A majority of companies have released their Q2FY24 results and, keeping a positive outlook and aggressive projections for companies, various Brokerage houses have published reports with attractive target prices.
Listed below is one such realty stock that one should add to their watchlist for a potential upside of around 41 percent:
With a market capitalization of Rs 10,309.24 crores, the stocks of NCC Limited are currently trading at Rs 164.20, slipping around 0.60 percent as compared to the previous closing levels of Rs 165.15 apiece.
In recent financial years, the company has been on a path of continuous growth with the most recent movement in operating revenues from Rs 11,137.96 crores during FY21-22 to Rs 15,553.41 crores during FY22-23, and, the net profit numbers, during the same period, moving up from Rs 494.03 crores to Rs 646.21 crores.
As a result of the above, the company’s profitability metrics also showed positive movements with the return on equity (RoE) increasing from 9.22 percent during FY21-22 to 11.01 percent during FY22-23, and, the return on capital employed (RoCE) moving from 15.74 percent to 19.94 percent.
HDFC Securities gave a ‘Buy’ recommendation for the company’s stock with a target price of Rs 231 indicating an upside of approximately 41 percent as compared to the current stock price levels prevailing in the market.
The investment rationale behind providing such a recommendation pertains to strong financials, well-diversified order book, suitable debt levels, and many more.
Keeping a purview of a year, the company’s stock has delivered multibagger returns of around 110 percent, i.e., if someone had invested Rs 1 lakh in the stock a year ago, it would have converted to Rs 2.10 lakhs.
According to the shareholding pattern for the quarter ended September 2023, the company’s Promoters hold a 22 percent stake. Moreover, Foreign Institutional Investors (FIIs) have consistently increased stakes in the past few quarters, and, currently hold a considerable stake of 24.18 percent.
NCC Limited is a company based in India that is engaged in the construction business through its two subsidiaries, i.e., NCC Infra and NCC Urban. Some of the company’s infrastructure projects developed include bridges, roads, flyovers, power transmission lines, irrigation, etc.
Written by Amit Madnani
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.