Jhunjhunwala stock falls 4% post Q2 earnings, here are fresh price targets 

Shares of NCC Ltd slipped nearly 4% in early deals on Friday after the infra major reported its earnings for the September quarter ended 2024. NCC stock fell 3.82% to Rs 305.25 today amid high volatility in the broader market. Rekha Rakesh Jhunjhunwala, wife of late investor Rakesh Jhunjhunwala, held 7.83 crore shares or 12.48 per cent stake in the firm at the end of September 2024 quarter. 

Net profit in Q2 nearly doubled to Rs 174.8 crore compared to a net profit of Rs 86.2 crore during the same quarter last year.

Revenue climbed 10% to Rs 5,196 crore in Q2 against Rs 4,719.6 crore reported during the year-ago quarter.

Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA)rose 45.8% on a year-on-year basis to Rs 443 crore from Rs 303.7 crore last year.

EBITDA margin in Q2 rose over 200 basis points to 8.5% from 6.4% from the base quarter last year.

NCC share has gained 425% in five years and risen 327.19% in two years. Market cap of the firm stood at Rs 19,284 crore. Total 2.77 lakh shares of the firm changed hands amounting to turnover of Rs 8.59 crore on BSE. 

In terms of technicals, the relative strength index (RSI) of NCC stands at 60.4, signaling neither the stock is overbought or oversold. The stock has a one-year beta of 1.9, indicating very high volatility during the period.

Here's a look at what brokerages said on the outlook of the stock. 

Nuvama 

The brokerage has revised upward its price target to Rs 382 against Rs 368 earlier. 

"Robust execution along with potential new opportunities in Andhra Pradesh remain key positives for the company; maintain ‘BUY’ with a revised target price of INR382 (earlier ~INR368), rolling forward valuations to Q2FY27E. NCC won Rs 4760 crore worth of orders during Q2FY25; it ended the quarter with an order book of Rs 52400 crore (book-to-bill of 2.7x). It is L1 in more than Rs 9000 crore projects and has a robust bid pipeline of Rs 2.1 lakh crore. The company has guided for Rs 200–Rs 2200 crore  order accretion for FY25E (Rs 51.7bn in H1FY25)," said Nuvama in its earnings review report. 

HDFC Securities

Price target: Rs 363 

"The company has a well-diversified order book, robust execution capabilities, strong focus on debt reduction and improvement in working capital. Segment diversity across building, mining, railways, electrical, water & environment is one of the key differentiators at NCC. Company’s vast experience and proven execution capabilities can help leverage rising opportunities in the buildings, water infra, transportation, metros, defense and airports as the awarding momentum picks up. Positive tailwinds with Government’s focus on infrastructure development by various schemes will also aid the growth of the company. Given the all-time high order book, execution ramp-up, and robust balance sheet we expect NCC to capture healthy growth in the medium term. We expect Revenue/EBITDA/PAT to grow at CAGR of 16%/21%/39.6% over FY24-26E. Investors can buy the stock in the band of Rs 273-303 for a target of Rs. 363 (18x FY26E EPS) till next Diwali," said HDFC Securities.  

NCC Limited is engaged in construction/project activities in the infrastructure sector. The company is engaged in the infrastructure sector, primarily in the construction of industrial and commercial buildings, housing projects, roads, bridges and flyovers, water supply and environment projects, mining, power transmission lines, irrigation, and hydrothermal power projects, real estate development.