INSTITUTIONAL EQUITY RESEARCH NCC Ltd (NJCC IN) Mass ...
9
INSTITUTIONAL EQUITY RESEARCH Page | 1 | PHILLIPCAPITAL INDIA RESEARCH NCC Ltd (NJCC IN) Mass housing site visit in AP – Execution in Full Swing ! INDIA | INFRASTRUCTURE | Company Update 9 July 2018 Last week we organized a site visit for our clients, to a mass housing project in AP, being developed by NCC. The site is part of the Prandhan Mantri Aawas Yojna (PMAY) project, awarded by the Andhra Pradesh Township Infrastructure Development Corporation Ltd (APTIDCO). The project involves construction of ~20,000 flats for EWS (Economically Weaker Section), at 8 locations in 15 months. We came back highly impressed with the scale and pace of execution on the project and its overall progress. On other projects in the orderbook, the management indicated few initial hiccups in execution on some projects – but remains confident of achieving its guided topline (Rs 110bn) with margins of 10.5% in FY19. We maintain BUY. Project/Site details The project, awarded by APTIDOC under PMAY, involves construction of 19,242 EWS Flats in G+3 (Ground Level + 3 storeys) format at 8 Locations in the East Godavari District, in AP. The project scope involves investigation, survey, planning, design, construction and handing over of 19,242 EWS Flats with Monolithic concrete construction (Share wall technology) including internal infrastructure facilities such as water supply, sanitary, and electrification. The total project cost is Rs 11.64bn – and has to be completed in fifteen months (Oct-2018), with a two year defect-liability period. Construction on the project started in Jul-2017. The site at Rajahmundry involved construction of 4200 flats, in the Municipality area of Rajamahendravaram in 3 locations. The flats for these projects are being constructed using MIVAN technology - which involves use of aluminium formwork, to erect the structure of a building, and then concrete is poured from the top, into the formwork. It takes 4-5 days for the concrete to solidify, and the structure be completed – post which, the formworks are dismantled and re-used for other projects. These formworks can theoretically be used 30-40 times, over their life. The company has invested Rs 800mn for these formworks, for this APTIDCO project - total of Rs 2bn has been invested in these formworks, for different projects by the company. The flats are being sold to the beneficiaries for Rs 700,000 each, with Rs 300,000 subsidy from the government (Rs 150,000 each from the state and centre). The developer (NCC in this case) is being paid at the rate of Rs 1600 per sqft construction cost. Key takeaways from the site visit Execution is in full swing at all but one (Kakinada) of the 8 sites. Kakinada site has been impacted by inability of the state govt in acquiring land for the project. At the Rajahmundry site, we saw flats at various stages of construction. While few 'blocks' of flats were already complete and ready to ‘move-in’, structures were being erected for other blocks.Execution had just started at some blocks, with their foundations being prepared. The completed flats were replete with all electrical and water fittings. NCC has also been given the additional responsibility of constructing the infrastructure of the colony – over the Rs 11.6bn project cost. Payment for the project are being received timely – As on 6 th July 2018, payments for execution done upto May-2018 were already received by the company. Management update on execution on other key projects The management appeared confident of being able to achieve its guidance of Rs 110bn of topline in FY19, with margins of 10.5%. It has internally targeted execution of Rs 10bn per month, for the entire year, with second half expected to be stronger than first half. The housing projects in AP, and projects in Amravati are expected to contribute ~35% to the FY19 topline. NBCC, Pune metro and Gujarat water projects will be other key contributors. It expects debt to increase from the FY19 levels of Rs 13bn, to Rs 18-20bn, with working capital requirement of almost 25% of the incremental revenues in FY19. Outlook and valuation We are highly impressed with the scale and pace of execution by NCC, on the APTIDCO project. While land acquisition has delayed execution at one site, the overall progress on the project has been strong. We expect the same on other projects in the