⚠ 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.
NLCINDIA - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.4
| Stock Code | NLCINDIA | Market Cap | 34,097 Cr. | Current Price | 246 ₹ | High / Low | 292 ₹ |
| Stock P/E | 17.8 | Book Value | 131 ₹ | Dividend Yield | 1.46 % | ROCE | 9.02 % |
| ROE | 5.61 % | Face Value | 10.0 ₹ | DMA 50 | 253 ₹ | DMA 200 | 248 ₹ |
| Chg in FII Hold | -0.03 % | Chg in DII Hold | -0.15 % | PAT Qtr | 485 Cr. | PAT Prev Qtr | 368 Cr. |
| RSI | 44.9 | MACD | -0.14 | Volume | 17,41,530 | Avg Vol 1Wk | 21,74,646 |
| Low price | 186 ₹ | High price | 292 ₹ | PEG Ratio | 57.3 | Debt to equity | 0.47 |
| 52w Index | 56.4 % | Qtr Profit Var | 43.0 % | EPS | 13.8 ₹ | Industry PE | 25.6 |
📊 Core Financials
- Revenue & Profitability: Quarterly PAT improved from 368 Cr. to 485 Cr. (+43%), showing strong earnings momentum. EPS at 13.8 ₹ is modest relative to market price.
- Margins: ROCE at 9.02% and ROE at 5.61% are weak, reflecting limited efficiency and profitability.
- Debt: Debt-to-equity ratio of 0.47 indicates moderate leverage, manageable but worth monitoring.
- Cash Flow: Dividend yield of 1.46% provides steady shareholder returns, though not very high.
💹 Valuation Indicators
- P/E Ratio: 17.8 vs Industry PE of 25.6 → Slightly undervalued compared to peers.
- P/B Ratio: Current Price (246 ₹) / Book Value (131 ₹) ≈ 1.88 → Reasonable valuation.
- PEG Ratio: 57.3 → Extremely high, suggesting weak growth prospects relative to price.
- Intrinsic Value: Current price is close to fair value, offering limited upside unless profitability improves.
🏭 Business Model & Competitive Advantage
- NLC India operates in lignite mining and power generation, benefiting from government backing and long-term contracts.
- Stable business model with regulated tariffs ensures predictable cash flows.
- Moderate debt levels and strong asset base provide resilience, though efficiency metrics remain weak.
📈 Entry Zone & Long-Term Guidance
- Entry Zone: Attractive accumulation range between 210 ₹ – 225 ₹, closer to support levels and below DMA 200.
- Long-Term Holding: Suitable for conservative investors seeking dividend yield and stability. Growth prospects are limited, so staggered buying is recommended.
✅ Positive
- Quarterly PAT growth of 43% shows earnings momentum.
- Dividend yield of 1.46% provides steady income.
- P/E ratio below industry average, suggesting fair valuation.
⚠️ Limitation
- ROCE (9.02%) and ROE (5.61%) are weak compared to peers.
- PEG ratio of 57.3 signals poor growth prospects.
- Stock trading below DMA 50 and DMA 200 indicates weak momentum.
📉 Company Negative News
- FII holding decreased by 0.03%, showing reduced foreign investor confidence.
- DII holding decreased by 0.15%, reflecting lower domestic institutional support.
📈 Company Positive News
- Quarterly PAT rose from 368 Cr. to 485 Cr.
- Dividend yield of 1.46% supports shareholder value.
- Government backing ensures business stability.
🌐 Industry
- Power and mining sector benefits from India’s infrastructure push and rising electricity demand.
- Industry PE at 25.6 suggests NLC India trades at a discount, but efficiency metrics remain weak.
🔎 Conclusion
NLC India demonstrates stability with government backing, steady dividends, and fair valuation. However, weak return ratios and poor growth prospects limit upside potential. Investors may consider entering around 210–225 ₹ for long-term holding focused on dividend yield and stability rather than aggressive growth.
Would you like me to also highlight technical support and resistance levels using RSI, MACD, and DMA data to complement this fundamental analysis?