NCC stock crashes over 14% to 11-month low after weak Q3 numbers

Shares of NCC, one of India’s largest and most diversified construction companies, plunged 14.5% in early trade on February 7, hitting a 14-month low of ₹203 per share. The sharp decline followed the company's weaker-than-expected December quarter results, which missed street estimates.

Investor sentiment was further dampened by a rise in debt levels and the management's decision to cut revenue growth and margin guidance for FY25. As a result, the stock experienced one of its worst intraday performances in recent years.

On a consolidated basis, NCC Limited reported a turnover of ₹5,382.86 crore (including other income) for the third quarter of the current financial year, compared to ₹5,287.74 crore in the corresponding quarter of the previous year.

The company recorded an EBITDA of ₹540.90 crore and a net profit attributable to shareholders of ₹193.18 crore, as against ₹505.41 crore and ₹220.55 crore, respectively, in the same quarter last year.

The basic and diluted EPS for the third quarter stood at ₹3.08, compared to ₹3.51 in the corresponding quarter of the previous year.

Its turnover of ₹16,165.55 crore (including other income) for the nine months of the current financial year, compared to ₹14,440.86 crore in the corresponding period of the previous year.

The company recorded an EBITDA of ₹1,361.76 crore and a net profit attributable to shareholders of ₹566.06 crore for the nine-month period ended December 31, 2024, as against ₹1,218.36 crore and ₹471.53 crore, respectively, in the same period last year.

The basic and diluted EPS for the nine-month period stood at ₹9.02, compared to ₹7.51 in the corresponding period of the previous year.

Stock down 43% since July

Shares of the company have been on a steady downward trajectory over the past seven months, declining from ₹364.50 to the current trading price of ₹208, marking a sharp 43% drop. However, despite this decline, the stock has still delivered a multibagger return of 320% over the last five years.

NCC is one of India's largest infrastructure conglomerates, with a diversified presence across key construction segments, including buildings and housing, roads, water and environment, irrigation, metals, mining, and railways. The sector continues to benefit from the government's strong focus on infrastructure spending.

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