By [Pradeep Saran] | October 24, 2024
NCC Limited (Nagarjuna Construction Company Limited) is one of India’s leading construction and infrastructure companies, responsible for many iconic projects that contribute to India’s growing infrastructure. With a global presence and an extensive portfolio, NCC has firmly established itself as a key player in the construction industry.
Explore NCC Limited’s share price targets for 2025, 2030, 2035, 2040, and 2050. This article covers company performance, competitors, risk factors, profit-loss summary, future prospects, and FAQs to help investors make informed decisions.
Introduction
NCC Limited has been shaping India’s infrastructure since its establishment in 1978. The company has grown into a formidable player in civil engineering and construction, both in India and internationally. Its vast project portfolio includes everything from residential and commercial buildings to roads, highways, and industrial structures.
For investors eyeing a long-term investment, NCC’s strong market position and extensive experience in infrastructure projects make it an attractive opportunity. However, like any investment, understanding future share price trends is crucial. In this article, we will provide a detailed analysis of NCC’s share price predictions from 2025 to 2050, along with insights into the company’s future, risk factors, competitors, and profit-loss summary.
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NCC Share Price Targets from 2025 to 2050
We will present yearly share price targets for NCC from 2025 to 2050. This will help you understand the growth trajectory and potential investment value of the company.
Year | Minimum Price (₹) | Maximum Price (₹) |
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2025 | ₹610 | ₹825 |
2030 | ₹1150 | ₹1410 |
2035 | ₹1850 | ₹2150 |
2040 | ₹2250 | ₹2550 |
2050 | ₹4600 | ₹4900 |
2025 NCC Share Price Target: ₹610 – ₹825
In 2025, NCC is expected to continue benefiting from India’s focus on infrastructure development. The company has multiple large-scale projects lined up, including residential, commercial, and industrial construction. These projects will positively influence the company’s stock price, with estimates ranging from ₹610 to ₹825.
2030 NCC Share Price Target: ₹1150 – ₹1410
By 2030, NCC’s revenue growth is projected to increase due to significant contracts for government infrastructure projects. With the Indian economy expanding and urbanization on the rise, demand for high-quality infrastructure will grow. This should result in the stock price rising to between ₹1150 and ₹1410 by 2030.
2035 NCC Share Price Target: ₹1850 – ₹2150
NCC’s consistent growth trajectory, coupled with its solid reputation in the infrastructure sector, suggests that by 2035, its share price could reach between ₹1850 and ₹2150. International projects will also contribute to this growth as NCC continues to expand its operations globally.
2040 NCC Share Price Target: ₹2250 – ₹2550
By 2040, NCC is anticipated to be one of the largest infrastructure companies in India, and its share price could see further growth. The company will continue to benefit from India’s evolving infrastructure needs, including smart cities and renewable energy projects. The stock price may range between ₹2250 and ₹2550.
2050 NCC Share Price Target: ₹4600 – ₹4900
By 2050, NCC could become a significant player in global infrastructure, leading to a share price prediction of ₹4600 to ₹4900. Given its expertise in large-scale projects and a growing presence abroad, the company’s prospects remain strong for long-term investors.
Risk Factors of Investing in NCC
- Project Delays: Construction companies like NCC are susceptible to project delays caused by regulatory issues, environmental concerns, or unforeseen circumstances.
- Debt Levels: NCC’s debt levels could pose a risk if not managed properly. High-interest rates on loans could impact profitability.
- Competition: The construction sector is highly competitive, with companies like L&T, IRB Infrastructure, and GMR Group providing strong competition. This may limit NCC’s ability to secure certain contracts.
- Economic Slowdown: Any slowdown in India’s economy could negatively impact NCC’s growth, particularly if government spending on infrastructure decreases.
NCC Competitors
NCC competes with several other prominent companies in India’s infrastructure sector, such as:
- Larsen & Toubro (L&T): One of the largest engineering and construction firms in India.
- IRB Infrastructure Developers: Specializes in highways and expressway projects.
- GMR Group: Focuses on airports, highways, and urban infrastructure.
- Hindustan Construction Company (HCC): Known for large infrastructure projects.
- JMC Projects (India) Ltd: Operates in industrial and commercial construction.
NCC Products and Services
NCC’s portfolio spans several sectors:
- Residential and Commercial Construction: Building homes, office complexes, and malls.
- Industrial Construction: Factories, warehouses, and plants.
- Infrastructure Projects: Roads, highways, flyovers, and bridges.
- Power and Energy: Hydropower projects and substations.
- Environmental Projects: Water supply, sewage treatment, and pollution control.
