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Last Updated on: 03 December, 2024
Author: Getaka|Social: Getaka Financial Technology X (Earlier Twitter) Profile Getaka Financial Technology LinkedIn Logo

NCC Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: December 3, 2024, 9:36 pm

Market Cap 19,749 Cr.
Current Price 314
High / Low364/155
Stock P/E23.2
Book Value 109
Dividend Yield0.70 %
ROCE22.1 %
ROE11.4 %
Face Value 2.00
PEG Ratio2.01

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for NCC Ltd

Competitors of NCC Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
IITL Projects Ltd 37.2 Cr. 74.474.4/15.011.5 70.70.00 %%% 10.0
HB Estate Developers Ltd 181 Cr. 92.9125/41.024.3 80.10.00 %7.00 %2.39 % 10.0
Hazoor Multi Projects Ltd 1,072 Cr. 54.463.9/20.712.7 19.50.55 %%% 1.00
Gyan Developers & Builders Ltd 7.06 Cr. 23.533.8/6.74 12.70.00 %4.02 %3.75 % 10.0
GG Dandekar Properties Ltd 55.9 Cr. 118163/87.4 96.90.00 %1.27 %9.45 % 1.00
Industry Average18,837.95 Cr297.8546.60128.500.14%24.89%17.69%22.76

All Competitor Stocks of NCC Ltd

Quarterly Result

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales2,1272,8172,0642,5813,0153,4773,3213,3733,9104,9494,3804,7205,260
Expenses1,8712,5111,8532,3152,7393,2083,0133,0633,5334,4843,9714,4164,755
Operating Profit256306211266276269308310376465409304505
OPM %12%11%10%10%9%8%9%9%10%9%9%6%10%
Other Income251320511818732325624282829
Interest112123110120121127111123138143132153156
Depreciation45454647474648505253535353
Profit before tax12415175150126283181169242293252125325
Tax %37%22%28%19%33%17%24%19%30%31%27%31%29%
Net Profit78118541228423413713816820318486231
EPS in Rs1.171.920.821.871.253.972.092.092.513.042.761.233.51

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales6,5186,9687,2729,5139,5279,0018,39112,8968,9017,94911,13815,55317,959
Expenses5,6216,1466,5148,5138,5408,3267,51811,3037,8247,03010,11014,09416,405
Operating Profit8988237581,0009876758731,5921,0779191,0281,4591,554
OPM %14%12%10%11%10%8%10%12%12%12%9%9%9%
Other Income102911051277187-231763105272144136
Interest645595654737643513460522554480478515567
Depreciation264228235277248203172193199181187203211
Profit before tax9090-2711316746219894387363635885912
Tax %24%42%138%45%51%82%37%37%19%22%22%27%
Net Profit5645-948828139568314283494646642
EPS in Rs0.991.010.060.972.170.572.819.635.524.407.919.709.54
Dividend Payout %14%14%156%41%28%70%36%16%4%18%25%23%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2012-20132013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)-19.64%-120.00%633.33%70.83%-90.24%1637.50%308.63%-44.72%-9.87%74.56%30.77%
Change in YoY Net Profit Growth (%)0.00%-100.36%753.33%-562.50%-161.08%1727.74%-1328.87%-353.35%34.85%84.43%-43.79%

NCC Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2012-2013 to 2022-2023.

Growth

Compounded Sales Growth
10 Years:11%
5 Years:10%
3 Years:38%
TTM:25%
Compounded Profit Growth
10 Years:57%
5 Years:3%
3 Years:41%
TTM:40%
Stock Price CAGR
10 Years:15%
5 Years:41%
3 Years:62%
1 Year:85%
Return on Equity
10 Years:7%
5 Years:8%
3 Years:9%
Last Year:11%

Last Updated: Unknown

Balance Sheet

Last Updated: November 14, 2024, 7:59 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital5151111111111120120122122122126126126
Reserves2,6452,7153,2913,2813,3363,9624,4484,7845,0235,4546,0416,5146,745
Borrowings3,9093,9143,3903,2082,5722,0612,6912,1812,0621,3029749801,726
Other Liabilities4,5855,4355,7535,7215,0906,2657,4016,7246,3337,5799,40910,47511,064
Total Liabilities11,19012,11512,54512,32111,10912,40814,66013,81213,54014,45816,55018,09519,662
Fixed Assets2,8092,6082,4461,6741,0991,1581,5511,4131,4171,4431,5031,5651,598
CWIP7241181231315227224141
Investments6711,1081,1331,128729619475448440346352155149
Other Assets7,7038,3758,9559,5109,28110,60812,62111,93511,66112,66214,67316,33417,873
Total Assets11,19012,11512,54512,32111,10912,40814,66013,81213,54014,45816,55018,09519,662

