Ace investors Rakesh Jhunjhunwala's wife Rekha Jhunjhunwala increased her stake in NCC in the September quarter (Q2), the company's shareholding pattern on BSE showed.
Rekha Jhunjhunwala bought an additional 42.25 lakh shares of the midcap firm during the September quarter, increasing her stake from to 10.24 percent in Q2 from 9.55 percent in the June quarter. The stock rose as much as 2.1 percent to Rs 33.35 post on BSE post this.
She now holds 6,24,58,266 (6.24 crore) shares of the construction company as against 5,82,33,266 (5.8 crores) in the previous quarter. Meanwhile, Rakesh Jhunjhunwala maintained his stake in the firm at 1.9 percent, which translates to 1,16,00,000 (1.16 crore) shares in both June and September quarters.
Meanwhile, mutual funds decreased holding in the company to 12.22 percent in Q2 as compared to 13.01 percent in Q1. Foreign Portfolio Investors also reduced its holdings to 9.80 percent in this quarter versus 11.42 in the previous quarter.
The construction company's consolidated net profit slumped 76.5 percent YoY to Rs 17.01 crore in the June quarter. It's net sales also fell 44.7 percent YoY to Rs 1,297.60 crore in Q1. The company reported EBITDA of Rs 124.82 crore in Q1, a decline of 55.32 percent versus the year-ago period.
ICICI Direct, in a recent report, has given a hold rating to NCC Infratech with a target price of Rs 35.
The brokerage expects removal of lockdown and benign base to result in a relatively resilient quarter for NCC, notwithstanding extended monsoon and lower labour availability.
For the September quarter, the brokerage said that the topline is likely to de-grow 5 percent YoY to Rs 1645 crore and EBITDA margins are expected to contract 150 bps YoY to 12 percent due to negative operating leverage. The PAT is expected to decline 41.5 percent YoY to Rs 46.9 crore, it added.