⚠ 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.
NSLNISP - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 2.4
| Stock Code | NSLNISP | Market Cap | 12,100 Cr. | Current Price | 41.2 ₹ | High / Low | 49.6 ₹ |
| Book Value | 44.4 ₹ | Dividend Yield | 0.00 % | ROCE | -13.0 % | ROE | -16.6 % |
| Face Value | 10.0 ₹ | DMA 50 | 42.2 ₹ | DMA 200 | 42.1 ₹ | Chg in FII Hold | -0.32 % |
| Chg in DII Hold | 0.33 % | PAT Qtr | -115 Cr. | PAT Prev Qtr | 25.6 Cr. | RSI | 46.9 |
| MACD | -0.14 | Volume | 28,78,628 | Avg Vol 1Wk | 46,03,466 | Low price | 28.4 ₹ |
| High price | 49.6 ₹ | Debt to equity | 0.41 | 52w Index | 60.5 % | Qtr Profit Var | 80.7 % |
| EPS | -4.51 ₹ | Industry PE | 20.7 |
📊 Core Financials
- Revenue & Profitability: Quarterly PAT fell sharply to -115 Cr. from 25.6 Cr., showing significant losses. EPS at -4.51 ₹ reflects negative earnings.
- Margins: ROCE (-13.0%) and ROE (-16.6%) are negative, indicating poor efficiency and profitability.
- Debt: Debt-to-equity ratio of 0.41 suggests moderate leverage, manageable but concerning given losses.
- Cash Flow: Dividend yield of 0.00% shows no shareholder payout, reflecting weak cash generation.
💹 Valuation Indicators
- P/E Ratio: Not applicable due to negative earnings.
- P/B Ratio: Current Price (41.2 ₹) / Book Value (44.4 ₹) ≈ 0.93 → Trading below book value, indicating undervaluation but justified by weak fundamentals.
- PEG Ratio: Not meaningful due to losses.
- Intrinsic Value: Current price reflects market skepticism; upside depends on turnaround in profitability.
🏭 Business Model & Competitive Advantage
- NSL NISP operates in steel and allied industries, a cyclical sector heavily dependent on demand and commodity prices.
- Currently lacks competitive advantage due to sustained losses and weak return metrics.
- Moderate debt levels provide some resilience, but profitability challenges remain critical.
📈 Entry Zone & Long-Term Guidance
- Entry Zone: Risk-tolerant investors may consider accumulation between 30 ₹ – 35 ₹, closer to support levels.
- Long-Term Holding: High-risk investment; only suitable if turnaround strategies materialize. Conservative investors should avoid until profitability stabilizes.
✅ Positive
- Stock trades below book value (P/B ≈ 0.93).
- DII holding increased by 0.33%, showing some domestic institutional support.
- Moderate debt-to-equity ratio (0.41) compared to industry peers.
⚠️ Limitation
- Negative ROCE (-13.0%) and ROE (-16.6%) highlight poor efficiency.
- EPS at -4.51 ₹ reflects losses.
- No dividend yield, limiting shareholder returns.
📉 Company Negative News
- Quarterly PAT dropped to -115 Cr. from 25.6 Cr.
- FII holding decreased by 0.32%, showing reduced foreign investor confidence.
📈 Company Positive News
- DII holding increased by 0.33%, reflecting some domestic institutional support.
- Stock trading below book value may attract value investors if turnaround occurs.
🌐 Industry
- Steel sector is cyclical, influenced by global demand, commodity prices, and infrastructure growth.
- Industry PE at 20.7 highlights NSL NISP’s weak positioning due to negative earnings.
🔎 Conclusion
NSL NISP is currently in a weak financial position with negative profitability, poor return ratios, and no dividend yield. While trading below book value may attract speculative interest, the stock remains high-risk. Investors should only consider entry around 30–35 ₹ if willing to tolerate volatility, with long-term holding dependent on a successful turnaround in operations.
I can also map out technical support and resistance levels using RSI, MACD, and DMA data to complement this fundamental view if you'd like.