orderbook, leading to strong growth in FY19. We maintain BUY, with a price target of Rs 165. BUY (Maintain) CMP RS 96 TARGET RS 165 (+72%) COMPANY DATA O/S SHARES (MN) : 601 MARKET CAP (RSBN) : 58 MARKET CAP (USDBN) : 0.8 52 - WK HI/LO (RS) : 141/ 76 LIQUIDITY 3M (USDMN) : 23.8 PAR VALUE (RS) : 2 SHARE HOLDING PATTERN, % Mar 18 Dec 17 Sep 17 PROMOTERS : 18.1 19.6 19.6 FII / NRI : 17.7 19.9 20.8 FI / MF : 32.8 27.6 24.9 NON PRO : 13.8 14.9 14.6 PUBLIC & OTHERS : 17.6 18.0 20.3 KEY FINANCIALS Rs mn FY17 FY18 FY19E FY20E Net Sales 78,921 75,594 105,831 132,289 EBIDTA 6,852 8,549 10,583 13,229 Net Profit 2,607 3,615 4,552 6,175 EPS, Rs 4.1 4.8 7.6 10.3 PER, x 20.5 16.0 12.7 9.3 EV/EBIDTA, x 9.9 8.2 7.1 5.9 PBV, Rs 1.6 1.4 1.2 1.1 ROE, % 7.6 8.5 9.8 11.9 PRICE VS. SENSEX Source: Phillip Capital India Research PhillipCapital India values your support in the Asiamoney Brokers Poll 2018. We appreciate your vote. Vibhor Singhal (+ 9122 62464109) [email protected] Deepika Bhandari(+ 9122 62464138) [email protected] 80 100 120 140 160 180 200 Apr/16 Apr/17 Apr/18 NCC BSE Sensex
Transcript of INSTITUTIONAL EQUITY RESEARCH NCC Ltd (NJCC IN) Mass ...
INSTITUTIONAL EQUITY RESEARCH
Page | 1 | PHILLIPCAPITAL INDIA RESEARCH
NCC Ltd (NJCC IN)
Mass housing site visit in AP – Execution in Full Swing !
INDIA | INFRASTRUCTURE | Company Update
9 July 2018
Last week we organized a site visit for our clients, to a mass housing project in AP, being
developed by NCC. The site is part of the Prandhan Mantri Aawas Yojna (PMAY) project, awarded
by the Andhra Pradesh Township Infrastructure Development Corporation Ltd (APTIDCO). The
project involves construction of ~20,000 flats for EWS (Economically Weaker Section), at 8
locations in 15 months. We came back highly impressed with the scale and pace of execution on
the project and its overall progress. On other projects in the orderbook, the management
indicated few initial hiccups in execution on some projects – but remains confident of achieving its
guided topline (Rs 110bn) with margins of 10.5% in FY19. We maintain BUY.
Project/Site details The project, awarded by APTIDOC under PMAY, involves construction of 19,242 EWS Flats in
G+3 (Ground Level + 3 storeys) format at 8 Locations in the East Godavari District, in AP.
The project scope involves investigation, survey, planning, design, construction and handing
over of 19,242 EWS Flats with Monolithic concrete construction (Share wall technology)
including internal infrastructure facilities such as water supply, sanitary, and electrification.
The total project cost is Rs 11.64bn – and has to be completed in fifteen months (Oct-2018),
with a two year defect-liability period. Construction on the project started in Jul-2017.
The site at Rajahmundry involved construction of 4200 flats, in the Municipality area of
Rajamahendravaram in 3 locations.
The flats for these projects are being constructed using MIVAN technology - which involves
use of aluminium formwork, to erect the structure of a building, and then concrete is poured
from the top, into the formwork. It takes 4-5 days for the concrete to solidify, and the
structure be completed – post which, the formworks are dismantled and re-used for other
projects. These formworks can theoretically be used 30-40 times, over their life.
The company has invested Rs 800mn for these formworks, for this APTIDCO project - total of
Rs 2bn has been invested in these formworks, for different projects by the company.
The flats are being sold to the beneficiaries for Rs 700,000 each, with Rs 300,000 subsidy
from the government (Rs 150,000 each from the state and centre). The developer (NCC in
this case) is being paid at the rate of Rs 1600 per sqft construction cost.
Key takeaways from the site visit Execution is in full swing at all but one (Kakinada) of the 8 sites. Kakinada site has been
impacted by inability of the state govt in acquiring land for the project.
At the Rajahmundry site, we saw flats at various stages of construction. While few 'blocks' of
flats were already complete and ready to ‘move-in’, structures were being erected for other
blocks.Execution had just started at some blocks, with their foundations being prepared.
The completed flats were replete with all electrical and water fittings.
NCC has also been given the additional responsibility of constructing the infrastructure of
the colony – over the Rs 11.6bn project cost.
