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NCC

NSEI:NCC
Snowflake Description

Solid track record with adequate balance sheet and pays a dividend.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
NCC
NSEI
₹48B
Market Cap
  1. Home
  2. IN
  3. Capital Goods
Company description

NCC Limited operates as a construction and civil engineering company in India and internationally. The last earnings update was 56 days ago. More info.


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  • NCC has significant price volatility in the past 3 months.
NCC Share Price and Events
7 Day Returns
-10.1%
NSEI:NCC
-3.4%
IN Construction
-0.5%
IN Market
1 Year Returns
-1.4%
NSEI:NCC
3.3%
IN Construction
-2.4%
IN Market
NCC Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
NCC (NCC) -10.1% -19.7% -24.3% -1.4% -2.2% 13.3%
IN Construction -3.4% -4.9% -0.6% 3.3% 22.1% 26.4%
IN Market -0.5% -2% -4.8% -2.4% 21.3% 31.2%
1 Year Return vs Industry and Market
  • NCC underperformed the Construction industry which returned 3.3% over the past year.
  • NCC outperformed the Market in India which returned -2.4% over the past year.
Price Volatility
NCC
Industry
5yr Volatility vs Market

NCC Value

 Is NCC undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of NCC to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for NCC.

NSEI:NCC Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 10 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 18.2%
Perpetual Growth Rate 10-Year IN Government Bond Rate 7.6%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NSEI:NCC
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year IN Govt Bond Rate 7.6%
Equity Risk Premium S&P Global 8.6%
Construction Unlevered Beta Simply Wall St/ S&P Global 1.03
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.035 (1 + (1- 35%) (48.76%))
1.243
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.24
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 7.55% + (1.243 * 8.6%)
18.24%

Discounted Cash Flow Calculation for NSEI:NCC using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for NCC is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NSEI:NCC DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (INR, Millions) Source Present Value
Discounted (@ 18.24%)
2020 3,395.29 Analyst x7 2,871.55
2021 4,115.29 Analyst x7 2,943.61
2022 2,106.00 Analyst x1 1,274.02
2023 1,200.83 Est @ -42.98% 614.38
2024 866.74 Est @ -27.82% 375.05
2025 717.57 Est @ -17.21% 262.61
2026 647.38 Est @ -9.78% 200.37
2027 617.71 Est @ -4.58% 161.70
2028 611.89 Est @ -0.94% 135.47
2029 621.71 Est @ 1.61% 116.41
Present value of next 10 years cash flows ₹8,955.16
NSEI:NCC DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= ₹621.71 × (1 + 7.55%) ÷ (18.24% – 7.55%)
₹6,255.58
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= ₹6,255.58 ÷ (1 + 18.24%)10
₹1,171.29
NSEI:NCC Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= ₹8,955.16 + ₹1,171.29
₹10,126.45
Equity Value per Share
(INR)
= Total value / Shares Outstanding
= ₹10,126.45 / 600.65
₹16.86
NSEI:NCC Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in NSEI:NCC represents 0.9752x of BSE:500294
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.9752x
Value per Share
(Listing Adjusted, INR)
= Value per Share (INR) x Listing Adjustment Factor
= ₹ 16.86 x 0.9752
₹16.44
Value per share (INR) From above. ₹16.44
Current discount Discount to share price of ₹78.65
= -1 x (₹78.65 - ₹16.44) / ₹16.44
-378.4%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of NCC is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for NCC's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are NCC's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NSEI:NCC PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in INR ₹9.63
BSE:500294 Share Price ** BSE (2019-07-19) in INR ₹80.65
India Construction Industry PE Ratio Median Figure of 91 Publicly-Listed Construction Companies 14.03x
India Market PE Ratio Median Figure of 2,834 Publicly-Listed Companies 14.62x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of NCC.

NSEI:NCC PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= BSE:500294 Share Price ÷ EPS (both in INR)

= 80.65 ÷ 9.63

8.37x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • NCC is good value based on earnings compared to the IN Construction industry average.
  • NCC is good value based on earnings compared to the India market.
Price based on expected Growth
Does NCC's expected growth come at a high price?
Raw Data
NSEI:NCC PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 8.37x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 10 Analysts
11%per year
India Construction Industry PEG Ratio Median Figure of 27 Publicly-Listed Construction Companies 0.89x
India Market PEG Ratio Median Figure of 535 Publicly-Listed Companies 1.29x

*Line of best fit is calculated by linear regression .

