On Thursday the share price of the company hit its 52-week high and rose by 5 percent to Rs 202.9 per share from its previous close of Rs 193.25 after the smallcap world fund Inc. bought shares through the bulk deal.
According to the NSE Bulk deal, Smallcap World Fund Inc. purchased 36 Lakhs equity shares, or 0.58 percent of the NCC Limited, in an open market transaction at an average price of Rs 185.23 per share. These shares amounted to Rs 66.96 crore.
Looking at the company financials, their net revenue increased by 40 percent year over year, from Rs 3,373 crore in Q2FY23 to Rs 4,720 crore in Q2FY24. Their revenue rose by 7 percent sequentially from Rs 4,380 crore in Q1FY24 to the current levels.
In addition, the company’s net profit fell by 37 percent year over year, from Rs 138 crores in Q2FY23 to Rs 86 crores in Q2FY24. Their profit decreased by 53 percent on a quarterly basis from Rs 184 crore in Q1FY24 to the current levels.
NCC Limited is a small-cap company with a market capitalization of Rs 12,403 crores, the share price of the company rose by 55 percent in the last six months and 109 percent in the last year. For instance, if an investor invested Rs 1 lakh a year ago the current value would be Rs 2.09 Lakhs.
The company has a low price-to-earnings ratio of 20 compared to its peers, with a low debt-to-equity ratio of 0.16, a return on equity of 11 percent, and a return on capital employed of 20 percent.
The promoter owns 22 percent of the company, the general public owns 44 percent, foreign institutional investors own 24 percent, and domestic institutional investors own 10 percent.
NCC Limited is an India-based company engaged in construction activities in the infrastructure sector, including building construction, roads, bridges, water supply projects, mining, power transmission lines, and more. The company has three segments: Construction, Real Estate, and others.
Written by Sriram KV
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