Payment for the project are being received timely – As on 6th July 2018, payments for
execution done upto May-2018 were already received by the company.
Management update on execution on other key projects
The management appeared confident of being able to achieve its guidance of Rs 110bn of
topline in FY19, with margins of 10.5%. It has internally targeted execution of Rs 10bn per
month, for the entire year, with second half expected to be stronger than first half.
The housing projects in AP, and projects in Amravati are expected to contribute ~35% to the
FY19 topline. NBCC, Pune metro and Gujarat water projects will be other key contributors.
It expects debt to increase from the FY19 levels of Rs 13bn, to Rs 18-20bn, with working
capital requirement of almost 25% of the incremental revenues in FY19.
Outlook and valuation We are highly impressed with the scale and pace of execution by NCC, on the APTIDCO project. While land acquisition has delayed execution at one site, the overall progress on the project has been strong. We expect the same on other projects in the orderbook, leading to strong growth in FY19. We maintain BUY, with a price target of Rs 165.
BUY (Maintain) CMP RS 96 TARGET RS 165 (+72%) COMPANY DATA
O/S SHARES (MN) : 601
MARKET CAP (RSBN) : 58
MARKET CAP (USDBN) : 0.8
52 - WK HI/LO (RS) : 141/ 76
LIQUIDITY 3M (USDMN) : 23.8
PAR VALUE (RS) : 2
SHARE HOLDING PATTERN, %
Mar 18 Dec 17 Sep 17
PROMOTERS : 18.1 19.6 19.6
FII / NRI : 17.7 19.9 20.8
FI / MF : 32.8 27.6 24.9
NON PRO : 13.8 14.9 14.6
PUBLIC & OTHERS : 17.6 18.0 20.3
KEY FINANCIALS
Rs mn FY17 FY18 FY19E FY20E
Net Sales 78,921 75,594 105,831 132,289
EBIDTA 6,852 8,549 10,583 13,229
Net Profit 2,607 3,615 4,552 6,175
EPS, Rs 4.1 4.8 7.6 10.3
PER, x 20.5 16.0 12.7 9.3
EV/EBIDTA, x 9.9 8.2 7.1 5.9
PBV, Rs 1.6 1.4 1.2 1.1
ROE, % 7.6 8.5 9.8 11.9
PRICE VS. SENSEX
Source: Phillip Capital India Research
PhillipCapital India values your support in the Asiamoney Brokers Poll 2018.
We appreciate your vote.
Vibhor Singhal (+ 9122 62464109) [email protected] Deepika Bhandari(+ 9122 62464138) [email protected]
80
100
120
140
160
180
200
Apr/16 Apr/17 Apr/18
NCC BSE Sensex
Page | 2 | PHILLIPCAPITAL INDIA RESEARCH
NCC LTD COMPANY UPDATE
Site details of the APTIDCO project
Site name Area (acres) No of blocks No of units Handover date Project Cost Financial Progress Expected CoD
Peddapuram 31.8 54.0 1,728.0 18-07-2017 995.4 79% 09-10-2018 Pithapuram 10.7 27.0 864.0 06-09-2017 506.2 68% 31-10-2018 Samalkot - J 5.5 13.0 416.0 10-08-2017 637.9 65% 09-10-2018 Samalkot - U 12.4 20.0 640.0 19-07-2017
31-10-2018
Kakinada 39.7 98.0 3,136.0 18-10-2017 2,839.9 5% 31-03-2019 Kakinada*
46.0 1,472.0 Awaited
NA
Ramachandrapuram 18.2 34.0 1,056.0 18-07-2017 608.5 92% 31-10-2018 Mandapeta 66.3 127.0 4,064.0 18-07-2017 2,501.0 58% 31-12-2018 Rajamahendravaram - B 27.4 79.0 2,528.0 18-07-2017 2,480.8 55% 31-03-2019 Rajamahendravaram - T 7.6 28.0 896.0 18-07-2017
31-03-2019
Amalapuram 32.8 51.0 1,632.0 18-07-2017 1,068.1 61% 31-10-2018
Total 252.2 577.0 18,432.0
