NSLNISP - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 19 Sept 25, 2:16 pm

Fundamental Rating: 3.2

📊 Core Financials Overview

Profitability

PAT rebounded to ₹25.6 Cr from a massive loss of ₹473 Cr — a 105% turnaround, but still fragile.

EPS: –₹6.15 — negative, indicating accumulated losses.

Return Metrics

ROCE: –13.0% and ROE: –16.6% — both negative, reflecting poor capital efficiency and shareholder value erosion.

Debt Profile

Debt-to-equity: 0.45 — moderate leverage, acceptable for a capital-intensive steel business.

Cash Flow: Not disclosed, but recent profitability suggests early signs of operational recovery.

💹 Valuation Indicators

Metric Value Commentary

P/E Ratio Not applicable Due to negative earnings, valuation via P/E is unreliable.

P/B Ratio ~1.01 Fairly valued — trading close to book value.

PEG Ratio Not available Lack of consistent earnings growth makes PEG irrelevant.

Intrinsic Value Likely near ₹35–₹40 Current price slightly above fair value — speculative premium.

🧠 Business Model & Competitive Advantage

NSLNISP (NMDC Steel Ltd.) is a newly demerged entity from NMDC, focused on steel manufacturing

Core Operations

Operates a 3 MTPA integrated steel plant at Nagarnar, Chhattisgarh

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Product mix includes low carbon steel, HSLA, dual-phase steel, and API-grade steel — used in shipbuilding, structural forming, and high-tensile applications

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Strategic Positioning

Backed by NMDC’s iron ore supply chain — ensures raw material security.

Government ownership (60.8% promoter holding) provides policy support and funding access

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Challenges

Low interest coverage ratio and negative ROE over the last 3 years

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Still in ramp-up phase — earnings are volatile and margins thin.

Its competitive edge lies in vertical integration, strategic location, and government backing, but it lacks operational maturity and consistent profitability.

📈 Technical & Sentiment Signals

RSI: 65.7 — nearing overbought zone, short-term caution.

MACD: Positive — bullish momentum.

Volume: Below weekly average — suggests fading speculative interest.

DMA 50/200: Price above both — confirms short-term uptrend.

🎯 Entry Zone & Long-Term Guidance

Suggested Entry Zone: ₹38–₹42 — near DMA levels and below RSI peak.

Long-Term View: NSLNISP is a speculative turnaround story with improving fundamentals and strategic backing. Suitable for long-term holding only for investors comfortable with volatility and willing to bet on operational ramp-up. No dividend yield currently, so returns depend entirely on capital appreciation.

You can explore NSLNISP’s fundamental analysis

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or its company profile on Screener

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for deeper insights. Let me know if you'd like a comparison with SAIL or JSW Steel.

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economictimes.indiatimes.com

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www.screener.in

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www.topstockresearch.com

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