Recent Price Movement and Market Context
On the day the new low was recorded, NCC Ltd’s stock outperformed its sector by 0.71%, despite the decline. The stock is currently trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling sustained bearish momentum. This technical positioning underscores the challenges faced by the stock in regaining upward momentum.
The broader market environment has also been unfavourable. The Sensex opened 385.82 points lower and closed down by 277.79 points at 81,516.86, a decline of 0.81%. The index has been on a three-week losing streak, falling 4.95% over this period. While the Sensex trades below its 50-day moving average, the 50DMA remains above the 200DMA, indicating mixed medium-term signals for the market.
Over the past year, NCC Ltd’s stock has underperformed significantly, delivering a negative return of 42.01%, compared to the Sensex’s positive 7.52% gain. The stock’s 52-week high was Rs.261.85, highlighting the extent of the recent decline.
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Financial Performance and Profitability Trends
The company’s recent quarterly results have contributed to the stock’s subdued performance. For the quarter ended September 2025, NCC Ltd reported a Profit Before Tax (PBT) of Rs.166.57 crore, down 33.5% compared to the average of the previous four quarters. Net Profit After Tax (PAT) stood at Rs.154.70 crore, a decline of 22.9% over the same comparative period. Net sales for the quarter were Rs.4,543.01 crore, falling 16.8% relative to the prior four-quarter average.
These declines in profitability and sales have weighed on investor sentiment, reflecting the pressures on revenue generation and margins within the construction sector. Despite these setbacks, the company maintains a strong operational foundation, as evidenced by its financial ratios.
Balance Sheet Strength and Efficiency Metrics
NCC Ltd continues to demonstrate high management efficiency, with a Return on Capital Employed (ROCE) of 16.94%, indicating effective utilisation of capital resources. The company’s ability to service debt remains robust, supported by a low Debt to EBITDA ratio of 0.97 times, which suggests manageable leverage levels relative to earnings.
Long-term growth trends remain positive, with net sales growing at an annual rate of 22.70% and operating profit increasing by 17.73% annually. The company’s valuation metrics also reflect an attractive profile, with an Enterprise Value to Capital Employed ratio of 1.1, positioning it fairly relative to its peers’ historical averages.
However, despite these strengths, the stock’s price performance has not mirrored the underlying fundamentals, with profits declining by 7.1% over the past year alongside the significant share price drop.
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Institutional Holdings and Market Perception
Institutional investors hold a significant stake in NCC Ltd, accounting for 26.8% of the shareholding. This level of institutional ownership indicates that the stock is closely monitored by investors with substantial analytical resources. The company’s Mojo Score currently stands at 36.0, with a Mojo Grade of Sell, reflecting a downgrade from Hold on 20 Oct 2025. The Market Cap Grade is rated at 3, suggesting a moderate market capitalisation relative to other listed entities.
The downgrade in grading aligns with the recent financial results and price performance, signalling caution in the near term. The stock’s underperformance relative to the BSE500 index, which has generated a 5.68% return over the past year, further highlights the challenges faced by NCC Ltd in regaining market favour.
Summary of Key Price and Performance Metrics
To summarise, NCC Ltd’s stock has reached a new 52-week low of Rs.140.8, down from its high of Rs.261.85 within the last year. The stock has declined by 42.01% over the past 12 months, contrasting with the Sensex’s 7.52% gain and the BSE500’s 5.68% positive return. The recent quarterly results showed declines in PBT, PAT, and net sales, contributing to the subdued price action. Despite these challenges, the company maintains strong capital efficiency and manageable debt levels.
Trading below all major moving averages and amid a weakening market backdrop, the stock’s current valuation reflects the market’s cautious stance. The combination of financial metrics and market trends provides a comprehensive picture of the stock’s recent performance and prevailing concerns.
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