HDFC Securities has a buy call on the shares of NCC Limited, a company in which Rakesh Jhunjhunwala recently sold a portion of his stake.
The big bull had a 12.8% stake in NCC Limited in the quarter ending March 2022. However, he sold about 0.4% of his stake and he currently owns a 12.5% stake in the company. In other words, he has 7,83,33,266 shares of the company, and his holdings amount to ₹ 441.8 crores.
Interestingly, HDFC Securities sees a 90.31% in this stock. The company’s shares are currently trading at ₹ 56.75 apiece and HDFC Securities has given a buy call with a target price of ₹ 108. The analyst expects that the shares might reach the given target in a year.
NCC Limited is a construction company that builds industrial and commercial buildings, roads, water supply and environment projects, mining, power transmission lines and so on. It is a small cap company with a market capitalization of ₹ 3,591 crores. It is trident at a PE Ratio (TTM) of 7.28. The company has an ideal debt to equity ratio of 0.23 and a dividend yield of 1.40%. Its promoters hold a mere 21.99% stake in the company.
Written by: Simran Bafna
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