CONSTRUCTION ESTIMATING NEWS (update by every month)
Nagarjuna Construction Company rises sharply on interest cost savings hopes
Nagarjuna Construction Company is seen as one of the key beneficiaries of the central bank's repo rate cut on Tuesday, rising as much as 10.60 percent, as it is expected to have major savings on interest cost.
Analysts said that interest costs form 70 percent of operating profits for NCC as of April-December in the last fiscal year.
"We have built in a 50 bps cut in the interest rate for F13 estimates and we estimate that every additional 50 bps cut would increase net profits by 17-20 percent," Morgan Stanley said in a report.