Shares of NCC Ltd fell sharply by 14.6% on Friday, dropping to Rs 202.85 on the BSE. This decline came after the company announced that it made a net profit of Rs 193.2 crore for the third quarter ending December 2024. This profit is down 12.5% compared to Rs 220.7 crore a year earlier.
Even though revenue from operations slightly increased by 1.6% to Rs 5,344.5 crore, the company’s performance in terms of profit was disappointing. Their earnings before interest, taxes, depreciation, and amortization (EBITDA) dropped by 16.6% to Rs 420.9 crore, and their profit margin fell to 7.9% from 9.6% last year. This shows that the company is facing rising costs, which is worrying for investors.
For the nine months ending December 2024, NCC reported revenue of Rs 16,165.55 crore, which is an improvement from the previous year’s Rs 14,440.86 crore. However, their net profit of Rs 566.06 crore is lower than Rs 1,218.36 crore from the previous year.
Overall, NCC’s stock has not been doing well. It has dropped 3.3% in the past year and by a significant 31.8% over the last six months. In just the last week, it has fallen by over 12%, raising concerns among investors about its profits.
Despite these challenges, many analysts are optimistic about NCC. They suggest that its stock could reach a target price of Rs 365 per share. Of the 12 analysts following NCC, nine recommend buying the stock, one suggests holding on to it, and two say it’s best to sell.
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