NCC stock has been cut in half after a poor Q3. Can it recover?
As one of India’s leading construction companies with a presence across buildings, roads, water, mining and power, NCC is one of the biggest beneficiaries of India’s focus on infrastructure development.
The biggest question now is where it stands at its current valuation, considering slow execution and order intake.
Elections, prolonged rains hit Q3 performance
NCC’s third-quarter performance was affected by a slow pace of execution due to elections, delayed land acquisitions and prolonged rains, which delayed the billing cycle. Consequently, revenue fell 1% year-on-year to ₹4,720 crore, while profit after tax (PAT) declined 13% to ₹185 crore due to muted execution.
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