Future Plans of NCC
NCC has several ambitious goals for the future. The company aims to expand its international operations, particularly in the Middle East and Africa. It also plans to increase its focus on renewable energy projects, aligning with the global trend toward sustainable infrastructure.
NCC is also exploring new verticals like smart cities, a growing sector in India as the country aims to modernize its urban infrastructure. These ventures will further solidify NCC’s position as a leading construction firm.
Profit and Loss Summary
Here’s a summarized table for the Profit & Loss account of NCC (in ₹ Cr.):
Category | Mar 24 | Mar 23 | Mar 22 | Mar 21 | Mar 20 |
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Revenue from Operations (Net) | 18,314.41 | 13,190.77 | 9,860.00 | 7,179.77 | 8,199.35 |
Other Income | 124.10 | 152.25 | 108.21 | 115.60 | 151.27 |
Total Revenue | 18,438.51 | 13,503.57 | 10,038.24 | 7,371.27 | 8,370.07 |
Cost of Materials Consumed | 7,276.53 | 4,750.99 | 3,393.62 | 2,377.87 | 2,944.69 |
Employee Benefit Expenses | 640.85 | 520.42 | 429.13 | 349.35 | 435.23 |
Finance Costs | 595.11 | 510.00 | 459.60 | 457.78 | 517.87 |
Depreciation and Amortization | 209.21 | 199.81 | 182.34 | 174.09 | 177.52 |
Other Expenses | 8,748.91 | 306.77 | 232.57 | 179.38 | 258.56 |
Total Expenses | 17,470.61 | 12,718.61 | 9,575.86 | 7,033.06 | 7,884.04 |
Profit/Loss Before Tax | 911.35 | 784.96 | 608.02 | 338.21 | 453.36 |
Total Tax Expenses | 279.87 | 215.75 | 117.90 | 77.08 | 71.32 |
Profit/Loss After Tax | 631.48 | 569.21 | 490.12 | 261.13 | 382.04 |
Basic EPS (₹) | 10.06 | 9.13 | 8.04 | 4.28 | 6.34 |
Equity Dividend Rate (%) | 110.00 | 110.00 | 100.00 | 40.00 | 10.00 |
Summary:
- Revenue Growth: NCC’s revenue increased steadily, with a significant jump in FY24 (₹18,314 Cr) compared to FY23 (₹13,190 Cr).
- Profit Growth: Profit after tax also grew consistently, reaching ₹631.48 Cr in FY24.
- Expenses: Costs related to materials, employee benefits, and other expenses increased proportionally to revenue.
- EPS: Basic Earnings Per Share increased to ₹10.06 in FY24.
- Dividend: Equity dividend rate remained at 110% for FY24 and FY23.
NCC Chart
Fundamental
Growth and profitability
Financial health
Price Target
Pros and Cons of NCC Stock
Pros:
- Strong portfolio of infrastructure projects.
- Expanding international presence.
- Solid financial growth over recent years.
- Government backing for infrastructure development.
Cons:
- Potential project delays and regulatory issues.
- Increasing competition from other construction giants.
- Economic slowdowns can negatively affect growth.
FAQs
When was NCC Limited established?
What are NCC’s main areas of operation?
NCC operates in residential, commercial, and industrial construction, along with infrastructure projects like roads and bridges.
Does NCC operate internationally?
Yes, NCC has completed projects in the Middle East, Africa, and other regions.
What are the risk factors of investing in NCC?
Project delays, high debt levels, and competition are key risks.
What is NCC’s expected share price in 2030?
By 2030, NCC’s share price is expected to range between ₹1150 and ₹1410.
Does NCC pay dividends?
Yes, NCC regularly pays dividends to its shareholders.
What is NCC’s future growth plan?
NCC plans to focus on international expansion and smart city projects.
Conclusion
NCC Limited remains a strong investment option for those interested in the infrastructure sector. With an impressive track record, consistent financial growth, and ambitious future plans, NCC is well-positioned to continue thriving. However, potential investors should be mindful of the risks associated with construction projects and the competitive landscape. Long-term investment in NCC could yield substantial returns as India’s infrastructure needs continue to expand.
Disclaimer: This forecast is based on available information and analysis. Actual stock prices can be influenced by various factors, including geopolitical events, unforeseen circumstances, and changes in market sentiment. It is essential to conduct thorough research and consider multiple factors before making any investment decisions.
Alert: This is just an estimate that the share target of NCC can be this much. If you want to invest then talk to an advisor and then invest. www.Homedecore24.com will not take any responsibility if your money is lost. Please invest money at your own risk.