11,637.8 49% Source: Company, Phillip Capital India Research (* Land for these blocks not yet handed over by the state govt)
Location of various sites of APTIDCO project Layout of the site at Rajahmundry
Source: Company, Phillip Capital India Research
Photographs of the Rajahmundry site, taken at various times
Source: Company, Phillip Capital India Research
Page | 3 | PHILLIPCAPITAL INDIA RESEARCH
NCC LTD COMPANY UPDATE
Structure erected out of aluminium formworks Aluminium formworks used in MIVAN technology
Source: Company, Phillip Capital India Research
Interior of a room created by formwork View of the passage of the block being constructed
Source: Company, Phillip Capital India Research
Blocks of flat under various stages of construction
Source: Company, Phillip Capital India Research
Page | 4 | PHILLIPCAPITAL INDIA RESEARCH
NCC LTD COMPANY UPDATE
Blocks of flat under various stages of construction
Source: Company, Phillip Capital India Research
View of a block of flats complete, and ready to move-in
Interiors of a block of flats complete
Source: Company, Phillip Capital India Research
Page | 5 | PHILLIPCAPITAL INDIA RESEARCH
NCC LTD COMPANY UPDATE
Financials (Standalone)
Income Statement Y/E Mar, Rs mn FY17 FY18 FY19E FY20E
Net sales 78,921 75,594 105,831 132,289
Growth, % -5 -4 40 25
Total income 78,921 75,594 105,831 132,289
Employee expenses -3,316 -3,641 -5,098 -6,372
Other Operating expenses -37,397 -35,638 -41,197 -51,496
EBITDA (Core) 6,852 8,549 10,583 13,229
Growth, % (7.1) 24.8 23.8 25.0
Margin, % 8.7 11.3 10.0 10.0
Depreciation -1,121 -1,175 -1,346 -1,506
EBIT 5,731 7,375 9,237 11,723
Growth, % (8.7) 28.7 25.3 26.9
Margin, % 7.3 9.8 8.7 8.9
Interest paid -3,957 -3,789 -3,920 -4,112
Other Non-Operating Income 1,401 1,158 1,185 1,210
Pre-tax profit 2,671 3,678 6,502 8,821
Tax provided -417 -809 -1,951 -2,646
Profit after tax 2,255 2,869 4,552 6,175
Others (Minorities, Associates) 0 0 0 0
Net Profit 2,255 2,869 4,552 6,175
Growth, % (6.1) 27.2 58.7 35.7
Net Profit (adjusted) 2,607 3,615 4,552 6,175
Unadj. shares (m) 556 601 601 601
Wtdavg shares (m) 556 601 601 601
Orderbook Y/E Mar, Rs bn FY17 FY18 FY19E FY20E
Orderbook 181 325 359 377
Growth YoY (%) 2% 80% 11% 5%
Book-to-Sales (x) 2.3 4.3 3.4 2.8
Order Inflow 83 220 140 150
Balance Sheet Y/E Mar, Rs mn FY17 FY18 FY19E FY20E
Cash & bank 1,095 659 441 508
Debtors 37,035 46,889 57,990 70,675
Inventory 15,258 16,956 21,311 25,371
Loans & advances 5,861 7,531 10,148 12,685
Total current assets 70,098 86,667 104,522 123,872
Investments 10,287 10,237 9,237 8,237
Gross fixed assets 13,092 15,839 17,839 19,839
Less: Depreciation -7,170 -8,345 -9,691 -11,197
Add: Capital WIP 494 816 816 816
Net fixed assets 6,416 8,310 8,964 9,458
Total assets 89,158 108,006 125,515 144,358
Current liabilities 38,938 52,560 60,920 71,792
Total current liabilities 38,938 52,560 60,920 71,792
Non-current liabilities 15,798 13,029 18,329 20,829
Total liabilities 54,736 65,589 79,250 92,621
Paid-up capital 1,112 1,201 1,201 1,201
Reserves & surplus 33,311 41,215 45,064 50,536
Shareholders’ equity 34,423 42,416 46,265 51,738
Total equity & liabilities 89,158 108,006 125,515 144,358
