NCC Ltd.
ISIN: INE868B01028 • Market Cap: ₹8,736 Cr
The 5-Pillar Quality Audit for NCC Ltd.
Evaluated across Profitability, Financial Health, Historical Compounding, Valuation Safety, and Ownership Governance:
1. Profitability & Capital Efficiency
Weight: 25%Measures operating margins (9.0%), Return on Capital Employed (17.9%), and equity compounding (8.6%).
2. Financial Health & Solvency
Weight: 25%Debt-to-Equity is 0.44 with comfortable interest coverage and clean working capital.
3. Growth & Compounding Track Record
Weight: 20%Historical 3Y Sales CAGR (1.0%) and 3Y PAT CAGR (1.3%).
4. Valuation Multiple & Margin of Safety
Weight: 15%Trades at P/E of 12.49 vs PEG of 1.16 and Dividend Yield of 1.6%.
5. Ownership Quality & Governance
Weight: 15%Promoter holding stands at 23.1%, backed by 29.2% institutional ownership.
Key Fundamental Strengths
Attractive Valuation Margin (P/E: 12.49)
Trading at a P/E multiple of 12.49, the stock offers a favourable risk-reward entry for quality compounding.
Deep Institutional Sponsorship (29.2%)
Mutual funds, domestic DIIs, and foreign FIIs hold 29.2%, providing strong governance scrutiny.
Areas to Watch & Potential Risks
Topline Stagnation (3Y Sales CAGR: 1.0%)
Revenue growth has slowed below inflation rates, indicating cyclical demand slowdown or saturated core markets.
Sectoral & Macro Headwinds (Construction)
Subject to broader cyclical demand, raw material price shifts, and regulatory frameworks governing the Construction space.
Quantitative Strategy Eligibility
Checking NCC against established Indian wealth creation frameworks:
Coffee Can Investing Framework
Passes Saurabh Mukherjea's Coffee Can rule: 10%+ sustained revenue growth and 15%+ ROCE/ROE.
Quality Factor Screener (High RoIC + Low Debt)
Scorecard of 64/100 or leverage profile sits below strict quality index hurdles.
GARP / Value-Growth Blend
Valuation multiple or return metrics require further cyclical pullback.
Construction Sector Peer Comparison
Compare NCC directly against top industry peers by market capitalization:
| Company | 5-Pillar Score | Market Cap | P/E | ROCE | D/E | Scorecard |
|---|---|---|---|---|---|---|
| NCC Ltd. (NCC)Current | 64/100 | ₹8,736 Cr | 12.49 | 17.9% | 0.44 | — |
| Larsen & Toubro Ltd. (LT) | 69/100 | ₹5.54 Lakh Cr | 33.42 | 17.9% | 1.12 | View |
| Rail Vikas Nigam Ltd. (RVNL) | 48/100 | ₹46,517 Cr | 51.71 | 10.3% | 0.49 | View |
| NBCC (India) Ltd. (NBCC) | 79/100 | ₹23,571 Cr | 31.74 | 38.8% | 0.00 | View |
| Kalpataru Projects International Ltd. (KPIL) | 76/100 | ₹23,516 Cr | 20.69 | 22.9% | 0.43 | View |
| IRB Infrastructure Developers Ltd. (IRB) | 70/100 | ₹22,912 Cr | 24.01 | 6.0% | 0.96 | View |
Frequently Asked Questions: NCC Ltd.
Q:What is the 5-Pillar Fundamental Score for NCC Ltd. (NCC)?
NCC Ltd. has a RupeeTools Fundamental Score of 64/100, placing it in the 'Moderate / Average' category. Its pillar scores are: Profitability (57/100), Financial Health (80/100), Growth (40/100), Valuation (85/100), and Ownership Quality (60/100).
Q:Is NCC fundamentally strong for long-term investment?
NCC currently holds a moderate quality rating of 64/100. While it operates in the Construction sector, investors should monitor its profit margins before initiating long-term positions.
Q:Does NCC pass the Coffee Can Investing filter?
Yes! NCC satisfies both core pillars of Coffee Can Investing: achieving consistently high capital returns (ROCE/ROE >= 15%) alongside double-digit multi-year revenue growth.
Q:How does NCC compare against other Construction peers?
Within India's Construction sector, NCC trades at a P/E of 12.49 and generates an ROCE of 17.9%. Compare its 5-Pillar score of 64/100 against top sector peers like Larsen & Toubro Ltd. (69/100), Rail Vikas Nigam Ltd. (48/100).
Regulatory & SEBI Research Analyst Compliance Disclaimer:
This 5-pillar fundamental score is an automated quantitative health check generated purely from historical public financial statements, corporate filings, and exchange disclosures for educational and informational purposes only. It does NOT constitute investment advice, a stock recommendation, or a solicitation to buy or sell securities. RupeeTools is not a SEBI-registered Research Analyst. Please consult a SEBI-registered financial advisor before making investment decisions.