Rakesh Jhunjhunwala Portfolio; Dividend Paying Stock NCC May See 50% Upside, Says Anand Rathi

Rakesh Jhunjhunwala portfolio: NCC’s share price has been on the decline for about a year, owing to the impact of the Covid-19 outbreak. In reality, this Rakesh Jhunjhunwala stock has dropped 20% in the last year, providing no return to its stockholders.

However, Anand Rathi feels that the NCC share price has exited its consolidation period and is well positioned to rise to 95 per share in the long run. The current share price of NCC is about 62, implying that the brokerage expects a significant more than 50% upside in this Big Bull-backed scrip.

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Anand Rathi’s research paper highlights the fundamentals that might fuel NCC’s share price surge in the coming sessions “The important takeaway from NCC’s Q4 and FY22 results was the strong positive CFO-led substantial reduction in gross and net debt.

Execution skills were also prominent. These two factors contribute to positive development prospects. The two deliverables we were left wanting to improve were order additions and operating profitability. NCC’s full-year increases, however, were sufficient to recover FY22 revenues. The impact of input price pressure is significant, but it is not impossible for it to fade with time.”

According to the Anand Rathi study, positional investors may consider NCC shares “We keep our Buy recommendation due to the low valuation and positive outlook. However, due to input price pressure, we have reduced the target price to Rs95 (from Rs105 before).”

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Dividend Paying Stock

For the Financial Year 2021-22, NCC announced a 100 dividend per share on equity shares with a face value of ₹2 apiece.

“NCC Ltd has informed BSE that the Board of Directors of the Company has recommended Dividend of Rs. 2/- (100 percent) per share on the Equity Share of face value of Rs. 2/- each, for the Financial Year 2021-22, subject to the approval of the Members at the ensuing Annual General Meeting,” according to information available on the BSE website.

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Rakesh Jhunjhunwala shareholding in NCC

Rakesh Jhunjhunwala owns 6,67,33,266 shares in NCC, or 10.94% of the firm, according to the NCC ownership pattern for the January to March 2022 quarter.