NCC Limited (NCC) AI Stock Analysis

• Market Cap: ₹93.80B
• Dividend Yield: 1.37%
• Average Volume (3M): 144.16K
• Price to Earnings (P/E): 13.3
• Beta (1Y): 1.73
• Revenue Growth: -5.66%
• EPS Growth: -4.66%
• Country: IN
• Employees: 6,586
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Engineering & Construction
• EPS (TTM): 1.80
• Shares Outstanding: 627,846,560
• 10 Day Avg. Volume: 128,816
• 30 Day Avg. Volume: 144,160
• PEG Ratio: 1.06
• Price to Book (P/B): 1.83
• Price to Sales (P/S): 0.60
• P/FCF Ratio: 31.72
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ₹180.00
• Price Target Upside: 11.49% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): 9.84
• Revenue Forecast (FY): ₹177.85B

• Rating: 64 Neutral
• Price Target: ₹160.00 ▼(-0.90% Downside)
• Action: Downgraded Date: 11/11/25
• Date: Action: Downgraded 11/11/25

NCC Limited's strong financial performance is the most significant factor, supported by consistent revenue growth and solid cash flow. However, bearish technical indicators and a reasonable valuation suggest caution. The lack of recent earnings call data or corporate events limits additional insights.

Positive Factors

Strong operating cash generation

NCC's operating cash flows persistently exceed reported net income and free cash flow has grown substantially. Durable cash generation supports reinvestment, funds working-capital swings, services project-related guarantees, and enables deleveraging or selective capex over the next several quarters.

Improving balance sheet strength

An improving equity ratio and generally healthy balance-sheet metrics provide greater financial flexibility for large EPC contracts. Stronger equity funding reduces immediate refinancing risk, helps secure bid bonds and mobilization advances, and supports stable capital allocation across project cycles.

Scale with margin improvement

Significant scale expansion alongside improved gross margins indicates execution capability and procurement leverage. Sustained revenue scale and better cost control underpin competitive positioning in large infrastructure tenders and support margin resilience as project mix stabilizes over the medium term.

Negative Factors

Recent revenue and EPS contraction

Recent reported revenue and EPS declines signal emerging demand or execution headwinds. If these trends persist, they can reduce backlog replenishment, compress free cash flow cushions, and force tighter working-capital management—weakening the firm's ability to fund large projects without margin concessions.

Significant debt exposure

The summary flags significant debt levels despite improvements in equity metrics. Elevated leverage increases sensitivity to interest-rate rises and cash-flow volatility; it can constrain bidding capacity, raise financing costs for performance guarantees, and limit flexibility in capital allocation over months.

EBIT margin volatility

Volatile EBIT margins driven by operating expense swings reduce predictability of project-level profitability. For an EPC firm this complicates tender pricing and risk allocation, potentially leading to conservative bidding or acceptance of lower-margin work, pressuring sustainable earnings over time.

NCC Limited Business Overview & Revenue Model

Company Description

NCC Limited engages in the construction business in India and internationally. The company constructs industrial and commercial buildings, housing projects, IT parks, shopping malls, sports complexes, and hospitals, as well as stadia; and roads, highways, flyovers, bridges, etc. It also undertakes design, engineering, erection, testing, and commissioning of transmission lines and sub-stations, as well as project electrification and various utility distribution projects; and railway projects, which include freight corridors, railway sidings, and port connectivity projects. In addition, the company constructs water supply projects, water treatment plants, distribution networks, pumping stations, river intake works, electromechanical works, underground drainage networks, lift irrigation schemes, sewage pumping stations and treatment plants, and summer storage tanks; and dams and reservoirs, canals, tunnels, and hydroelectric power projects, as well as barrages, spillways, and aqueducts. Further, it engages in the engineering, procurement, and construction of power and metal projects; and provision of mine developer-cum-operator services, as well as removal of overburden and extraction of coal/lignite/other minerals from open cast mines. The company was formerly known as Nagarjuna Construction Company Limited and changed its name to NCC Limited in March 2011. NCC Limited was founded in 1978 and is based in Hyderabad, India.

How the Company Makes Money

NCC generates revenue through multiple streams, primarily by providing IT services and solutions to a diverse client base. The company earns money from consulting services, where it advises organizations on technology implementation and strategic initiatives. A significant portion of its revenue comes from project-based work, where NCC undertakes contracts for software development and system integration. Additionally, NCC offers managed services and cybersecurity solutions, which provide recurring revenue as clients pay for ongoing support and protection of their IT infrastructure. The company also partners with technology vendors and collaborates with government agencies, which further strengthens its market position and contributes to its earnings through strategic contracts and long-term projects.

NCC Limited Financial Statement Overview

Summary

NCC Limited exhibits strong financial health characterized by consistent revenue and profit growth, stable margins, and a solid balance sheet. Despite potential risks from debt levels, strong cash flow generation and an improving equity position mitigate these concerns.

