Buy Ncc, target price Rs 298: IIFL Securities

IIFL Securities maintains a bullish stance on NCC, giving it a "buy" recommendation with a target price of Rs 298. The current market price of NCC is Rs 289.7, indicating a potential upside of 2.8%. This recommendation is based on the company's strong execution capabilities, healthy order book, and favorable industry tailwinds. NCC's expertise in infrastructure development and its focus on strategic partnerships are expected to drive future growth.

About Ncc:

NCC Ltd. is a construction company based in India. It provides engineering, procurement, and construction services for various sectors, including power, transportation, irrigation, oil and gas, and urban infrastructure. The company was founded in 1948 and is headquartered in Mumbai. NCC has a strong presence in India and has also executed projects in several other countries, including the Middle East, Africa, and South Asia.

52 Week Price Trend:

NCC's current market price (CMP) of Rs 289.7 lies within a wide range of values established over the past 52 weeks, with a high of Rs 264.95 and a low of Rs 88.25. This significant spread suggests that the stock has experienced considerable volatility in recent times. Investors considering NCC should carefully evaluate the reasons behind this volatility and assess the potential risks and rewards associated with investing in the company. It's important to conduct thorough research, consider market conditions, and consult with financial advisors before making any investment decisions.

Stratzy's MOST Analysis:

NCC's AAA rating from Stratzy's MOST framework indicates that the company has been assessed as having the lowest level of fundamental risks. This rating is based on four pillars: Management, Outlook, Safety, and Trend. Stratzy's analysis suggests that NCC has strong management, a positive outlook, a high level of safety, and a favorable trend. These factors contribute to NCC's overall low risk profile, making it an attractive investment option for investors seeking stability and low volatility.

Company's Fundamentals:

NCC (NSE: NCC) is a prominent construction company in India. Evaluating its financial health, the stock's Price-to-Earnings (PE) ratio of 23.69 indicates that investors are willing to pay 23.69 times the company's earnings for each share. The Price-to-Book (PB) ratio of 2.53 suggests that the market value of NCC's assets is 2.53 times higher than its book value. Moreover, the Dividend Yield of 0.87% implies that investors can expect to receive 0.87% of the stock's current price as annual dividends, providing a modest passive income stream.

Fundamental and Technical information provided in this blog were last updated on 29 May, 2024

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