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +1,6206348673953145866739318421,4161,1001,359
Cash from Investing Activity +394-67-95193376-188-61911-207-66-192-319
Cash from Financing Activity +-2,007-643-643-551-818-45389-1,047-558-1,275-893-771
Net Cash Flow7-7512937-129-56143-105777516270

Free Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow898.00820.00755.00-2.00984.00673.00871.00-1.00-1.00917.000.00-973.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days74886414116721697112126837555
Inventory Days33531221826529033810316618011710287
Days Payable278255175301335428328491565447393330
Cash Conversion Cycle130145107105122126-127-213-258-246-217-189
Working Capital Days1251341061191501531211571941208361
ROCE %9%9%12%12%8%12%21%13%11%12%19%22%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters19.68%19.68%19.68%21.11%21.99%21.99%22.00%22.00%22.00%22.00%22.00%22.00%
FIIs13.26%11.62%8.89%9.77%12.80%15.76%19.96%22.46%24.18%23.89%27.33%23.65%
DIIs11.52%12.14%12.25%11.30%13.10%12.35%12.86%12.29%11.03%10.52%10.63%11.40%
Public55.54%56.56%59.18%57.82%52.10%49.89%45.16%43.24%42.81%43.59%40.03%42.96%
No. of Shareholders2,84,0283,06,0673,38,3423,40,9693,25,1802,95,8842,87,4512,94,5813,29,4983,67,8224,05,0374,71,532

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
HSBC Small Cap Fund - Regular Plan7,859,7001.02130.96,100,0002024-12-0228.85%
Bandhan Sterling Value Fund7,000,0001.62116.596,100,0002024-12-0214.75%
ICICI Prudential Multi Asset Fund6,853,5420.41114.156,100,0002024-12-0212.35%
ICICI Prudential Infrastructure Fund6,300,0002.84104.936,100,0002024-12-023.28%
Tata Small Cap Fund6,100,0001.6101.66,100,0002024-12-020%
Bandhan ELSS Tax Saver Fund5,000,0001.5483.286,100,0002024-12-02-18.03%
ICICI Prudential Multicap Fund4,085,0300.7268.046,100,0002024-12-02-33.03%
ICICI Prudential Large & Mid Cap Fund3,900,0000.6764.956,100,0002024-12-02-36.07%
Quant Infrastructure Fund2,980,0004.3949.636,100,0002024-12-02-51.15%
Franklin Build India Fund2,500,0002.4241.646,100,0002024-12-02-59.02%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue2.002.002.002.002.00
Basic EPS (Rs.)11.329.777.914.405.59
Diluted EPS (Rs.)11.329.777.864.395.59
Cash EPS (Rs.)15.0813.3511.147.598.59
Book Value[Excl.RevalReserv]/Share (Rs.)105.75103.3096.6889.6884.60
Book Value[Incl.RevalReserv]/Share (Rs.)105.75103.3096.6889.6884.60
Revenue From Operations / Share (Rs.)332.01247.72182.63130.35145.96
PBDIT / Share (Rs.)30.1825.5917.9516.9719.68
PBIT / Share (Rs.)26.8022.3614.8914.0016.41
PBT / Share (Rs.)16.8113.9310.385.926.52
Net Profit / Share (Rs.)11.7110.138.084.625.32
NP After MI And SOA / Share (Rs.)11.329.707.914.405.52
PBDIT Margin (%)9.0910.329.8213.0113.48
PBIT Margin (%)8.079.028.1510.7311.24
PBT Margin (%)5.065.625.684.544.46
Net Profit Margin (%)3.524.084.423.543.64
NP After MI And SOA Margin (%)3.403.914.333.373.78
Return on Networth / Equity (%)10.709.878.615.186.85
Return on Capital Employeed (%)24.1021.0814.8814.9317.71
Return On Assets (%)3.923.683.331.982.43
Long Term Debt / Equity (X)0.010.010.020.030.04
Total Debt / Equity (X)0.140.150.230.330.38
Asset Turnover Ratio (%)1.201.000.720.540.59
Current Ratio (X)1.341.341.371.381.33
Quick Ratio (X)1.181.201.231.221.16
Inventory Turnover Ratio (X)4.753.843.382.483.04
Dividend Payout Ratio (NP) (%)19.4320.6110.114.5532.27
Dividend Payout Ratio (CP) (%)14.9715.467.292.7120.27
Earning Retention Ratio (%)80.5779.3989.8995.4567.73
Cash Earning Retention Ratio (%)85.0384.5492.7197.2979.73
Interest Coverage Ratio (X)3.193.122.292.162.17
Interest Coverage Ratio (Post Tax) (X)2.292.261.601.611.68
Enterprise Value (Cr.)14593.887257.234565.986360.392883.24
EV / Net Operating Revenue (X)0.700.460.400.800.32
EV / EBITDA (X)7.704.524.176.152.40
MarketCap / Net Operating Revenue (X)0.690.420.320.600.12
Retention Ratios (%)80.5679.3889.8895.4467.72
Price / BV (X)2.201.080.630.930.23
Price / Net Operating Revenue (X)0.690.420.320.600.12
EarningsYield0.040.090.130.050.29

