The compounded sales growth on a TTM bassis is -11% vis-vis a compounded sales growth of -2% over the last 3 Years. – The compounded profit growth on a TTM basis is -18% vis-vis a compounded profit growth of 18% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Jun 2021 fii holding stood at 13.4% vis-vis 13.12% for Mar 2021 – Public shareholding has remained largely constant. The Jun 2021 public holding stood at 54.77% vis-vis 55.0% for Mar 2021
Conclusion
– Stock is trading at 1.02 times its book value
– has delivered good profit growth of 18.18% CAGR over last 5 years – has low interest coverage ratio.
-The company has delivered a poor sales growth of -3.56% over past five years.
-Promoter holding is low: 19.69%
– has a low return on equity of 8.46% for last 3 years.
-‘s cost of borrowing seems high
The business fundamentals of the stock remain stable. Stronger near term results will build interest in the stock. We suggest to wait for a upturn in business performance.
Technically, the stock remains below its 50 DMA 86.86 and is trading at 86.6. Shows a near term lack of buying interest.
