Veteran investor Rakesh Jhunjhunwala has reduced his stake in construction company, NCC Ltd during the April-June 2022 quarter. During the quarter, Jhunjhunwala suffered a sharp decline in the assets of his portfolio due to market volatility amid macroeconomic risks. Shares of NCC have registered a double digit fall in one year. Rakesh who is often referred to as ‘Dalal Street Bull’ has invested in NCC shares since 2015 and has changed his stake on several occasions.
As per the latest shareholding pattern, in the June 2022 quarter, Rakesh Jhunjhunwala His wife holds 11,600,000 equity shares or 1.85% in Rekha Jhunjhunwala’s name. He also holds 66,733,266 equity shares or 10.63% in the name of Jhunjhunwala Rekha Rakesh.
Rakesh manages his and wife’s portfolio.
According to Trendline data, Rakesh’s stake in NCC had declined 0.38% to 12.4% in the June 2022 quarter. His holding price is around 458.2 crore in NCC till date.
There was a huge rise in NCC as soon as the shares closed on Monday. 58.50 up 3.45% on BSE. Shares touch intraday high 59 per. Presently N.C.C. Market hat is around 3,567.60 crore.
NCC trades on the BSE under the ‘A’ group in the S&P BSE 500 Index.
NCC shares have fallen nearly 40 per cent in one year. NCC shares were close on BSE on July 12 last year 96 levels.
NCC shares hit 52-week low 51 each on June 21, 2022.
For the entire FY 2012, NCC has achieved a total income of 11,209 crore as compared to 8,065 crore in FY22. EBITDA climbed FY22 Vs. 1,023.80 crore in 919.08 crore in the last financial year. Also, PAT jumped 482.41 crore against 268.31 crore for the financial year 2011.
In May, following the fourth quarter and FY12 earnings, Bhupendra Tiwari and research analysts Lokesh Kashikar of ICICI Securities changed their ratings from ‘Buy’ to ‘Hold’.
“Sharp debt reduction has been a significant positive. However, margin volatility is likely to be observed in FY23. Thus, we assign a hold versus buy rating first,” said analysts, adding, “We will assign NCC give importance to 70/share (at 9x FY24 P/E).”
Highlighting the triggers for future performance, analysts at NCC said, the continued momentum in carrying out activities to translate into healthy order flow for the company as well as capitalizing on the vast infrastructure pipeline is firmly placed. has gone. In addition, 10.3% revenue CAGR is expected in FY 2012-24E with a margin of 10%. Also, focus on monetization of non-core subsidiaries to bring in cash flow. Meanwhile, with a gradual decline in debt, one can expect open receivables to boost liquidity and strengthen the balance sheet.
During Q1FY23, as per the data, the assets of Jhunjhunwala declined by 24.67% to . happened 25,425.88 crore as compared to a record net worth of Rs. 33,753.92 crore in the March 2022 quarter. At present, Jhunjhunwala has 33 stocks on the exchanges.
Disclaimer: The views and recommendations given above are those of individual analysts or broking companies and not of Mint.