Check Before You Invest : NCC Ltd

Snapshot

Q.1 Which industry/sub-sector does NCC Ltd belong to?

NCC Ltd belongs to the Construction & Infrastructure sector, operating specifically within the Engineering - Construction segment.

Q.2 Is NCC Ltd a good quality company?

NCC Ltd is a good quality company, based on a consistently good 10-year financial track record.

Q.3 Is NCC Ltd undervalued or overvalued?

NCC Ltd appears Fair, as its key valuation ratios are in line with their past averages.

Q.4 Is NCC Ltd a good buy now?

NCC Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of NCC Ltd?

NCC Ltd revenue growth is 4.9% for FY-2025, which is below its 5-year CAGR of 18.5%, indicating slower growth.

Q.2 Return on capital employed (ROCE) of NCC Ltd?

NCC Ltd Return on capital employed is 20.09% for FY-2025, which is above its 5-year historical median of 18.13%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 13.5%, indicating value creation.

Q.3 Return on Asset of NCC Ltd?

NCC Ltd Return on Asset is 4.11%, which is above its 5-year historical median of 3.85%, indicating improved asset utilization efficiency.

Q.4 Return on Equity (ROE) of NCC Ltd?

NCC Ltd Return on equity is 10.68% for FY-2025, which is above its 5-year historical median of 9.41%, indicating the business is making better use of its shareholders capital.

Q.5 Cash conversion cycle of NCC Ltd?

NCC Ltd Cash conversion cycle is -35 days, below its 5-year historical median of -28 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover	1.04	0.91
ROE	10.68	9.41
ROCE	20.09	18.13
Cash Conversion Cycle	-35 days	-28 days

Q.6 Gross Profit margin of NCC Ltd?

NCC Ltd Gross profit margin which is the profit after deduction of direct costs, is 6.7% for FY-2025, which is in line with its 5-year median of 6.7%, indicating stable margins.

Q.7 Operating Profit Margin of NCC Ltd?

NCC Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 9.09% for FY-2025, which is below its 5-year median of 10.03% indicating decreasing margins.

Q.8 Net Profit Margin of NCC Ltd?

NCC Ltd Net Profit Margin is 3.96% for FY-2025, is in line with with its 5-year median of 3.96%, indicating stable margins.

	Current Level	5-year Historic Median
Gross Profit Margin	6.7	6.7
Operating Profit Margin	9.09	10.03
Net Profit Margin	3.96	3.96

Q.9 Debt to Equity ratio of NCC Ltd?

NCC Ltd Debt-to-Equity ratio is 0.20, which is lower with the industry average of 0.39, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of NCC Ltd?

NCC Ltd Debt to cash flow from operations is 1.82, which is at a moderate level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of NCC Ltd?

Promoters hold 22.81% of the NCC Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of NCC Ltd vs industry peers?

NCC Ltd revenue CAGR is 18.50%, compared to the industry median CAGR of 9.45%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	4.9	9.5
Gross Profit Growth	8.8	14.9
Operating Profit Growth	6	11.1
Net Profit Growth	20.6	18.3

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	1.04	0.68
ROE	10.68	8.34
ROCE	20.09	11.34
Cash Conversion Cycle (days)	-34.68	57

Valuation & price assessment

Q.1 Stock return of NCC Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of 8% based on the current price.

Q.2 What return has the stock given over the last decade?

	9Y	5Y	3Y	1Y
Share Price CAGR	8%	17.1%	9.3%	-24.7%

Q.3 Valuation ratios of NCC Ltd vs historical?

The current P/E is higher that its historical median.

Q.4 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	17.48	16.20	21.62
Price to Book	1.34	1.29	1.75
Price to Sales	0.59	0.64	1.50
EV to EBITDA	6.88	6.41	11.53

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