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* NCC’s order book stands at Rs342bn (3.1x of TTM revenue), which provides a healthy revenue visibility.
* Led by sustained ramp-up in execution with strong order backlog, NCC is expected to deliver a robust performance with its revenue and APAT is likely to grow by stellar 34% YoY and 39% YoY, respectively in 4QFY19.
* The Management recently had already guided to surpass its earlier revenue growth guidance of ~45% YoY for FY19E (Rs110bn) on the back of robust order inflow and higher proportion of fasttrack projects. Further, with its strong order inflow in 4QFY19, its order book is expected to remain robust and growth momentum is likely to sustain.
* As working capital cycle remained broadly flat on QoQ basis, surge in gross debt could be a near-term overhang for the stock. Looking ahead, we expect NCC’s revenue and earnings to clock 28% and 27% CAGR, respectively over FY18-FY21E on the back of robust inflow and higher proportion of fast tract projects.
* We maintain our fundamental BUY recommendation on the stock with a SOTP-based Target Price of Rs165.
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