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of NCC Ltd as of December 3, 2024 is: 290.30

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of December 3, 2024, NCC Ltd is Overvalued by 7.55% compared to the current share price 314.00

Intrinsic Value of NCC Ltd as of December 3, 2024 is: 323.87

Calculation basis:

  • Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of December 3, 2024, NCC Ltd is Undervalued by 3.14% compared to the current share price 314.00

Last 5 Year EPS CAGR: 11.56%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a low average Cash Conversion Cycle of -42.92, which is a positive sign.
  2. The company has higher reserves (4,479.92 cr) compared to borrowings (2,382.31 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (9.54 cr) and profit (367.23 cr) over the years.
  1. The stock has a low average ROCE of 13.33%, which may not be favorable.
  2. The stock has a high average Working Capital Days of 126.92, which may not be favorable.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in NCC Ltd:
    1. Net Profit Margin: 3.52%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 24.1% (Industry Average ROCE: 22.92%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: 10.7% (Industry Average ROE: 14.6%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 2.29
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 1.18
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. Stock P/E: 23.2 (Industry average Stock P/E: 34.02)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. Total Debt / Equity: 0.14
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company - Qualitative Analysis

NCC Ltd. is a Public Limited Listed company incorporated on 22/03/1990 and has its registered office in the State of Andhra Pradesh, India. Company’s Corporate Identification Number(CIN) is L72200TG1990PLC011146 and registration number is 011146. Currently Company is involved in the business activities of Construction and maintenance of water main and line connection, water reservoirs including irrigation system (canal). Company’s Total Operating Revenue is Rs. 9930.03 Cr. and Equity Capital is Rs. 121.97 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Construction, Contracting & EngineeringNCC House, Hyderabad Telangana 500081ho.secr@nccltd.in
http://www.ncclimited.com
Management
NamePosition Held
Mr. Hemant M NerurkarChairman & Ind.Director
Mr. A A V Ranga RajuManaging Director
Mr. A G K RajuExecutive Director
Mr. A S N RajuWhole Time Director
Mr. J V Ranga RajuWhole Time Director
Mr. A V N RajuWhole Time Director
Mr. Utpal ShethNon Executive Director
Mr. O P JagetiyaIndependent Director
Mrs. Renu ChalluIndependent Director
Dr. A S Durga PrasadIndependent Director
Mrs. Uma ShankarIndependent Director
Mr. Ramesh KailasamIndependent Director

FAQ

What is the latest intrinsic value of NCC Ltd?

The latest intrinsic value of NCC Ltd as on 03 December 2024 is ₹290.30, which is 7.55% lower than the current market price of ₹314.00. The stock has a market capitalization of 19,749 Cr. and recorded a high/low of ₹364/155 during the current fiscal year 2024-2025. As of Sep 2024, the company has reserves of ₹6,745 Cr and total liabilities of ₹19,662 Cr.

What is the Market Cap of NCC Ltd?

The Market Cap of NCC Ltd is 19,749 Cr..

What is the current Stock Price of NCC Ltd as on 03 December 2024?

The current stock price of NCC Ltd as on 03 December 2024 is 314.

What is the High / Low of NCC Ltd stocks in FY 2024-2025?

In FY 2024-2025, the High / Low of NCC Ltd stocks is 364/155.

What is the Stock P/E of NCC Ltd?

The Stock P/E of NCC Ltd is 23.2.

What is the Book Value of NCC Ltd?

The Book Value of NCC Ltd is 109.

What is the Dividend Yield of NCC Ltd?

The Dividend Yield of NCC Ltd is 0.70 %.

What is the ROCE of NCC Ltd?

The ROCE of NCC Ltd is 22.1 %.

What is the ROE of NCC Ltd?

The ROE of NCC Ltd is 11.4 %.

What is the Face Value of NCC Ltd?

The Face Value of NCC Ltd is 2.00.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in NCC Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE