Rs 62 to Rs 273: This Jhunjhunwala stock turned into multibagger in two years, approached record high today

Shares of construction firm NCC have turned multibagger in the the last two years. NCC stock which closed at Rs  62.1 on May 13, 2022 rose to Rs 273 in today's trade, delivering 339% returns druing the period. In comparison, the benchmark BSE 500 index has climbed 51.69% during the period. NCC shares rose 8% to a high of Rs 272.95 against the previous close of Rs 251.05 on BSE. It touched a record high of Rs 277.90 on April 5, 2024. 

NCC stock is trading higher than the 20-day, 50-day, 100-day and 200-day moving averages.

NCC share has gained 140% in one year and risen 62% since the beginning of this year. Market cap of the firm stood at Rs 16,989 crore. Total 9.94 lakh shares of the firm changed hands amounting to turnover of Rs 26.53 crore on BSE. 

In terms of technicals, the relative strength index (RSI) of NCC stands at 53.6, signaling neither the stock is overbought nor oversold. NCC stock has a one-year beta of 1.2, indicating high volatility during the period. The rally in the stock came today after the firm reported Q4 and FY24 earnings.

NCC on Wednesday (May 15) reported a 25.2% year-on-year (YoY) increase in net profit at  Rs 239.2 crore for the fourth quarter that ended March 31, 2024. Profit climbed to Rs 239.2 crore in Q4 against Rs 191 crore in the March 2023 quarter.

Revenue from operations climbed 31 percent to Rs 6485 crore in Q4 against Rs 4949 crore in the March 2023 quarter. 

EBITDA climbed 18.5% to Rs 550.4 crore in the fourth quarter of this fiscal over Rs 464.6 crore in the corresponding period of the previous fiscal.

However, EBITDA margin slipped to 8.5% in Q4 against 9.4% in the year-ago period. EBITDA is earnings before interest, tax, depreciation, and amortisation.

Nuvama has a price target of Rs 290 with its buy call intact for the NCC stock.

"Robust order intake and execution lead us to revise FY25E/26E EPS upwards by 4%/7%. Maintain ‘BUY’ with a revised target price of Rs 290 (Rs 267 earlier) based on 18x Q4FY26E EP," said Nuvama. 

In the March 2024 quarter, Rekha Jhunjhunwala, wife of late investor Rakesh Jhunjhunwala held 10.64% stake or 6.67 crore shares of the construction firm. 

NCC Limited is engaged in construction/project activities in the infrastructure sector. The company is engaged in the infrastructure sector, primarily in the construction of industrial and commercial buildings, housing projects, roads, bridges and flyovers, water supply and environment projects, mining, power transmission lines, irrigation, and hydrothermal power projects, real estate development.