Stocks

Broker's call

| Updated on January 20, 2018 Published on May 23, 2016

AUM Capital

NCL Ind (Buy)

CMP: ₹125.05

Target: ₹157

NCL Industries Ltd is the flagship company of the NCL Group, which has been serving the construction industry for the past 28 years with top quality cement, popularly, known as Nagarjuna Cement. The company operates its business through segments, including cement, boards, prefab structures, hydel energy and ready-mix concrete (RMC). Investment rationale: For the period of 9MFY16, the company has reported a strong growth in its financials. Its topline and operating profit grew by about 31 per cent and about 151 per cent y-o-y respectively. It has reported a net profit of about ₹42 crore as against a loss of about ₹10 crore for the same period last year.

The government’s focus on infrastructure spending along with the initiatives such as development of 98 smart cities is expected to provide a major boost to the cement sector. The advent of new capital of Andhra Pradesh and the housing projects announced by the State Government may support the company’s business, as it has a strong presence in Telangana and Andhra Pradesh.

Published on May 23, 2016
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