On Thursday, May 16, domestic equity benchmarks Nifty50 and Sensex closed in green led by financial and information technology stocks. The Sensex index rose 676.69 points, or 0.93%, to settle at 73,663.72, while the Nifty settled at 22,403.85, up 203.3 points, or 0.92%.
Now, let’s delve into analysts’ recommendation on buying a midcap infrastructure stock from a long-term perspective.
Midcap Infrastructure Stock Recommendation
Zee Business analyst Ashish Chaturvedi suggests investors buy NCC Limited, a civil construction stock, for a period of 4-6 months. As of Thursday, May 16, the stock closed at Rs 273.7 per share, marking a 9% increase on BSE.
NCC Limited – Target Price
Chaturvedi has set a target price of Rs 285 per share, indicating a potential upside of around 5% from the closing price on May 16.
ICICI Direct’s Perspective on NCC Stock
ICICI Direct maintains a ‘buy’ rating on NCC, a prominent construction company, with a target price of Rs 320 per share. This target price suggests an upside of approximately 17% from the closing price on May 16. ICICI Direct recommends buying this midcap infra stock for a duration of 12 months.
“NCC stands to benefit from positive trends in the buildings, roads, water, mining, and electrical sectors. With a strong order book and improving financial position, the company is positioned for growth. We value NCC at Rs 320, at 15x FY26 P/E, and uphold our BUY rating,” stated the brokerage.
NCC Q4 Earnings Update
NCC disclosed its fourth quarter results for FY24 on May 15, reporting a standalone revenue of Rs 5,488 crore, up 36% YoY due to robust execution and a strong order book. Despite a 120 bps YoY decline in EBITDA margins to 9.4%, NCC’s revenues surged by 37% to Rs 18,314 crore. The adjusted PAT soared by 47% YoY to Rs 837 crore.
NCC Stock Performance Summary
Over the past 12 months, NCC shares have delivered a return of over 140%. Year-to-date, the stock has surged by almost 65%, offering more than a 70% return in the last six months.
For the latest stock market updates, visit Zeebiz.com. Please note that the views expressed in this article are those of investment experts. We recommend consulting your financial advisor before making any investment decisions.
