Budget 2022 Pick with Anil Singhvi: Analyst sees around 50% upside in this infra stock; know triggers

Ahead of Budget 2022, the market analyst and Chairman of Indi Trade Capital-JRG, Sudip Bandyopadhyay suggests buying the infrastructure stock of NCC for bumper returns in one year, while speaking to Zee Business Managing Editor Anil Singhvi in a special edition of Budget pick. 

NCC is one of the leading companies in the construction sector with a continuously growing order book, Bandyopadhyay said while talking about the strong fundamentals of the company. He sets a target of Rs 110 per share for 1 year. The stock on Thursday is up over 3 per cent to Rs 73.4 apiece on the BSE. 

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According to the market analyst, the public expenditure at both state and central levels has been increasing and it will grow further. On the back of this, the infra segment is in a huge focus and it will have a direct benefit to NCC, Bandyopadhyay added. 

The company’s margins are continuously improving, the analyst said, adding further it won’t be compromised from the new orders too. He estimates, the profit CAGR (compound annual growth rate between FY22-24 will be between 20-25 per cent. 

The Union Budget 2022-23 is scheduled to be presented on February 1 at around 11:00 am by Finance Minister Nirmala Sitharaman in the Parliament. Several analysts and brokerage houses expect the infrastructure segment likely to get mega announcements from the government.  

The stock has underperformed in the last one year to the BSE Small-cap index, as it made an average growth of over 22 per cent against over 61 per cent rise in the broader market index. 

NCC shares on Thursday gained 4.5 per cent intraday to touch day’s high level of Rs 74.3 per share on the BSE. At around 02:30 pm, it is up almost 4 per cent to Rs 73.9 per share on the BSE as against 0.28 per cent rise in the S&P BSE Sensex.