⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
NIACL - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 2.9
| Stock Code | NIACL | Market Cap | 22,181 Cr. | Current Price | 134 ₹ | High / Low | 215 ₹ |
| Stock P/E | 18.9 | Book Value | 169 ₹ | Dividend Yield | 1.34 % | ROCE | 3.72 % |
| ROE | 3.54 % | Face Value | 5.00 ₹ | DMA 50 | 147 ₹ | DMA 200 | 167 ₹ |
| Chg in FII Hold | -0.01 % | Chg in DII Hold | -0.03 % | PAT Qtr | 372 Cr. | PAT Prev Qtr | 63.2 Cr. |
| RSI | 35.9 | MACD | -4.44 | Volume | 7,66,126 | Avg Vol 1Wk | 4,90,178 |
| Low price | 131 ₹ | High price | 215 ₹ | PEG Ratio | 0.24 | Debt to equity | 0.00 |
| 52w Index | 4.58 % | Qtr Profit Var | 5.13 % | EPS | 7.11 ₹ | Industry PE | 33.4 |
📊 Financials
- Revenue Growth: Volatile, PAT improved to 372 Cr from 63.2 Cr
- Profit Margins: EPS at 7.11 ₹, but margins remain thin
- Debt Ratios: Debt-to-equity at 0.00, strong balance sheet
- Cash Flows: Moderate, supported by recent profit recovery
- Return Metrics: ROCE 3.72% and ROE 3.54% show weak efficiency
💹 Valuation
- P/E Ratio: 18.9, lower than industry average (33.4), suggesting undervaluation
- P/B Ratio: ~0.79 (Current Price / Book Value), attractive
- PEG Ratio: 0.24, indicating undervaluation relative to growth
- Intrinsic Value: Appears undervalued compared to peers
🏢 Business Model & Health
- Business Model: Insurance services, cyclical and dependent on claims environment
- Competitive Advantage: Established brand with government backing
- Overall Health: Financially stable but low efficiency and profitability
🎯 Entry Zone Recommendation
- Entry Zone: Attractive near 130–140 ₹ levels (close to support)
- Long-Term Holding: Suitable for conservative investors; dividend yield (1.34%) adds stability
✅ Positive
- Strong quarterly profit recovery (372 Cr vs 63.2 Cr)
- Debt-free balance sheet
- Valuation metrics (P/B, PEG) suggest undervaluation
⚠️ Limitation
- ROCE and ROE remain weak (below 4%)
- Stock trading below DMA 50 and DMA 200, showing bearish trend
- Thin profit margins despite recent recovery
📉 Company Negative News
- FII holdings decreased (-0.01%) and DII holdings decreased (-0.03%)
- Technical indicators (RSI 35.9, MACD -4.44) suggest weak momentum
📈 Company Positive News
- Quarterly profit recovery shows operational improvement
- Dividend yield (1.34%) provides investor returns
🏭 Industry
- Insurance industry P/E: 33.4, higher than NIACL’s valuation
- Sector remains competitive, with demand tied to economic cycles
🔎 Conclusion
- NIACL is undervalued compared to industry peers but has weak efficiency metrics
- Entry near 130–140 ₹ offers value for conservative investors
- Best suited for long-term holding with modest dividend returns, but growth prospects remain limited