NCC Q3 Results Review: IDBI Capital Downgrades Rating To 'Hold', Revises Target Price — Here's Why

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IDBI Capital Report

NCC Ltd.’s Q3 FY25 PAT came in 20% below consensus estimates. Revenue declined by 2% YoY for the quarter, impacted by lower turnover and delayed receivables. Ebitda margin was also affected due to lower turnover, leading the company to revise its margin guidance to 9.25% for FY25.

NCC anticipates new opportunities in Andhra Pradesh for capital city development and has secured a new order for a river interlinking project, with expectations of more orders from this segment. We have downgraded our rating to Hold, revising the target price to Rs 268, valued at 13x FY27E EPS.

Q3FY25 order inflow stood at Rs 84 billion, with 9M FY25 inflow at Rs 136 billion. The company expects an additional order inflow of Rs 70- 90 billion for FY25 and has an level-one pipeline of nearly Rs 90 billion. The key catalyst for the stock remains improvement in execution and stability in Ebitda margins.

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