NCC gains 4% on beating FY19 order inflow guidance; CLSA sees 27% upside

Global brokerage house CLSA has a buy call on the stock and has raised price target to Rs 145 from Rs 140 earlier

NCC shares climbed over 4 percent intraday on May 27 after the company beat its FY19 order inflow guidance. CLSA said it sees 27 percent potential upside in the stock.


The stock has shot up 40 percent in the last three months. It was quoting at Rs 116.70, up to Rs 2.55, or 2.23 percent on the BSE, at 1120 hours IST.

The construction company reported a whopping 70 percent YoY growth in March quarter profit at Rs 175 crore driven by healthy execution and strong operating income.

Revenue during the quarter grew 42 percent YoY to Rs 3,761 crore and operating profit margin expanded 120 bps YoY.

The company not only beat earnings but also its order inflow guidance. Its FY19 order inflow was over Rs 25,612 crore against its guidance of Rs 15,000-20,000 crore, taking the order book to Rs 39,216 crore.

For FY19, profit shot up 245 percent to Rs 579 crore, and revenue came in at Rs 12,896 crore, far ahead of its own guidance of Rs 11,000 crore.

Global brokerage house CLSA has a buy call on the stock and has raised price target to Rs 145 from Rs 140 earlier.

NCC did not provide any FY20 guidance due to changes in Andhra Pradesh state government. Affordable housing and highway program will create several years of growth visibility, CLSA said.

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