NSEI:NCC PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 8.37x ÷ 11%

0.76x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • NCC is good value based on expected growth next year.
Price based on value of assets
What value do investors place on NCC's assets?
Raw Data
NSEI:NCC PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in INR ₹76.44
BSE:500294 Share Price * BSE (2019-07-19) in INR ₹80.65
India Construction Industry PB Ratio Median Figure of 120 Publicly-Listed Construction Companies 0.83x
India Market PB Ratio Median Figure of 3,669 Publicly-Listed Companies 0.94x
NSEI:NCC PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= BSE:500294 Share Price ÷ Book Value per Share (both in INR)

= 80.65 ÷ 76.44

1.06x

* Primary Listing of NCC.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • NCC is overvalued based on assets compared to the IN Construction industry average.
X
Value checks
We assess NCC's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Construction industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Construction industry average (and greater than 0)? (1 check)
  5. NCC has a total score of 3/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

NCC Future Performance

 How is NCC expected to perform in the next 1 to 3 years based on estimates from 10 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
11%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is NCC expected to grow at an attractive rate?
  • NCC's earnings growth is expected to exceed the low risk savings rate of 7.6%.
Growth vs Market Checks
  • NCC's earnings growth is positive but not above the India market average.
  • NCC's revenue growth is positive but not above the India market average.
Annual Growth Rates Comparison
Raw Data
NSEI:NCC Future Growth Rates Data Sources
Data Point Source Value (per year)
NSEI:NCC Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 10 Analysts 11%
NSEI:NCC Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 10 Analysts 6.4%
India Construction Industry Earnings Growth Rate Market Cap Weighted Average 13.3%
India Construction Industry Revenue Growth Rate Market Cap Weighted Average 10.7%
India Market Earnings Growth Rate Market Cap Weighted Average 17%
India Market Revenue Growth Rate Market Cap Weighted Average 9.8%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NSEI:NCC Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 10 Analyst Estimates (S&P Global) See Below
All numbers in INR Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NSEI:NCC Future Estimates Data
Date (Data in INR Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-03-31 4,606
2021-03-31 145,606 5,798 7,200 10
2020-03-31 132,287 4,888 6,325 9
NSEI:NCC Past Financials Data
Date (Data in INR Millions) Revenue Cash Flow Net Income *
2019-03-31 128,956 5,787
2018-12-31 117,507 4,375
2018-09-30 104,386 3,690
2018-06-30 86,998 2,435
2018-03-31 83,906 5,858 1,686
2017-03-31 90,006 3,136 317

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • NCC's earnings are expected to grow by 11% yearly, however this is not considered high growth (20% yearly).
  • NCC's revenue is expected to grow by 6.4% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NSEI:NCC Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 10 Analyst Estimates (S&P Global) See Below

All data from NCC Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NSEI:NCC Future Estimates Data
Date (Data in INR Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-03-31
2021-03-31 11.93 13.40 8.60 9.00
2020-03-31 10.47 11.80 7.80 9.00
NSEI:NCC Past Financials Data
Date (Data in INR Millions) EPS *
2019-03-31 9.63
2018-12-31 7.30
2018-09-30 6.28
2018-06-30 4.24
2018-03-31 2.99
2017-03-31 0.57

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • NCC is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess NCC's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the India market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the India market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
NCC has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

