NCC climbs 6% to 52-week high on securing Rs 8,980 cr orders in December

NCC climbs 6% to 52-week high on securing Rs 8,980 cr orders in December

NEW DELHI: Shares of NCC climbed 6 per cent in Friday’s trade after the company said it received 15 new orders in December worth Rs 8,980 crore.

In a filing to BSE, the company said: “NCC has received fifteen new orders totaling to Rs. 8,980 crore (exclusive of GST) in the month of December. These orders are received from central/state government agencies and do not include any internal orders,” it said.

Following the development, the stock rose 6.42 per cent to hit a fresh 52-week high of Rs 61.35 on BSE. At this price, the construction and engineering company is trading at a price to earnings ratio of 11.88.

The stock took out its previous 52-week high of Rs 61 it hit on January 16.

NCC’s order book stood at Rs 29,362 crore at the end of September quarter, with a book to TTM bill ratio of 4.2 times.

The management expects total order inflows to surpass Rs 10,000 crore in FY21 with continued momentum being witnessed in the buildings, roads, and water segments, ICICI Securities said in a note.

The company is operating at 80 per cent efficiency and is likely to improve further to 85-90 per cent, and at normalised level during the March quarter.

For FY21, the company has guided for Rs 7,700 crore of topline and 12.5 per cent of operating margin. Additionally, the management expects standalone debt to come down by Rs 200-300 crore by FY21-end from Rs 2,003 crore at the end of September quarter on account of better collections.

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