Multibagger Jhunjhunwala stock in correction mode, here's what brokerages say     

Shares of Jhunjhunwala portfolio constituent NCC Ltd are  down 24% in 2025. The multibagger stock has gained 254% in three years and risen 1113.58% in five years. However, the Jhunjhunwala stock has lost 9.66% in a year. Late investor Rakesh Jhunjhunwala's wife Rekha Jhunjhunwala owned 10.63% or 6.67 crore shares of NCC during the quarter ended December 2024

The short-term correction in the stock is likely to subside, according to ICICI Securities. The brokerage has initiated coverage on the stock. It has assigned a price target of Rs 239 valuing the business at 15x FY27E earnings.

The brokerage said NCC has a strong hand over project execution in the building segment historically. It has a  high revenue CAGR growth of 16% in FY18-24 backed by stable EBITDA margins of 9-10%

The brokerage further said NCC has an order backlog of Rs 52,400 crore, as of September 2024, which amounts to a book-to-bill ratio of 2.7x. 

Considering the payment related issues, the company has witnessed an increase in working capital to 95 days in Q3FY25 from 52 days in FY24, added the brokerage.  

Meanwhile,  NCC shares ended on a flat note at  Rs 209.10 on Friday against the previous close of Rs 208.60 on BSE.

Market cap of the firm stood at Rs 13,128 crore. Total 5.04 lakh shares of the firm changed hands amounting to turnover of Rs 10.58 crore on BSE. 

In terms of technicals, the relative strength index (RSI) of NCC stands at 59.2 signaling neither the stock is overbought nor oversold on charts. The stock has a one-year beta of 1.9, indicating very high volatility during the period.

 Axis Securities has a target of Rs 213 on the stock. 

It is bullish on NCC's robust order book of Rs 55,548 crore across various segments, providing revenue visibility for the next 2-3 years. 

"With its strong execution track record, the company is well-positioned for steady revenue growth. We expect it to achieve a CAGR of 14%/17%/23% in Revenue/EBITDA/APAT, respectively, over FY25E-27E," said Axis Securities. 

ICICI Direct Research has a price target of Rs 265 on the NCC stock.

"NCC is a key beneficiary of the tailwinds in the buildings, roads, water, mining and electrical segments. Given the strong order book visibility, execution is likely to improve ahead. We value NCC at Rs 265 (vs. Rs 400, earlier), now valuing it at 12x FY27  (vs. 15x, earlier), and maintain our BUY rating on the stock," said the brokerage. 

Key risks to the brokerage's projections are lower than expected order inflows and heightened competitive
intensity impacting margins.

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.