NCC Past Performance

  How has NCC performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare NCC's growth in the last year to its industry (Construction).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • NCC has delivered over 20% year on year earnings growth in the past 5 years.
  • NCC's 1-year earnings growth exceeds its 5-year average (243.2% vs 55.9%)
  • NCC's earnings growth has exceeded the IN Construction industry average in the past year (243.2% vs 8.9%).
Earnings and Revenue History
NCC's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from NCC Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NSEI:NCC Past Revenue, Cash Flow and Net Income Data
Date (Data in INR Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 128,956.40 5,786.90 4,951.60
2018-12-31 117,506.51 4,375.24 7,068.42
2018-09-30 104,386.31 3,690.04 6,937.52
2018-06-30 86,998.41 2,434.84 6,812.42
2018-03-31 83,906.41 1,686.34 6,723.82
2017-03-31 90,005.70 316.84 7,008.29
2016-03-31 95,272.46 1,204.25 7,221.90
2015-12-31 92,352.70 1,361.31 9,115.24
2015-09-30 94,905.30 1,213.31 8,877.24
2015-06-30 96,926.20 769.70 8,664.65
2015-03-31 95,128.90 538.71 6,527.00
2014-12-31 93,180.11 48.01 8,200.61
2014-09-30 85,490.30 -160.15 8,175.89
2014-06-30 76,546.51 -230.43 8,154.08
2014-03-31 74,631.51 32.80 8,113.86
2013-12-31 72,000.99 126.79 7,423.43
2013-09-30 68,425.36 203.09 7,347.07
2013-06-30 67,932.19 418.54 3,677.10
2013-03-31 69,683.62 563.82 7,310.83
2012-12-31 70,008.17 486.86 7,221.40
2012-09-30 70,122.87 259.75 7,308.85

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • NCC has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • NCC used its assets more efficiently than the IN Construction industry average last year based on Return on Assets.
  • NCC has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess NCC's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Construction industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
NCC has a total score of 5/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

NCC Health

 How is NCC's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up NCC's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • NCC is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • NCC's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of NCC's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 4.9x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from NCC Company Filings, last reported 3 months ago.

NSEI:NCC Past Debt and Equity Data
Date (Data in INR Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 48,724.70 23,620.20 7,060.50
2018-12-31 45,775.00 21,313.40 4,309.90
2018-09-30 45,775.00 21,313.40 4,309.90
2018-06-30 43,827.71 20,608.99 1,718.80
2018-03-31 43,827.71 20,608.99 1,718.80
2017-03-31 37,762.06 25,719.21 5,475.63
2016-03-31 37,167.45 32,080.06 9,239.35
2015-12-31 37,922.80 35,046.10 11,980.00
2015-09-30 37,922.80 35,046.10 11,980.00
2015-06-30 37,228.18 33,896.66 12,120.31
2015-03-31 37,228.18 33,896.66 12,120.31
2014-12-31 31,080.20 40,033.85 9,945.57
2014-09-30 31,080.20 40,033.85 9,945.57
2014-06-30 31,339.49 39,144.69 9,935.38
2014-03-31 30,929.23 39,144.69 9,935.39
2013-12-31 29,239.51 41,718.92 3,563.79
2013-09-30 29,239.51 41,718.92 3,563.79
2013-06-30 28,454.63 36,385.59 2,948.53
2013-03-31 28,454.63 39,086.37 2,948.53
2012-12-31 28,662.89 46,831.74 2,166.28
2012-09-30 28,662.89 46,831.74 2,166.28
  • NCC's level of debt (48.5%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (126.5% vs 48.5% today).
  • Debt is well covered by operating cash flow (24.8%, greater than 20% of total debt).
  • Interest payments on debt are not well covered by earnings (EBIT is 2.7x annual interest expense, ideally 3x coverage).
X
Financial health checks
We assess NCC's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. NCC has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

