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NCC Ltd. Stock Analysis

Small Cap
Evaluated by 3229 users | BSE: 500294 | NSE: NCC |
Engineering - Construction
NCC earlier known as Nagarjuna Construction Company incorporated in 1990 is engaged in development of real estate. NCC projects stand on credentials of its work in various sectors such as Housing, Transportation, Power, water, Metals and Oil and gas. The company was listed in 1992.The year...

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
NCC Ltd. has performed well in some of the past ten years indicating its past ten year financial track record is somewhat good
Value Creation
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Capital Employed 7.84%6.37%7.28%7.52%10.17%11.45%10.73%11.86%14.72%10.72%
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 5,0745,2505,7256,1178,2978,3257,8927,55912,0808,219
Y-o-Y Gr. Rt.-3.5%9%6.9%35.6%0.3%-5.2%-4.2%59.8%-32%
Adjusted EPS (Rs.) 4.160.91.4412.14.244.826.019.86.15
Y-o-Y Gr. Rt.--78.4%60%-30.6%110%101.9%13.7%24.7%63.1%-37.2%
Book Value per Share (Rs.) 62.2763.1264.6165.9757.6458.6661.9270.6278.7483.72
Adjusted Net Profit 15934.35538117236268361589375
Net Op. Cash Flow (Rs. Cr.) -251976369370514489197447345636
Debt to Cash Flow from Ops -9.882.296.046.693.883.858.012.915.773
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
NCC Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales 5.5%-0.2%1.4%-32%
Adjusted EPS 4.4%24%8.5%-37.2%
Book Value per Share 3.37.810.66.3
Share Price -1.1% -16.6% -29.1% -37.9%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Equity (%) 6.871.432.261.534.087.389.413.087.61
Operating Profit Margin (%) 9.577.618.236.637.838.868.7111.3211.7812.53
Net Profit Margin (%) 3.130.650.960.621.412.833.44.784.874.56
Debt to Equity 1.040.930.90.980.620.580.460.310.420.37
Working Capital Days 347401397403326328333380289456
Cash Conversion Cycle 891008689768610011925-51
Entity Percentage Holding
Promoters 19.68%
Institutions 22.11%
Non-Institutions 58.20%
Pledged *32.4638.1342.7242.7241.3536.6836.3734.1829.7326.19
* Pledged shares as % of Promoter's holding (%)

MoneyWorks4Me analysed the past 10-year performance of NCC Ltd. and arrived at the following conclusion:

Past 10 year's financial track record indicates that NCC Ltd. is a average quality company. However, for specific investment actions please connect with your investment advisor.

The 5-year analysis of NCC Ltd.'s performance infers:

NCC Ltd. earnings have grown by 24%, whereas share price has depreciated -16.6% CAGR over the past five years, indicating the company's share price is likely undervalued. However, for specific investment actions please connect with your investment advisor.

We analysed the performance of NCC Ltd. share prices over the last 10 years. Here is what we found out:

NCC Ltd. share price has depreciated -10.7% annually over the past ten years.

NCC earlier known as Nagarjuna Construction Company incorporated in 1990 is engaged in development of real estate. NCC projects stand on credentials of its work in various sectors such as Housing, Transportation, Power, water, Metals and Oil and gas. The company was listed in 1992.

The year 1995 saw NCC crossing a turnover of Rs. One billon. The Property Division was established in 1996 followed by the Transportation Division in 1998. The Water, Electrical, Power, Irrigation, Metals, Oil

NCC earlier known as Nagarjuna Construction Company incorporated in 1990 is engaged in development of real estate. NCC projects stand on credentials of its work in various sectors such as Housing, Transportation, Power, water, Metals and Oil and gas. The company was listed in 1992.

The year 1995 saw NCC crossing a turnover of Rs. One billon. The Property Division was established in 1996 followed by the Transportation Division in 1998. The Water, Electrical, Power, Irrigation, Metals, Oil & Gas Divisions ere established subsequently. The GDRs, of the Company are listed on the Luxembourg stock exchange. The enormous trust placed by foreign institutional investors is reflected by the investment of US $ 100 million as on date by the Blackstone group of USA.

The Company has offices in Muscat (Oman) and Dubai (UAE) and has bagged projects in these countries.

Projects

Building and Housing - NCC has developed several housing, industrial and commercial complexes, IT parks, malls, stadium and hospitals. It completed projects like software complex for Patni computers (Mumbai), Indira Gandhi airport terminal (New Delhi), Cement Plant for Zuari cements (Andhra Pradesh), Indoor Stadium for Gymnastics and Wrestling (Andhra Pradesh), etc.

Transportation- Under this it has constructed highways, bridges, flyovers, railways, and ports. It has completed projects namely Ahmedabad-Vadodara Expressway (Gujarat), Road Over bridge (Bangalore), Flyover at Kalina-Vakola Junction (Mumbai) and many more.

Power and electrical- In this segment the company has built transmission lines, sub stations, under ground tunnels, open power house etc. It has constructed projects like sub transmission and distribution line (Assam), System improvement project (Andhra Pradesh), Gautami thermal power plant (Andhra Pradesh), Mini hydropower station (Andhra Pradesh) are amongst others.

Water and Irrigation- NCC has undertaken construction of water supply, water treatment, underground drainage, dams, gravity irrigation etc. It has successfully completed projects namely Gundlakamma Reservoir (Andhra Pradesh), Sewage Treatment plant (Karnataka),etc.

In metal it caters its services to sector like aluminium, zinc, copper and lead.

In 2011 Nagarjuna Construction Company Limited name was changed to NCC Limited.

Awards

2010 NCC’s Annual Report and Accounts for Year ended 31st March, 2009 were adjudged as “2nd best”
under the category “Infrastructure & Construction Sector” by ICAI Awards for Excellence in Financial Reporting


NCC has a super ranking of 103 among India's top 1000 companies.

NCC was awarded a bonus of Rupees 20 million for early completion of its projects. It's turnover for the financial year 2006-07 stood at Rs.29 billion.

NCC was one of the 200 'Best under a Billion' listed companies in the whole of Asia-Pacific by Forbes Asia in the year 2005.

The company ranked 3rd on the basis of total income in construction and allied activities sector by Dun and Bradstreet publication- India's Top 500 Companies.

Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323
Research Analyst - INH000000719

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