He added that the company has delivered on large projects and maintains a strong order pipeline, and that he would not sell the stock based on recent developments alone.
NCC shares fell sharply on February 19, after the company disclosed that it had received a debarment order from the National Highways Authority of India (NHAI). In a statement on Wednesday, NCC said that under the order, both the company and its step-down subsidiary, OB Infrastructure, have been barred from participating in any tenders or bids issued by NHAI for a period of two years, effective February 17, 2026.Also Read | HAL, Mazagon Dock, GRSE in focus as defence orders, aircraft demand pick up: PL Capital
He advised investors to hold quality names in the sector, including Larsen & Toubro (L&T), calling it a “must own stock.” He confirmed that he and his clients remain invested.
On Netweb, Mehta said the company is positioned in the high-performance computing segment linked to AI demand. However, he said valuations have limited his participation.
“Another P/E multiple kind of scared us, so we did not invest in it, and we just kept on looking at it,” he said.
He noted that the limited listed options in India for direct AI exposure have led to higher valuations. According to him, buying high P/E stocks may deliver short-term gains but not always strong long-term returns.
“In my experience, buying such high P/E stocks, while they do well in the short term, they give you an 8–10% return, but over a three to five-year period, the returns diminish significantly because you’re a bit late in the game.”Also Read | Prefer retail NBFCs over gold lenders; avoid BPOs, mid-tier IT firms on watchlist: Deven Choksey
Mehta prefers to wait for either a deeper correction or stronger earnings that make valuations more reasonable before considering an investment.
On Cohance Lifesciences, formerly known as Suven Lifesciences Ltd, Mehta said the opportunity to exit has likely passed.
Despite weak earnings over the last two to three quarters, he remains positive on the contract development and manufacturing organisation (CDMO) segment.
“I remain very positive on the CDMO space… turnaround could be there next two, three quarters down the line, because the inquiries have doubled for these companies.”
He added that there is a strong case for Indian CDMO firms to benefit from global outsourcing trends and advised investors to stay invested and wait for a recovery.
For the full interview, watch the accompanying video
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