NCC share price to rise 67 pct in 12 months: Here is what experts say

The stock market has been range-bound in between 11,700 to 12,100 and the share market investors are in limbo as the US president Donald Trump has tilted towards China after giving tough times to the various global bourses on Mexican tariff stance. However, if we go by the Morgan Stanley advice, the investors should focus on stocks rather sectors and their fundamentals as it won't change overnight and if the technicals have their toll on the stock on a particular day, it will have chances to recover soon. The Nagarjuna Construction Company or NCC is one such stock. If we go by the stock market expert's advise, the infra counter is expected to rise near 67 per cent in 12-month i.e. in the long-term perspective. They are of the opinion that NCC share price may scale from its current levels (around Rs 96/stock at 1:10 PM) to Rs 162 per shares.

Speaking on the fundamentals of the NCC shares Ankita Shah, Analyst at Elara Securities said, "We continue to closely monitor on-ground progress of key ongoing projects of NCC posts our Clicks to Bricks report in May 2018. We recently visited the Mumbai-Nagpur Expressway - Package 3 in the Amravati district being executed by NCC for INR 28.5bn (9% of the adjusted order book of INR 331bn, excluding slow-moving NBCC project of INR 21bn and INR 61bn of Andhra Pradesh projects facing the risk of cancellation). The physical progress is 7% & financial of 1% as on May 2019 and expected revenue contribution from the project as per the site manager (name withheld) is INR 12bn in FY20 (9% of our FY20E revenue) and INR 15bn in FY21 (10% of our FY21E revenue). In-house execution, approvals & clearances in place, timely payments by MSRDC and an experienced team of engineers on site (mobilized from the recently completed Agra-Lucknow expressway project) are key positives."

On the suggestion to the stock market investors in regard to the NCC shares, Ankita Shah of Elara Securities said, "The fundamentals of the counter suggest an upside momentum for the NCC counter and it may show Rs 162 per share levels in the long-term perspective. We recommend stock market investors to buy for long-term and book profit when it scales around Rs 162 levels."

Standing in sync with the Elara Securities views on NCC shares Chandan Taparia, Analyst at Motilal Oswal said, "The counter looks bullish in short-term and it can show Rs 115 per stocks in short-term from current levels. An investor can take buy position in the counter but he or she must maintain a stop loss below Rs 90 as the counter has strong support at Rs 90 per stock levels."

Hence, those who want to take a long position in the counter can expect around 67 per cent on his or her investment while those who take a short-term position in the NCC counter can expect 19 per cent returns on his or her investment, say experts.