NCC Limited: A thriving economy and significant government infrastructure spending have been driving a boom in the Indian construction industry. In the middle of this changing environment, a major industry player is set to further strengthen its position by winning a significant contract. In addition to increasing the company’s earnings and profitability, this development is anticipated to have a major effect on the stock price.
About NCC Limited
With decades of experience completing difficult and complex projects in a variety of industries, the construction behemoth has established itself as a major force in the Indian market. The business has constantly shown its proficiency and dedication to excellence in everything from residential and commercial buildings to highways and bridges. Be it the Bihar irrigation project or the trident construction work, NCC has a list of projects that are everyday in the headlines.
Order Details
A huge order worth an incredible ₹3,389 crores has been acquired by NCC, one of India’s credible construction companies. The stock market has been shaken by this big contract victory, as evidenced by the rapid 5% increase in the company’s shares during early trade. The newly acquired order, which was granted by a well-known private organization, is under the jurisdiction of the business’s Building Division. The purchase is anticipated to be completed over a 32-month period, while the project’s specifics are still unknown. An obvious sign of NCC’s strong market position and capacity to land big contracts is this significant increase to its order book.
NCC Limited’s Financial Analysis
With sales of INR 5,196 crores, 96% of the set targets, and a growth projection in revenue of 15% for the year, NCC Limited’s Q2 FY25 statistics demonstrate resiliency. Despite certain projects contributing less because of bad weather, gross margins rose from 11.7% to 15.15 percent year over year. With an outlook of ₹ 20,000 to 22,000 Cr. in recent orders, the company’s order book now stands at INR 52,370 crores. For FY25, they predict EBITDA margins to be between 9.5% and 10%. With a sustainable debt-to-equity ratio of 0.25, debt has somewhat decreased to INR 1,732.70 crores.
Major Takeaways
A private company has placed a sizable order with NCC Limited for ₹350 crore.
The Building Division of the firm is in charge of the order, which is anticipated to be completed in 32 months.
As a result of the market’s favorable reaction to this news, NCC’s share price has increased significantly.
Due to its diverse portfolio and robust order book, the company is well-positioned for future growth.
Final Verdict
By getting a significant order as 2024 has now ended on a good note, NCC Limited has demonstrated its strength and solidified its place as a major force in the Indian infrastructure and construction industry. NCC is prepared to meet the challenges and seize the chances that positioned ahead thanks to a strong order book and a clear picture of the future.
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