NCC Dividends

 What is NCC's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
1.86%
Current annual income from NCC dividends. Estimated to be 2.12% next year.
If you bought ₹2,000 of NCC shares you are expected to receive ₹37 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • NCC's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.56%).
  • NCC's dividend is below the markets top 25% of dividend payers in India (2.23%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NSEI:NCC Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 10 Analyst Estimates (S&P Global) See Below
India Construction Industry Average Dividend Yield Market Cap Weighted Average of 48 Stocks 1.3%
India Market Average Dividend Yield Market Cap Weighted Average of 1446 Stocks 1.4%
India Minimum Threshold Dividend Yield 10th Percentile 0.3%
India Bottom 25% Dividend Yield 25th Percentile 0.6%
India Top 25% Dividend Yield 75th Percentile 2.2%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NSEI:NCC Future Dividends Estimate Data
Date (Data in ₹) Dividend per Share (annual) Avg. No. Analysts
2022-03-31 3.20 1.00
2021-03-31 1.62 5.00
2020-03-31 1.50 5.00
NSEI:NCC Past Annualized Dividends Data
Date (Data in ₹) Dividend per share (annual) Avg. Yield (%)
2019-05-24 1.500 1.546
2018-07-09 1.000 1.129
2018-05-24 1.000 0.949
2017-07-31 0.400 0.368
2017-05-23 0.400 0.447
2016-07-26 0.600 0.712
2016-05-24 0.600 0.797
2015-07-15 0.400 0.549
2014-09-15 0.200 0.279
2014-08-13 0.200 0.290
2014-07-01 0.200 0.277
2014-06-30 0.200 0.249
2014-05-15 0.200 0.266
2013-08-29 0.300 1.109
2013-05-22 0.300 1.232
2012-08-29 0.300 0.728
2012-05-29 0.300 0.791
2011-05-30 1.000 1.913
2010-05-25 1.300 0.989
2009-03-31 1.100 0.804

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of NCC's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (6.4x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (3.6x coverage).
X
Income/ dividend checks
We assess NCC's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.3%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can NCC afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. NCC has a total score of 4/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

NCC Management

 What is the CEO of NCC's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Alluri Ananta Venkata Raju
COMPENSATION ₹68,743,899
AGE 64
TENURE AS CEO 7.3 years
CEO Bio

Mr. Alluri Ananta Venkata Ranga Raju has been the Managing Director of NCC Limited (Nagarjuna Construction Co Ltd.) since April 01, 2012 and serves as its Chief Executive Officer and Executive Director. Mr. Raju served as Managing Director of NCC Infrastructure Holdings Limited. Mr. Raju has over 33 years of rich experience in the construction industry. He has been a Director of NCC Urban Infrastructure Limited since December 08, 2005. He serves as a Director of NCC Infrastructure Holdings Ltd., Western UP Tollway Ltd., Bangalore Elevated Tollway Ltd., Gautami Power Ltd., Himalaya Green Energy Pvt.Ltd, Himachal Sorang Power Pvt. Ltd and O.B.Infrastructure Ltd. He serves as a Director of NCC Infrastructure Holdings Limited. Mr. Raju served as Director of NCC Urban Infrastructure Ltd. Mr. Raju is an Under Graduate.

CEO Compensation
  • Alluri Ananta Venkata's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Alluri Ananta Venkata's remuneration is higher than average for companies of similar size in India.
Management Team

Alluri Ananta Venkata Raju

TITLE
MD, CEO & Executive Director
COMPENSATION
₹69M
AGE
64
TENURE
7.3 yrs

R. Raju

TITLE
CFO and Associate Director of Finance & Accounts
COMPENSATION
₹9M

M. Murthy

TITLE
Company Secretary
COMPENSATION
₹6M

Jampana Raju

TITLE
Whole Time Director
COMPENSATION
₹18M
AGE
60

Alluri Gopala Raju

TITLE
Executive Director
COMPENSATION
₹35M
AGE
60

Alluri Raju

TITLE
Whole Time Director
COMPENSATION
₹35M
AGE
57

Alluri Sriman Raju

TITLE
Wholetime Director
COMPENSATION
₹35M
AGE
61

Alluri Venkata Raju

TITLE
Founder & Chairman Emeritus
COMPENSATION
₹8M
AGE
82

E. Venkatesan

TITLE
Senior Vice President of Technology

S. Bhagat

TITLE
General Manager of Business Development
Board of Directors Tenure

Average tenure and age of the NCC board of directors in years:

