NSLNISP - Fundamental Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Fundamental Rating: 2.1

Let’s break down NSLNISP (NSL Nagapatnam Integrated Steel Plant) — currently showing stress across financial and operational parameters. This one’s definitely in turnaround territory rather than value territory 🛠️📉

📘 Core Financial Picture

Profit Metrics

Quarterly loss improved from ₹-758 Cr. to ₹-473 Cr. (a 45% reduction), but still deeply in the red.

EPS, P/E, and Book Value are not disclosed — a sign of ongoing or past impairments.

ROE of -16.6% and ROCE of -13% — indicate shareholder value destruction and inefficient capital utilization.

Leverage & Liquidity

Debt-to-Equity: 0.45 — reasonably low, which is a bright spot amidst losses.

No dividend payout — logical given earnings profile.

💸 Valuation and Intrinsic Indicators

Indicator Value Implication

P/E Ratio Not Available Reflects negative earnings or undefined valuation

P/B Ratio Unclear Likely below 1 given stress

PEG Ratio NA No growth visibility in near term

Intrinsic Value Estimated at ₹30–₹34 Price hovering near intrinsic support zone

🟡 Uncertainty reigns here — valuation may be speculative or turnaround-driven.

⚙️ Business Model & Strategic Position

Engaged in integrated steel operations — cyclical industry heavily dependent on infrastructure and global commodity prices.

Likely impacted by high input costs, volatile steel pricing, and domestic competition.

Recent improvement in PAT suggests cost-cutting or operating leverage may be kicking in.

Slight rise in FII holdings (+0.07%) is encouraging, while DII trim (-0.13%) reveals cautious domestic sentiment.

📉 Technical Signals & Suggested Entry

RSI: 26.9 — oversold; technical bounce possible.

MACD: -0.65 — bearish momentum ongoing.

Trading below DMA 50 and 200, shows current weakness.

🎯 Entry Zone

For high-risk traders: ₹30–₹34

For long-term contrarians: Wait for signs of consistent profitability or strategic clarity

⏳ Long-Term Outlook

🔴 Negative ROE/ROCE and lack of earnings clarity raise red flags

🟡 Possible turnaround in future — improved PAT and cost efficiency suggest early signals

⚠️ High-risk, deep-value speculative play at best; prudent investors may prefer tracking quarters ahead before committing

If you’d like, I can map NSLNISP against stressed players like Jindal Stainless, Uttam Galva, or turnaround peers in steel to see how it compares on recovery and valuation 📊🔍

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