I won’t read too much into management commentary. Majority of the times management projections 2-3 year out seldom come true especially in a highly cyclical sector.
The problem for NCC (and hence lower valuations) is their operating margins. At 10% it’s much lower than peer group. PNR Infra, KNR Constructions have been delivering EBITDA margins in the range of 20-25% for last several years. Not sure where the problem is. Having a big order book is not an issue. One can bid lower to pick up new orders.
Till they can fix their revenue mix to gear it towards high margin business, rerating to me doesn’t look possible.
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