NCC Stock Price Falls Sharply: NCC is seeing a huge decline today. NCC slipped more than 12% due to reduction in guidance. Actually, the company has reduced guidance for FY25. The company has reduced income guidance from 15% to 5%. The margin guidance has reduced from 9.5-10% to 9.25%. At the same time, brokerage firms have also cut their target price. This is the reason why the market did not like the company’s Q3 results and the shares became today’s accident of the day.
Why decline in NCC?
The company’s challenges regarding the project execution continue. The company’s net profit in the October-December quarter has declined by 12.5 per cent on an annual basis. The company has earned a profit of Rs 193.2 crore during this period. The margin in Q3 has come down from 9.6% to 9.6%. The income in Q3 rose 1.6% to Rs 5,260 crore.
Debt on NCC increased
The company’s debt in Q3 has increased by 670 crores. The total debt has increased from Rs 1,730 crore to Rs 2,400 crore. The company’s debt has increased due to delay in payment of JJM project.
How to be Q3 results
NCC Limited’s revenue increased by 1.6 per cent to ₹ 5344.5 crore in the December quarter, compared to ₹ 5260 crore in the same period of the previous financial year. Ebitda fell 16.6% to ₹ 420.9 crore in the third quarter of this financial year at the operating level, compared to ₹ 504.4 crore in the same period of the previous financial year. The Ebitda margin was 7.9% in this quarter, compared to 9.6% in the same period of the previous financial year. The company has recorded basic and diluted EPS of ₹ 3.08 for the third quarter, while it was ₹ 3.51 in the same quarter of the previous year.
NCC order book
The company’s dialect pipeline is Rs 2.45 lakh crore. FY25 has received orders worth Rs 14000 crore so far. FY25 has an order inflow guidance of Rs 20,000 crore.
Brokerage opinion
Meanwhile, EPS estimates of Nuwama FY25/FY26/FY27 have decreased. Brokerage firm Nuwama says that the delay in payment has increased `680 crores. FY25 income guidance is reduced from 15% to 5%. Nuwama has cut its target price by 26 per cent.
At the same time, JM Financial has retained the opinion of BUY rating on stock but has reduced its target price from Rs 365 per share to Rs 330. JM Financial says that the challenge about the execution remains intact. EPS estimates from low execution, margin. FY25 20%, FY26 13%, 11%EPS of FY27 is estimated. Revenue/Core EPS CAGR is 15%/35% for FY25-27.
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