Veteran investor Rakesh Jhunjhunwala has increased stake in construction and engineering company NCC Ltd through the portfolio of his wife Rekha Jhunjhunwala. The investor who is called the big bull of Dalal Street invests in both his name and his wife Rekha.
The couple has been holding shares of NCC since December 2015. Jhunjhunwala Invested in NCC for the first time in December 2015 through his wife Rekha and from March 2016 he bought more stake in his name.
Although Jhunjhunwala did not amend his own stake in NCC, he increased his stake in the company to 0.72% through the portfolio of his wife Rekha.
NCC’s latest shareholding data on the exchanges showed that Rekha Jhunjhunwala’s stake in the company now stands at 16 million equity shares or 2.62% as of March 2022.
As of December 2021, Rekha’s shareholding stood at 1.16 crore equity shares or 1.90% in NCC.
On the other hand, Rakesh’s stake in NCC remains unchanged at 6,67,33,266 equity shares or 10.94% of NCC.
Closed on NCC shares on Wednesday 69.60 each, down 0.71% on the BSE. At current price, NCC is at market valuation 4,244.53 crore.
Jhunjhunwala bought a stake in NCC despite the stock improving in a year.
Shares of NCC have fallen around 3% so far in 2022. Meanwhile, shares are down more than 8% in a year compared to Wednesday’s closing price. NCC shares fall 75.8 app on BSE on 13 April 2021.
Currently, NCC shares have a 52-week high and low 98.45 per more 55.80 each respectively.
For the nine months of FY22, NCC has reported total income 7,716.92 crore (including other income) as against 5,222.99 crore in the corresponding nine-month period of the previous year. was on EBITDA 754.08 crore and the net profit attributable to the shareholders of the company was 240.28 crores in 9MFY22 as compared to 613.39 crore and 151.48 crore in the corresponding period of last year. The company has posted a basic EPS of Diluted EPS of 3.94 and 3.92 against basic and diluted EPS in 9MFY22 2.48 In the same nine months of the previous year.
The market will currently be impacted by Q4 FY22 earnings, and volatility in NCC shares is likely to follow the trend. Q4 earnings have taken center stage for stocks listed on the exchanges. NCC will also be in focus ahead of its financial performance for the fourth quarter ending March 2022. NCC is seen to record a good quarter in the fourth quarter.
Ashish Shah, Research Analyst, and Vaibhav Shah, Research Associate, Centrum for Infrastructure Sector Q4 Outlook said, “Tendering and ordering activity remained strong in Q4FY22, though the order volume for most of the listed companies came from smaller/unlisted players. Was weak due to increased competition. Performance to decline or moderately increase for most companies with low executable backlog, while NCC/KEC is expected to grow strong year-on-year. Margins stable QoQ for road developers Debt levels for diversified companies like NCC, L&T and KEC likely to decline QoQ led by an increase in year-end recovery. Major ports cargo growth at 1.9% YoY on account of lower iron ore/coal cargo The reason was muted, while container volumes on the West Coast declined by 3.6%. EXIM cargo growth for Concor is expected at 1.8% YoY while for GDL remained relatively strong at 7.6% on account of increasing market share.”
Both expect the NCC to report a sharp reduction in debt levels aided by year-end recovery.
In their Q4 preview for NCC, Centrum analysts said, “Execution of rebound in Q4FY22 led by strong order backlog. Comment on recovery of AP receivables key monitorable.” Centrum analysts expect NCC to report Q4 revenue 3,035.8 crore, up 16% year-on-year, while EBITDA is seen at 3347 crores is expected to be 15.5% per annum and EBITDA margin at 11%. expected on adjusted pat 145.7 crores, an increase of 26.1% annually.