Shares of NCC Ltd, a prominent infrastructure company, are projected to see a significant 27% upside, according to brokerage firm Nuvama. This forecast follows the company's Q4 earnings report and the announcement of a 110% dividend for its shareholders.
Q4 Performance and Dividend Details
For the quarter ended March 2026, NCC Ltd reported a net profit of Rs 206 crore, marking a 19% decrease from Rs 253.8 crore in the same period last year. Despite the profit decline, the company's revenue saw a slight increase of 1.7% year-on-year, reaching Rs 6,232.7 crore, up from Rs 6,130.9 crore. EBITDA for the quarter was Rs 550.4 crore, a marginal 1.1% dip from Rs 556.3 crore, with the EBITDA margin standing at 8.8%.
The company's board has recommended a dividend of Rs 2.20 per equity share, which translates to 110% of the face value of Rs 2. This dividend is subject to approval at the upcoming Annual General Meeting. NCC has set Friday, August 14, 2026, as the record date for determining eligible shareholders.
Nuvama's Analysis and Revised Target Price
Brokerage Nuvama has maintained a 'BUY' rating on NCC shares and revised its target price upwards to Rs 203, an increase from its previous target of Rs 181. This new target suggests a potential 27% gain from the stock's recent closing price of Rs 152.65.
Nuvama highlighted NCC's robust order book, which grew 16% to Rs 83,004 crore for the full financial year 2026, indicating strong future revenue visibility. The brokerage noted improved working capital cycles and a reduction in net debt, attributing these positive developments to increased payment inflows in Q4 FY26, which are facilitating project execution.
While acknowledging strong order inflows, Nuvama cautioned that potential margin pressure due to geopolitical issues could impact future earnings. Consequently, the brokerage has slightly lowered its FY27E/28E EPS estimates by 4%.
Key Stakeholder and Company Overview
Late investor Rakesh Jhunjhunwala's wife, Rekha Jhunjhunwala, held a significant stake in NCC Ltd, owning 12.48% or 7.83 crore shares of the firm as of the quarter ended March 2026.
NCC Limited is actively involved in construction and project activities across various infrastructure sectors. Its diverse portfolio includes industrial and commercial buildings, housing projects, roads, bridges, flyovers, water supply and environmental initiatives, mining, power transmission lines, irrigation, and real estate development.