140% up in one year: Analysts suggest buying this midcap infra stock for long-term, check targets

On Thursday, May 16, domestic equity benchmarks Nifty50 and Sensex closed in green led by financial and information technology stocks. The leaner Sensex index rose 676.69 points, or 0.93 per cent, to settle at 73,663.72, while the 50-share index Nifty settled at 22,403.85, up 203.3 points, or 0.92 per cent. 

Meanwhile, let's take a look at analysts' call on buying this midcap infrastructure stock from a long-term perspective. 

Infra midcap stock to buy

Zee Business analyst Ashish Chaturvedi suggests investors buy NCC Limited, a civil construction stock, for 4-6 months. On Thursday, May 16, the stock closed at Rs 273.7 each, up 9 per cent or 22.7 per share on BSE.

NCC Limited - Share price target

Chaturvedi has given a target price of Rs 285 per share. The target implies an upside of around 5 per cent from Thursday's (May 16) closing price.

ICICI Direct's view on NCC stock

The brokerage maintained a 'buy' rating on NCC, one of the leading construction companies, with a target price of Rs 320 per share. The target implies an upside of around 17 per cent from Thursday's (May 16) closing price. ICICI Direct suggests buying this midcap infra stock for 12 months.

"NCC is a key beneficiary of the tailwinds in the buildings, roads, water, mining, and electrical segments. Given the strong order book visibility, and improving balance sheet strength, it is poised for healthy growth ahead. We value NCC at Rs 320, at 15x FY26 P/E, and maintain our BUY rating on the stock," the brokerage said.

NCC Q4 earnings

Construction company NCC announced its fourth quarter results for FY24 on May 15. It reported a standalone topline of Rs 5,488 crore, up 36 per cent year-on-year (YoY) led by strong execution and robust order book. However, NCC's EBITDA margins were down 120 bps YoY at 9.4 per cent. 

NCC's revenues were 37 per cent up at Rs 18,314 crore. Its adjusted PAT was up 47 per cent YoY at Rs 837 crore.  

NCC stock performance

NCC shares have rewarded investors with a return of over 140 per cent in the past 12 months. The company's shares have jumped almost 65 per cent on a year-to-date (YTD) basis and provided more than 70 per cent returns in the last six months.

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Disclaimer: The views/suggestions/advices expressed here in this article are solely by investment experts. Zee Business suggests its readers consult their investment advisers before making any financial decision.