Source: Company, PhillipCapital India Research Estimates
Cash Flow Y/E Mar, Rs mn FY17 FY18 FY19E FY20E
Pre-tax profit 2,671 3,678 6,502 8,821
Depreciation 1,121 1,175 1,346 1,506
Chg in working capital 1,083 -3,383 -9,713 -8,410
Total tax paid -456 -1,274 -1,951 -2,646
Cash flow from operating activities 4,418 196 -3,815 -729
Capital expenditure -1,302 -3,009 -2,000 -2,000
Chg in investments -717 50 1,000 1,000
Cash flow from investing activities -2,018 -2,959 -1,000 -1,000
Free cash flow 2,400 -2,763 -4,815 -1,729
Equity raised/(repaid) 0 5,280 0 0
Debt raised/(repaid) -3,062 -2,737 5,300 2,500
Cash flow from financing activities -3,464 2,328 4,597 1,797
Net chg in cash -1,064 -436 -218 68
Valuation Ratios FY17 FY18 FY19E FY20E
Per Share data
EPS (INR) 4.1 4.8 7.6 10.3
Growth, % (6.1) 17.7 58.7 35.7
Book NAV/share (INR) 61.9 70.6 77.0 86.1
FDEPS (INR) 4.7 6.0 7.6 10.3
CEPS (INR) 7.6 9.7 9.8 12.8
CFPS (INR) 5.4 (1.6) (8.3) (3.2)
Return ratios
Return on assets (%) 5.2 5.3 5.9 6.4
Return on equity (%) 7.6 8.5 9.8 11.9
Return on capital employed (%) 9.3 9.9 11.6 12.6
Turnover ratios
Asset turnover (x) 2.1 1.9 2.3 2.3
Sales/Total assets (x) 0.9 0.8 0.9 1.0
Sales/Net FA (x) 12.4 10.3 12.3 14.4
Working capital/Sales (x) 0.4 0.4 0.4 0.4
Receivable days 171.3 226.4 200.0 195.0
Inventory days 70.6 81.9 73.5 70.0
Payable days 195.5 283.8 231.8 218.7
Working capital days 139.0 161.5 148.9 142.3
Liquidity ratios
Current ratio (x) 1.8 1.6 1.7 1.7
Quick ratio (x) 1.4 1.3 1.4 1.4
Interest cover (x) 1.4 1.9 2.4 2.9
Total debt/Equity (x) 0.5 0.3 0.4 0.4
Net debt/Equity (x) 0.4 0.3 0.4 0.4
Valuation
PER (x) 20.5 16.0 12.7 9.3
PEG (x) - y-o-y growth 8.2 0.6 0.5 0.3
Price/Book (x) 1.6 1.4 1.2 1.1
EV/Net sales (x) 0.9 0.9 0.7 0.6
EV/EBITDA (x) 9.9 8.2 7.1 5.9
EV/EBIT (x) 11.9 9.5 8.2 6.7
Page | 6 | PHILLIPCAPITAL INDIA RESEARCH
NCC LTD COMPANY UPDATE
Stock Price, Price Target and Rating History
Rating Methodology We rate stock on absolute return basis. Our target price for the stocks has an investment horizon of one year.
Rating Criteria Definition
BUY >= +15% Target price is equal to or more than 15% of current market price
NEUTRAL -15% > to < +15% Target price is less than +15% but more than -15%
SELL <= -15% Target price is less than or equal to -15%.
B (TP 105)
B (TP 105)
B (TP 105)
B (TP 100) B (TP 100) B (TP 125)
B (TP 115) B (TP 110) B (TP 115) B (TP 110)
B (TP 125)
B (TP 160)
B (TP 165)
0
20
40
60
80
100
120
140
160
J-15 A-15 O-15 D-15 J-16 F-16 A-16 J-16 J-16 A-16 O-16 D-16 J-17 M-17 A-17 J-17 J-17 S-17 O-17 N-17 J-18 M-18 A-18 J-18
Page | 7 | PHILLIPCAPITAL INDIA RESEARCH
NCC LTD COMPANY UPDATE
MANAGEMENT
Vineet Bhatnagar (Managing Director)
Kinshuk Bharti Tiwari (Head – Institutional Equity)
Jignesh Shah (Head – Equity Derivatives)
REGIONAL MEMBER COMPANIES
INDIA
PhillipCapital (India) Private Limited
www.phillipcapital.in
SINGAPORE
Phillip Securities Pte Ltd
www.phillip.com.sg
JAPAN
Phillip Securities Japan, Ltd
www.phillip.co.jp
THAILAND
Phillip Securities (Thailand) Public Co. Ltd.
www.phillip.co.th
UNITED STATES
Phillip Futures Inc.
