Stock Crash: Here is why this Rekha Jhunjhunwala portfolio share tanked on Friday

Shares of infrastructure company NCC Ltd. fell as much as 13% on Friday, February 7, after the company's management cut its growth guidance for the full financial year.

According to a note from JM Financial, the management has cut its financial year revenue growth guidance to 5% from 15% earlier, while the guidance on margins has been cut to 9.25% from 9.5% to 10% earlier.

NCC reported results after market hours on Thursday, where its net profit fell by 12.5% from last year, while its Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) declined by 12.6% from the year-ago period.

The company's margin also narrowed by 130 basis points to 8.3% from 9.6% earlier.

The management has guided for order inflows worth ₹20,000 crore for financial year 2025 and has received orders worth ₹14,000 crore so far in the year.

JM Financial said that it has cut its financial year 2025, 2026 and 2027 Earnings Per Share (EPS) estimates for NCC by 20%, 13% and 11% respectively to factor in lower execution and margins.

The brokerage has also cut its price target on NCC to ₹330 from ₹365 earlier.

Out of the 14 analysts that have coverage on NCC, 10 of them have a "buy" rating on the stock, one says "hold", while the other three have a "sell" rating.

Shares of NCC are currently trading 11.3% lower at ₹210.8. The stock has corrected 42% from its recent peak of over ₹360.