When a stock loses 42% of its value in a year, investors have reason to worry. Is the business deteriorating, or is the share price reflecting broader weakness in the market?
That is a question NCC investors may be asking. While the stock’s decline is steep, it does not necessarily mean the company’s fundamentals have weakened to the same extent. Broader market conditions may also be weighing on the shares.
So, what could determine NCC’s performance over the next five years? Its order book, execution capabilities, profitability, working capital management and growth opportunities will all play a role. Before examining these factors, here is a brief look at the company.
NCC Ltd is a Hyderabad-based infrastructure and construction company established in 1978 as Nagarjuna Construction Company.
The company undertakes engineering, procurement and construction (EPC) projects across several sectors, including buildings, roads and highways, bridges, metro rail, railways, water supply, sewage treatment, irrigation, power transmission and distribution, and mining.