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| 02 October, 2023, 11:18 AM IST | Today's Paper
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Business News›Wealth›Invest›This construction stock gave 108% returns last year; 5 reasons to be bullish on the scrip
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    This construction stock gave 108% returns last year; 5 reasons to be bullish on the scrip

    NCC stock trades at a 12-month forward PE of 11.4 times, which is over 22% discount to the construction and engineering industry median forward PE

    Synopsis

    The company will benefit from increased government spending on the infrastructure sector. Various business divisions are expected to perform better in the future. The government’s logistics infrastructure push is creating opportunities in the transportation vertical, while the growing electricity demand will support the electrical segment. The Ministry of Jal Shakti’s aim to provide a functional tap connection to every rural household by 2023-24 will boost the water segment. Analysts expect better performance due to increased government spending, strong order book, and strong risk management framework.

    The construction and infrastructure development company reported a strong performance in the June 2023 quarter, supported by healthy execution, momentum in Jal Jeevan Mission orders, and moderation in input costs. The revenue and net profit grew 29.7% and 35.2%, respectively, on a y-o-y basis, and surpassed Reuters-Refinitiv estimates by 6.1% and 3.9%, respectively. The company has a diversified order book that is spread across buildings, water,
    BY
    ET Bureau
    4 mins read
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