MALAYSIA
Phillip Capital Management SdnBhd
www.poems.com.my
INDONESIA
PT Phillip Securities Indonesia
www.phillip.co.id
FRANCE
King &Shaxson Capital Ltd.
www.kingandshaxson.com
AUSTRALIA
PhillipCapital Australia
www.phillipcapital.com.au
HONG KONG
Phillip Securities (HK) Ltd
www.phillip.com.hk
CHINA
Phillip Financial Advisory (Shanghai) Co. Ltd.
www.phillip.com.cn
UNITED KINGDOM
King &Shaxson Ltd.
www.kingandshaxson.com
SRI LANKA
Asha Phillip Securities Limited
www.ashaphillip.net/home.htm
RESEARCH
Automobiles
Dhawal Doshi
Nitesh Sharma, CFA
Agro Chemicals
VarunVijayan
Banking, NBFCs
Manish Agarwalla
Pradeep Agrawal, Sujal Kumar
Consumer
Naveen Kulkarni, CFA, FRM
PreeyamTolia, Vishal Gutka
Cement
Vaibhav Agarwal
Engineering, Capital Goods
Jonas Bhutta
Vikram Rawat
Economics
Anjali Verma
RaagHaria
IT Services
Vibhor Singhal
Shyamal Dhruve
Infrastructure
Vibhor Singhal
Deepika Bhandari
Logistics, Transportation & Midcap
Vikram Suryavanshi
Media
Naveen Kulkarni, CFA, FRM
Vishal Gutka
Metals
Dhawal Doshi
Vipul Agrawal
Midcaps
Deepak Agarwal
Akshay Mokashe
Pharma & Specialty Chem
Surya Patra
Mehul Sheth, Rishita Raja
Retail & Real Estate
Vishal Gutka
DhavalSomaiya
Strategy
Naveen Kulkarni, CFA, FRM
NeerajChadawar
Telecom
Naveen Kulkarni, CFA, FRM
Technicals
Subodh Gupta, CMT
Production Manager
Ganesh Deorukhkar
Editor
Roshan Sony
Sr. Manager – Equities Support
Rosie Ferns
SALES & DISTRIBUTION
Kishor Binwal
Bhavin Shah
Ashka Gulati
ArchanVyas
Sales Trader
Dilesh Doshi
Execution
Mayur Shah
CORPORATE COMMUNICATIONS
Zarine Damania
Page | 8 | PHILLIPCAPITAL INDIA RESEARCH
NCC LTD COMPANY UPDATE
Disclosures and Disclaimers PhillipCapital (India) Pvt. Ltd. has three independent equity research groups: Institutional Equities, Institutional Equity Derivatives, and Private Client Group. This report has been prepared by Institutional Equities Group. The views and opinions expressed in this document may, may not match, or may be contrary at times with the views, estimates, rating, and target price of the other equity research groups of PhillipCapital (India) Pvt. Ltd.
This report is issued by PhillipCapital (India) Pvt. Ltd., which is regulated by the SEBI. PhillipCapital (India) Pvt. Ltd. is a subsidiary of Phillip (Mauritius) Pvt. Ltd. References to "PCIPL" in this report shall mean PhillipCapital (India) Pvt. Ltd unless otherwise stated. This report is prepared and distributed by PCIPL for information purposes only, and neither the information contained herein, nor any opinion expressed should be construed or deemed to be construed as solicitation or as offering advice for the purposes of the purchase or sale of any security, investment, or derivatives. The information and opinions contained in the report were considered by PCIPL to be valid when published. The report also contains information provided to PCIPL by third parties. The source of such information will usually be disclosed in the report. Whilst PCIPL has taken all reasonable steps to ensure that this information is correct, PCIPL does not offer any warranty as to the accuracy or completeness of such information. Any person placing reliance on the report to undertake trading does so entirely at his or her own risk and PCIPL does not accept any liability as a result. Securities and Derivatives markets may be subject to rapid and unexpected price movements and past performance is not necessarily an indication of future performance.
This report does not regard the specific investment objectives, financial situation, and the particular needs of any specific person who may receive this report. Investors must undertake independent analysis with their own legal, tax, and financial advisors and reach their own conclusions regarding the appropriateness of investing in any securities or investment strategies discussed or recommended in this report and should understand that statements regarding future prospects may not be realised. Under no circumstances can it be used or considered as an offer to sell or as a solicitation of any offer to buy or sell the securities mentioned within it. The information contained in the research reports may have been taken from trade and statistical services and other sources, which PCIL believe is reliable. PhillipCapital (India) Pvt. Ltd. or any of its group/associate/affiliate companies do not guarantee that such information is accurate or complete and it should not be relied upon as such. Any opinions expressed reflect judgments at this date and are subject to change without notice.