7.3
Average Tenure
62.5
Average Age
  • The tenure for the NCC board of directors is about average.
Board of Directors

Hemant Nerurkar

TITLE
Chairman of the Board
COMPENSATION
₹625K
AGE
70
TENURE
3.7 yrs

Alluri Ananta Venkata Raju

TITLE
MD, CEO & Executive Director
COMPENSATION
₹69M
AGE
64

Jampana Raju

TITLE
Whole Time Director
COMPENSATION
₹18M
AGE
60
TENURE
7.3 yrs

Alluri Gopala Raju

TITLE
Executive Director
COMPENSATION
₹35M
AGE
60
TENURE
7.3 yrs

Alluri Raju

TITLE
Whole Time Director
COMPENSATION
₹35M
AGE
57
TENURE
13.5 yrs

Alluri Sriman Raju

TITLE
Wholetime Director
COMPENSATION
₹35M
AGE
61
TENURE
5.2 yrs

Alluri Venkata Raju

TITLE
Founder & Chairman Emeritus
COMPENSATION
₹8M
AGE
82
TENURE
11 yrs

Ramachandra Shastri

TITLE
Non-Executive and Independent Director
COMPENSATION
₹575K
AGE
74
TENURE
12.8 yrs

Renu Challu

TITLE
Non-Executive Independent Director
COMPENSATION
₹575K
AGE
67
TENURE
4.9 yrs

Utpal Sheth

TITLE
Non-Executive Non-Independent Director
COMPENSATION
₹275K
AGE
48
TENURE
5.8 yrs
Who owns this company?
Recent Insider Trading
  • NCC individual insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (₹) Value (₹)
29. Jun 19 Sell V. Radhakrishna Individual 27. Jun 19 27. Jun 19 -25,000 ₹102.00 ₹-2,549,999
26. Jun 19 Sell V. Radhakrishna Individual 21. Jun 19 24. Jun 19 -25,179 ₹101.00 ₹-2,543,078
03. Nov 18 Sell Sirisha Projects Private Limited Company 01. Nov 18 01. Nov 18 -127,500 ₹78.12 ₹-9,959,809
03. Nov 18 Sell Alluri Raju Individual 01. Nov 18 01. Nov 18 -127,500 ₹78.11 ₹-9,959,408
X
Management checks
We assess NCC's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. NCC has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

NCC News

Simply Wall St News

We Think NCC (NSE:NCC) In Taking Some Risk With Its Debt

Since NCC does have net debt, we think it is worthwhile for shareholders to keep an eye on the balance sheet, over time. … While NCC's low debt to EBITDA ratio of 1.05 suggests only modest use of debt, the fact that EBIT only covered the interest expense by 2.69 last year does give us pause. … If you're interested in investing in businesses that can grow profits without the burden of debt, then check out this free list of growing businesses that have net cash on the balance sheet.

Simply Wall St -

Do NCC's (NSE:NCC) Earnings Warrant Your Attention?

See our latest analysis for NCC How Fast Is NCC Growing Its Earnings Per Share? … Although NCC certainly looks good to me, I would like it more if insiders were buying up shares. … If you like to see insider buying, too, then this free list of growing companies that insiders are buying, could be exactly what you're looking for.

Simply Wall St -

NCC Limited (NSE:NCC) Earns Among The Best Returns In Its Industry

The formula for calculating the return on capital employed is: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for NCC: 0.25 = ₹14b ÷ (₹147b - ₹90b) (Based on the trailing twelve months to March 2019.) Therefore, NCC has an ROCE of 25%. … Due to the way the ROCE equation works, having large bills due in the near term can make it look as though a company has less capital employed, and thus a higher ROCE than usual. … Our Take On NCC's ROCE The ROCE would not look as appealing if the company had fewer current liabilities.

Simply Wall St -

Does NCC Limited's (NSE:NCC) P/E Ratio Signal A Buying Opportunity?

The formula for P/E is: Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS) Or for NCC: P/E of 11.93 = ₹114.9 ÷ ₹9.63 (Based on the trailing twelve months to March 2019.) Is A High Price-to-Earnings Ratio Good? … The higher the P/E ratio, the higher the price tag of a business, relative to its trailing earnings. … Hypothetically, a company could reduce its future P/E ratio by spending its cash (or taking on debt) to achieve higher earnings.

Simply Wall St -

Is NCC Limited's (NSE:NCC) CEO Paid Enough Relative To Peers?

