There are some stocks in the portfolio of veteran investor Rakesh Jhunjhunwala, whose price is low, but the value of the share is strong. Due to strong fundamentals, they can give excellent returns going forward.
Rakesh Jhunjhunwala Portfolio Stock: There are more than one strong stock in the portfolio of stock market veteran Rakesh Jhunjhunwala. There are some stocks in his portfolio, whose value is less than Rs 100. But the value of the share is strong. Their fundamentals are strong and they can give very good returns in the coming days. One of these is NCC Ltd. which is a share of the construction company. Strong growth is visible ahead of the company’s quarterly results, in view of which brokerage house Geojit has advised to invest in the stock. The brokerage house estimates that it can give more than 30 percent return from the current price. There is a growth in the order book of the company and many new orders are in the pipeline.
32% return can be given
Brokerage house Geojit has incorporated NCC Ltd. Advised to invest in The brokerage house has given a target of Rs 130 for the stock. The current price of the share is Rs 78. In this sense, investors can get 32 percent return from the current price in the stock. The brokerage house says that the order book of NCC is very strong and the company is focusing on strengthening its balance sheet in the coming days. Talking about the order book, it is Rs 39,112 crore. The order flow in H1FY22 stands at Rs 5611 crore. Due to this, the revenue visibility is better for the next 3 to 4 years. The company is expected to get more orders due to Jal Jeevan Mission. Brokerage house ICICI Direct has also advised investment in the stock and has set a target of Rs 100.
Revenue up 43 percent year-on-year
NCC is an infra company, whose business is diversified. The company is working in every segment of the construction sector. Q2FY22 revenue grew 43 per cent year-on-year, which is better than expected. After the opening of the lockdown, the construction activity is increasing, which is getting the benefit. The EBITDA margin has decreased somewhat, but this is due to higher commodity prices. In FY22, the target of NCC is on a fresh order of 14,000 crores. Due to the uncertainty of Kovid 19, the company has not given any guidance for the future, but it is expected that the execution will accelerate in H2FY22.
What is the share of Rakesh Jhunjhunwala?
Construction Company NCC Ltd. The stock of Rakesh Jhunjhunwala is the preferred stock. The company has 78,333,266 in his portfolio, whose value at current price is close to Rs.619 crore. Rakesh Jhunjhunwala holds 12.8 percent stake in the company. Keeping confidence in the stock, he has not made any change in the shareholding of this company for the September quarter. He held 12.8 per cent stake in the company in the June quarter as well.