Visit http://indiaer.blogspot.com/ for complete details Nagarjuna Const. (Rating – Buy, Target Price – Rs215)
We expect NCC to deliver revenue of Rs12.4bn (growth of 16% YoY and 14% QoQ), contributing to
22% of our FY11 expectation. Our expectation is lower than the street by 9.7%.
We expect EBITDA margins of NCC to be 10.1% lower than 10.2% in Q2FY10 and net profit to be
Rs512mn (margin of 4.1%, YoY growth of 7%) contributing 20% of the year’s profitability.
Key things to watch out for:
o Thermal power plant update at Sompetta
o Completion schedule of various road projects and strategy for bidding new projects
Company news during the period
A recent income tax raid has compounded the negative news flow for the company. However, the
company’s comments are still awaited on the matter.
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