Income Statement

NCC Limited has demonstrated a solid growth trajectory in revenue, with a notable increase from ₹78,708.3 Cr in 2021 to ₹221,993.6 Cr in 2025. The gross profit margin has improved over the years, reflecting efficient cost management. However, the EBIT margin has shown some volatility, primarily due to fluctuations in operating expenses. The consistent growth in net profit margin signifies enhanced profitability, supported by a strategic focus on high-margin projects.

Balance Sheet

The company's balance sheet reflects a stable financial position with a healthy debt-to-equity ratio over the years. The equity ratio has improved, indicating a strong asset base funded by equity. However, the presence of significant debt levels poses potential risks if interest rates rise or cash flows decrease. The return on equity has generally trended positively, suggesting effective utilization of shareholders' investments.

Cash Flow

NCC Limited has shown robust operating cash flows, consistently exceeding net income, which is a positive sign of financial health. The free cash flow growth has been substantial, supporting reinvestment in the business and reducing financial risk. However, fluctuations in capital expenditures and investing cash flows could impact future liquidity.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	218.50B	221.99B	208.45B	155.53B	111.38B	79.49B
Gross Profit	33.87B	33.86B	29.95B	25.46B	18.99B	16.19B
EBITDA	18.92B	19.15B	17.69B	14.59B	10.28B	9.19B
Net Income	8.02B	8.20B	7.11B	6.09B	4.82B	2.68B
Balance Sheet
Total Assets	0.00	210.06B	180.97B	165.50B	144.58B	135.40B
Cash, Cash Equivalents and Short-Term Investments	10.16B	10.08B	6.28B	3.29B	3.00B	3.46B
Total Debt	0.00	15.94B	9.80B	9.74B	13.02B	20.62B
Total Liabilities	-75.02B	135.04B	112.86B	100.65B	85.62B	80.70B
Stockholders Equity	75.02B	73.24B	66.40B	61.67B	56.03B	51.71B
Cash Flow
Free Cash Flow	0.00	4.22B	10.74B	7.53B	11.97B	6.32B
Operating Cash Flow	0.00	7.42B	13.59B	11.00B	14.16B	8.24B
Investing Cash Flow	0.00	-585.50M	-3.19B	-1.92B	-660.40M	-1.89B
Financing Cash Flow	0.00	-2.47B	-7.71B	-8.93B	-12.75B	-5.58B

NCC Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 161.45
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:NCC, the sentiment is Negative. The current price of 161.45 is above the 20-day moving average (MA) of 152.60, above the 50-day MA of 152.43, and below the 200-day MA of 195.37, indicating a bearish trend. The MACD of -0.54 indicates Negative momentum. The RSI at 45.38 is Neutral, neither overbought nor oversold. The STOCH value of 83.75 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:NCC.

NCC Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JINDALSAW	73 Outperform	₹114.15B	10.47	―	1.18%	-13.69%	-30.57%
SANDUMA	73 Outperform	₹100.62B	18.20	―	0.18%	196.22%	71.39%
NCC	64 Neutral	₹93.80B	13.27	―	1.37%	-5.66%	-4.66%
PARADEEP	62 Neutral	₹118.90B	11.00	―	0.62%	64.80%	151.92%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
NUVOCO	55 Neutral	₹113.38B	29.51	―	―	5.09%	458.10%

NCC Limited Corporate Events

Delhi High Court Puts NHAI Debarment of NCC in Abeyance

NCC Limited has informed the stock exchanges that the Delhi High Court has granted interim relief in relation to a debarment order issued by the National Highways Authority of India. The court has directed that the NHAI debarment remain in abeyance until 10 March 2026, temporarily allowing NCC to avoid the immediate operational and bidding restrictions that such an order could entail.

The company has stated it will pursue further relief before the appropriate forum as permitted under the court’s order. This development offers short-term regulatory reprieve and reduces near-term uncertainty for stakeholders, while the underlying dispute over the NHAI action remains unresolved and could still affect NCC’s future participation in highway projects.

NCC Limited Confirms SEBI Compliance on Share Dematerialisation for Q3 FY2025-26

NCC Limited has disclosed that its registrar and transfer agent, KFin Technologies Limited, has certified compliance with Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018 for the quarter ended December 31, 2025, covering the dematerialisation of its equity shares. The certification confirms that physical share certificates received during the quarter were duly verified, mutilated and cancelled, with the depository recorded as the registered owner, underscoring NCC’s adherence to securities market regulations and reinforcing transparent shareholding practices for investors and regulators.

NCC Publishes Postal Ballot Notice in Line With SEBI Disclosure Norms

NCC Limited has notified the stock exchanges that it has published a postal ballot notice in leading newspapers, in compliance with disclosure requirements under SEBI’s Listing Regulations. The notice, carried in the Financial Express (English) and Mana Telangana (Telugu) on December 27, 2025, ensures shareholders are formally informed of matters to be decided via postal ballot, underscoring the company’s adherence to regulatory norms and its ongoing engagement with investors through prescribed corporate governance processes.