Fundamentals

EVEREST INDUSTRIES

Ticker: 508906 BUY: Rs.566.55
Target: Rs.635

The company is engaged in manufacturing of fibre cement products and its roofing and pre-engineered steel buildings (PEB) segments contribute majorly towards the company's overall revenue. In FY18, margin expansion was seen mainly in these two segments. The company has strong order book of Rs 300 crore till date. The launch of new value-added products and modernisation of plants would further drive company's growth. Over the next 2-3 years, the management is expecting value-added products to contribute 30-40 per cent of the total revenue. The company has no major capex plans and plans to pay off its debt. The ‘Housing for All by 2022' initiative will boost demand for building products, which will benefit the company going forward. Considering these factors, we recommend investors to BUY the scrip.



NCC

Ticker: 500294 BUY: Rs.101.35
Target: Rs.115

NCC Ltd has a well-diversified business portfolio spread across nine business verticals, namely buildings & housing, roads, water & environment, electrical, irrigation, metals, power, mining and railways. During Q1FY19, the company's order inflows were worth Rs 4170 crore and the order book stood at Rs 32,792 crore. The revenue for the quarter grew by 17.2 per cent YoY. The management has guided 45 per cent growth in topline in FY19. Its EBITDA margin improved from 8.49 per cent in Q1FY18 to 11.35 per cent in Q1FY19. The management is optimistic about maintaining the margins in FY19. Also, PAT for the quarter jumped by 63.4 per cent YoY to Rs 104 crore from Rs 63 crore. Considering the robust financial performance and strong order book, we recommend investors to BUY the scrip.