⚠ 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: 3.2
| Stock Code | NIACL | Market Cap | 24,504 Cr. | Current Price | 148 ₹ | High / Low | 215 ₹ |
| Stock P/E | 20.9 | Book Value | 0.00 ₹ | Dividend Yield | 1.21 % | ROCE | 3.72 % |
| ROE | 3.54 % | Face Value | 5.00 ₹ | DMA 50 | 157 ₹ | DMA 200 | 175 ₹ |
| Chg in FII Hold | -0.01 % | Chg in DII Hold | -0.03 % | PAT Qtr | 372 Cr. | PAT Prev Qtr | 63.2 Cr. |
| RSI | 44.5 | MACD | -3.16 | Volume | 5,98,517 | Avg Vol 1Wk | 3,56,210 |
| Low price | 135 ₹ | High price | 215 ₹ | PEG Ratio | 0.26 | 52w Index | 16.8 % |
| Qtr Profit Var | 5.13 % | EPS | 7.11 ₹ | Industry PE | 33.2 |
📊 Core Financials
- Revenue Growth: Quarterly PAT improved sharply from 63.2 Cr. to 372 Cr., showing recovery momentum.
- Profit Margins: EPS at 7.11 ₹, but margins remain modest relative to industry peers.
- Debt Ratios: Debt-to-equity not disclosed, but balance sheet appears light on leverage.
- Cash Flows: Likely positive given profitability rebound, though sustainability remains uncertain.
- Return Metrics: ROCE at 3.72% and ROE at 3.54% are weak, reflecting low efficiency in capital utilization.
💹 Valuation Indicators
- P/E Ratio: 20.9, below industry average (33.2), suggesting relative undervaluation.
- P/B Ratio: Not meaningful due to book value reported as 0.00 ₹.
- PEG Ratio: 0.26, indicates valuation is attractive relative to growth expectations.
- Intrinsic Value: Current price (148 ₹) trades below DMA 50 (157 ₹) and DMA 200 (175 ₹), signaling potential undervaluation.
🏢 Business Model & Competitive Advantage
- NIACL operates in general insurance, a regulated sector with steady demand.
- Competitive advantage lies in government backing and established brand presence.
- Challenges include low return ratios and high competition from private insurers with stronger efficiency metrics.
📈 Entry Zone & Long-Term Guidance
- Entry Zone: Attractive near 140–150 ₹, close to current levels and support zone.
- Long-Term Holding: Suitable for conservative investors seeking stability and modest dividend yield. Upside potential depends on sustained profitability improvement and efficiency gains.
Positive
- Quarterly PAT surged significantly, showing operational recovery.
- P/E ratio lower than industry average, indicating relative undervaluation.
- Dividend yield of 1.21% provides steady income.
Limitation
- Weak ROCE (3.72%) and ROE (3.54%) highlight poor capital efficiency.
- Book value reported as 0.00 ₹, limiting valuation clarity.
- Technical indicators weak (MACD negative, RSI mid-range).
Company Negative News
- Decline in both FII (-0.01%) and DII (-0.03%) holdings.
- Stock trading below DMA 50 and DMA 200, reflecting bearish sentiment.
Company Positive News
- Quarterly PAT improved sharply, signaling turnaround momentum.
- Volume activity remains healthy, showing investor interest.
Industry
- Insurance industry trades at a higher P/E (33.2), reflecting premium valuations compared to NIACL.
- Sector benefits from rising insurance penetration and regulatory support, but competition is intense.
Conclusion
- NIACL shows signs of recovery with improved profitability and undervaluation relative to peers.
- Weak return ratios and technical trends limit near-term upside.
- Best suited for conservative investors seeking modest dividends and stability, with potential upside if efficiency improves.
Would you like me to also create a dividend sustainability analysis in HTML to evaluate NIACL’s payout capacity against its earnings trend?