Prabhudas Lilladher has issued a 'BUY' rating on NCC Ltd with a target price of ₹200 per share in its research report dated February 08, 2026. According to the broker's analysis, the stock offers a favorable risk-reward profile, trading closer to 1x book value. The recommendation is based on valuations at 15x FY28E EPS, factoring in execution recovery and margin normalization.
NCC Ltd reported weak operational performance in Q3FY26, with standalone revenue declining 13.45% YoY to ₹4,042.89 crore as of December 2025. As reported by Prabhudas Lilladher, despite near-term execution softness in 9MFY26, the medium-term outlook remains constructive. The company's strong and diversified order book of ₹796 billion (4.5x TTM revenue) is now gradually entering the execution stage.
The company maintained healthy order inflows of ₹223 billion in 9MFY26, with traction across buildings, water, irrigation and transportation segments. According to Prabhudas Lilladher's analysis, NCC highlighted mobilization advances already received on key projects during earnings calls. This improvement could provide management comfort to reintroduce guidance post Q4FY26 results.
The recent increase in leverage with D/E ratio at ~0.40 is largely timing-driven, reflecting delayed receipts and higher working capital during mobilization. As reported by Prabhudas Lilladher, this is expected to normalize as payment flows improve. With execution expected to pick up over FY27E (modelled 10%/15% revenue growth in FY27E/28E), valuations remain attractive at current levels.