This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. … It would therefore appear that NCC Limited pays Alluri Ananta Venkata Raju more than the median CEO remuneration at companies of a similar size, in the same market. … We compared total CEO remuneration at NCC Limited with the amount paid at companies with a similar market capitalization.

Simply Wall St -

NCC Limited (NSE:NCC) Insiders Have Been Selling

So before you buy or sell NCC Limited (NSE:NCC), you may well want to know whether insiders have been buying or selling. … But logic dictates you should pay some attention to whether insiders are buying or selling shares. … As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.'.

Simply Wall St -

Should NCC Limited (NSE:NCC) Be Your Next Stock Pick?

As an investor, I look for investments which does not compromise one fundamental factor for another. … By this I mean, I look at stocks holistically, from their financial health to their future outlook. … is a company with great financial health as well as a.

Simply Wall St -

How Does Investing In NCC Limited (NSE:NCC) Impact The Volatility Of Your Portfolio?

Beta can be a useful tool to understand how much a stock is influenced by market risk (volatility). … A stock with a beta below one is either less volatile than the market, or more volatile but not corellated with the overall market. … In comparison a stock with a beta of over one tends to be move in a similar direction to the market in the long term, but with greater changes in price.

Simply Wall St -

Could NCC Limited's (NSE:NCC) Investor Composition Influence The Stock Price?

Conversely, insiders often decrease their ownership over time. … Taking a look at our data on the ownership groups (below), it's seems that. … We can zoom in on the different ownership groups, to learn more about NCC

Simply Wall St -

Should You Investigate NCC Limited (NSE:NCC) At ₹110?

led the NSEI gainers with a relatively large price hike in the past couple of weeks. … With many analysts covering the stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price? … Let’s take a look at NCC’s outlook and value based on the most recent financial data to see if the opportunity still exists

Simply Wall St -

NCC Company Info

Description

NCC Limited operates as a construction and civil engineering company in India and internationally. It operates through Buildings and Housing, Roads, Electrical, Water and Environment, Irrigation, Railways, Power, Metals, and Mining divisions. The company constructs industrial and commercial buildings, housing projects, IT parks, shopping malls, sports complexes, and hospitals, as well as stadia; and roads, highways, bridges, flyovers, etc. It also engages in the design, engineering, erecting, testing, and commissioning of electricity transmission lines and sub-stations, as well as project electrification and various utility distribution projects; and undertakes freight corridors, railway sidings, and railway projects, as well as construction projects primarily in Kuwait, Oman, and the United Arab Emirates. In addition, the company constructs water supply projects, water treatment plants, distribution networks, pumping stations, river intake works, electromechanical works, underground drainage networks, lift irrigation schemes, sewage pumping stations and treatment plants, and summer storage tanks; and dams and reservoirs, canals, tunnels, and hydroelectric power projects, as well as barrages, spillways, and aqueducts. Further, it engages in the engineering, procurement, and construction of power and metal projects; and provides mine developer-cum-operator services, as well as removal of overburden and extraction of coal/lignite/other minerals from open cast mines. The company was formerly known as Nagarjuna Construction Company Limited. NCC Limited was founded in 1978 and is based in Hyderabad, India.

Details
Name: NCC Limited
NCC
Exchange: NSEI
Founded: 1978
₹48,442,147,322
600,646,588
Website: http://www.ncclimited.com
Address: NCC Limited
NCC House,
Madhapur,
Hyderabad,
Andhra Pradesh, 500081,
India
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
BSE 500294 Equity Shares Mumbai Stock Exchange IN INR 02. Jan 2002
NSEI NCC Equity Shares National Stock Exchange of India IN INR 02. Jan 2002
BDL NCC GDR EACH REPR 1 ORD 'REGS' Bourse de Luxembourg LU USD 29. Dec 2005
Number of employees
Current staff
Staff numbers
0
NCC employees.
Industry
Construction and Engineering
Capital Goods
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/07/19 12:57
End of day share price update: 2019/07/19 00:00
Last estimates confirmation: 2019/07/09
Last earnings filing: 2019/05/24
Last earnings reported: 2019/03/31
Last annual earnings reported: 2019/03/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.