NCC Ltd Stock Falls to 52-Week Low of Rs.136 Amidst Market Pressure

Stock Price Movement and Market Context

On 19 Feb 2026, NCC Ltd opened with a notable gap down of 9%, reflecting investor caution. The stock reached an intraday low of Rs.136, its lowest level in the past year, significantly below its 52-week high of Rs.242. This decline contrasts with the broader market, where the Sensex, despite a sharp reversal, remains only 3.24% below its 52-week high of 86,159.02. The Sensex closed at 83,457.80, down 0.33% for the day, after initially opening 235.57 points higher.

NCC Ltd’s performance has lagged considerably behind the market benchmark. Over the last 12 months, the stock has delivered a negative return of -21.89%, while the Sensex has gained 9.88%. This underperformance is further highlighted by the stock trading below all key moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — signalling sustained downward momentum.

Financial Performance and Profitability Metrics

The recent quarterly results have contributed to the stock’s subdued performance. For the quarter ended December 2025, NCC Ltd reported a Profit Before Tax (PBT) of Rs.183.12 crores, representing a decline of 22.6% compared to the average of the previous four quarters. Similarly, Profit After Tax (PAT) fell by 25.7% to Rs.147.53 crores in the same period. These declines have weighed on investor sentiment and are reflected in the stock’s current valuation.

Return on Capital Employed (ROCE) for the half-year stood at 17.29%, the lowest level recorded recently, indicating a moderation in capital efficiency. Despite this, the company maintains a relatively high ROCE of 16.94% on a broader basis, suggesting that management continues to generate reasonable returns on invested capital.

Valuation and Market Position

NCC Ltd’s valuation metrics reflect the current market sentiment. The stock trades at an enterprise value to capital employed ratio of 1.2, which is considered attractive relative to its peers’ historical averages. This valuation is supported by the company’s steady long-term growth, with net sales increasing at an annual rate of 22.65% and operating profit growing at 17.66% over the same period.

Despite the recent profit decline of 9.5% over the past year, the company’s ability to service debt remains strong, with a low Debt to EBITDA ratio of 0.97 times. This indicates prudent financial management and a manageable leverage position.

Sector and Industry Comparison

Operating within the construction sector, NCC Ltd faces a competitive environment. The sector itself has seen mixed performance, with the BSE500 index generating returns of 13.22% over the last year, contrasting with NCC’s negative returns. The company’s Mojo Score currently stands at 36.0, with a Mojo Grade of Sell, downgraded from Hold on 20 Oct 2025. This reflects a cautious stance based on recent financial and market developments.

Institutional investors hold a significant 26.8% stake in NCC Ltd, indicating confidence from entities with substantial analytical resources. This level of institutional holding often suggests a degree of stability in shareholder base despite price volatility.

Recent Trading Trends and Technical Indicators

The stock’s recent trading pattern has been characterised by a two-day consecutive decline, resulting in a cumulative loss of 2.89%. The sharp gap down opening today and the intraday low of Rs.136 underline the prevailing bearish sentiment. Trading below all major moving averages further confirms the downward trend, signalling that the stock remains under pressure in the near term.

In contrast, the Sensex’s position above its 200-day moving average, despite trading below its 50-day average, suggests a more resilient broader market environment. This divergence highlights the stock-specific factors influencing NCC Ltd’s performance.

Summary of Key Financial Metrics

To summarise, NCC Ltd’s key financial indicators as of the latest reporting period include:

• Profit Before Tax (Quarterly): Rs.183.12 crores, down 22.6%
• Profit After Tax (Quarterly): Rs.147.53 crores, down 25.7%
• Return on Capital Employed (Half-Year): 17.29%
• Debt to EBITDA Ratio: 0.97 times
• Annual Net Sales Growth: 22.65%
• Annual Operating Profit Growth: 17.66%
• Mojo Score: 36.0 (Sell), downgraded from Hold on 20 Oct 2025

These figures provide a comprehensive view of the company’s current financial health and market standing.

Conclusion

NCC Ltd’s stock reaching a 52-week low of Rs.136 reflects a combination of recent earnings declines, valuation adjustments, and technical weakness. While the company maintains solid fundamentals such as strong management efficiency, healthy sales growth, and manageable debt levels, the market has responded cautiously to the recent profit contractions and price momentum. The stock’s underperformance relative to the broader market and sector peers remains a notable feature of its current profile.

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