Important: These disclosures and disclaimers must be read in conjunction with the research report of which it forms part. Receipt and use of the research report is subject to all aspects of these disclosures and disclaimers. Additional information about the issuers and securities discussed in this research report is available on request.
Certifications: The research analyst(s) who prepared this research report hereby certifies that the views expressed in this research report accurately reflect the research analyst’s personal views about all of the subject issuers and/or securities, that the analyst(s) have no known conflict of interest and no part of the research analyst’s compensation was, is, or will be, directly or indirectly, related to the specific views or recommendations contained in this research report.
Additional Disclosures of Interest: Unless specifically mentioned in Point No. 9 below: 1. The Research Analyst(s), PCIL, or its associates or relatives of the Research Analyst does not have any financial interest in the company(ies) covered in
this report. 2. The Research Analyst, PCIL or its associates or relatives of the Research Analyst affiliates collectively do not hold more than 1% of the securities of the
company (ies)covered in this report as of the end of the month immediately preceding the distribution of the research report. 3. The Research Analyst, his/her associate, his/her relative, and PCIL, do not have any other material conflict of interest at the time of publication of this
research report. 4. The Research Analyst, PCIL, and its associates have not received compensation for investment banking or merchant banking or brokerage services or for
any other products or services from the company(ies) covered in this report, in the past twelve months. 5. The Research Analyst, PCIL or its associates have not managed or co-managed in the previous twelve months, a private or public offering of securities for
the company (ies) covered in this report. 6. PCIL or its associates have not received compensation or other benefits from the company(ies) covered in this report or from any third party, in
connection with the research report. 7. The Research Analyst has not served as an Officer, Director, or employee of the company (ies) covered in the Research report. 8. The Research Analyst and PCIL has not been engaged in market making activity for the company(ies) covered in the Research report. 9. Details of PCIL, Research Analyst and its associates pertaining to the companies covered in the Research report:
Sr. no. Particulars Yes/No
1 Whether compensation has been received from the company(ies) covered in the Research report in the past 12 months for investment banking transaction by PCIL
No
2 Whether Research Analyst, PCIL or its associates or relatives of the Research Analyst affiliates collectively hold more than 1% of thecompany(ies) covered in the Research report
No
3 Whether compensation has been received by PCIL or its associates from the company(ies) covered in the Research report No
4 PCIL or its affiliates have managed or co-managed in the previous twelve months a private or public offering of securities for the company(ies) covered in the Research report
No
5 Research Analyst, his associate, PCIL or its associates have received compensation for investment banking or merchant banking or brokerage services or for any other products or services from the company(ies) covered in the Research report, in the last twelve months
No
Independence: PhillipCapital (India) Pvt. Ltd. has not had an investment banking relationship with, and has not received any compensation for investment banking services from, the subject issuers in the past twelve (12) months, and PhillipCapital (India) Pvt. Ltd does not anticipate receiving or intend to seek compensation for investment banking services from the subject issuers in the next three (3) months. PhillipCapital (India) Pvt. Ltd is not a market maker in the securities mentioned in this research report, although it, or its affiliates/employees, may have positions in, purchase or sell, or be materially interested in any of the securities covered in the report.
Suitability and Risks: This research report is for informational purposes only and is not tailored to the specific investment objectives, financial situation or particular requirements of any individual recipient hereof. Certain securities may give rise to substantial risks and may not be suitable for certain investors. Each investor must make its own determination as to the appropriateness of any securities referred to in this research report based upon the legal, tax and accounting considerations applicable to such investor and its own investment objectives or strategy, its financial situation and its investing experience. The value of any security may be positively or adversely affected by changes in foreign exchange or interest rates, as well as by other financial, economic, or political factors. Past performance is not necessarily indicative of future performance or results.
Page | 9 | PHILLIPCAPITAL INDIA RESEARCH
NCC LTD COMPANY UPDATE
Sources, Completeness and Accuracy: The material herein is based upon information obtained from sources that PCIPL and the research analyst believe to be reliable, but neither PCIPL nor the research analyst represents or guarantees that the information contained herein is accurate or complete and it should not be relied upon as such. Opinions expressed herein are current opinions as of the date appearing on this material, and are subject to change without notice. Furthermore, PCIPL is under no obligation to update or keep the information current.Without limiting any of the foregoing, in no event shall PCIL, any of its affiliates/employees or any third party involved in, or related to computing or compiling the information have any liability for any damages of any kind including but not limited to any direct or consequential loss or damage, however arising, from the use of this document.
Copyright: The copyright in this research report belongs exclusively to PCIPL. All rights are reserved. Any unauthorised use or disclosure is prohibited. No reprinting or reproduction, in whole or in part, is permitted without the PCIPL’s prior consent, except that a recipient may reprint it for internal circulation only and only if it is reprinted in its entirety.
Caution: Risk of loss in trading/investment can be substantial and even more than the amount / margin given by you. Investment in securities market are subject to market risks, you are requested to read all the related documents carefully before investing. You should carefully consider whether trading/investment is appropriate for you in light of your experience, objectives, financial resources and other relevant circumstances. PhillipCapital and any of its employees, directors, associates, group entities, or affiliates shall not be liable for losses, if any, incurred by you. You are further cautioned that trading/investments in financial markets are subject to market risks and are advised to seek independent third party trading/investment advice outside PhillipCapital/group/associates/affiliates/directors/employees before and during your trading/investment. There is no guarantee/assurance as to returns or profits or capital protection or appreciation. PhillipCapital and any of its employees, directors, associates, and/or employees, directors, associates of PhillipCapital’s group entities or affiliates is not inducing you for trading/investing in the financial market(s). Trading/Investment decision is your sole responsibility. You must also read the Risk Disclosure Document and Do’s and Don’ts before investing.
Kindly note that past performance is not necessarily a guide to future performance.
For Detailed Disclaimer: Please visit our website www.phillipcapital.in
For U.S. persons only: This research report is a product of PhillipCapital (India) Pvt Ltd., which is the employer of the research analyst(s) who has prepared the research report. The research analyst(s) preparing the research report is/are resident outside the United States (U.S.) and are not associated persons of any U.S.-regulated broker-dealer and therefore the analyst(s) is/are not subject to supervision by a U.S. broker-dealer, and is/are not required to satisfy the regulatory licensing requirements of FINRA or required to otherwise comply with U.S. rules or regulations regarding, among other things, communications with a subject company, public appearances, and trading securities held by a research analyst account.
This report is intended for distribution by PhillipCapital (India) Pvt Ltd. only to "Major Institutional Investors" as defined by Rule 15a-6(b)(4) of the U.S. Securities and Exchange Act, 1934 (the Exchange Act) and interpretations thereof by the U.S. Securities and Exchange Commission (SEC) in reliance on Rule 15a 6(a)(2). If the recipient of this report is not a Major Institutional Investor as specified above, then it should not act upon this report and return the same to the sender. Further, this report may not be copied, duplicated, and/or transmitted onward to any U.S. person, which is not a Major Institutional Investor. In reliance on the exemption from registration provided by Rule 15a-6 of the Exchange Act and interpretations thereof by the SEC in order to conduct certain
business with Major Institutional Investors, PhillipCapital (India) Pvt Ltd. has entered into an agreement with a U.S. registered broker-dealer, Decker & Co, LLC.Transactions in securities discussed in this research report should be effected through Decker & Co, LLC or another U.S. registered broker dealer.
If Distribution is to Australian Investors This report is produced by PhillipCapital (India) Pvt Ltd and is being distributed in Australia by Phillip Capital Limited (Australian Financial Services Licence No. 246827).
This report contains general securities advice and does not take into account your personal objectives, situation and needs. Please read the Disclosures and Disclaimers set out above. By receiving or reading this report, you agree to be bound by the terms and limitations set out above. Any failure to comply with
these terms and limitations may constitute a violation of law. This report has been provided to you for personal use only and shall not be reproduced, distributed or published by you in whole or in part, for any purpose. If you have received this report by mistake, please delete or destroy it, and notify the sender immediately.
PhillipCapital (India) Pvt. Ltd. Registered office: No. 1, 18th Floor, Urmi Estate, 95 Ganpatrao Kadam Marg, Lower Parel West, Mumbai 400013
