NSLNISP - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 2.8
| Stock Code | NSLNISP | Market Cap | 12,520 Cr. | Current Price | 42.7 ₹ | High / Low | 49.6 ₹ |
| Book Value | 44.4 ₹ | Dividend Yield | 0.00 % | ROCE | -13.0 % | ROE | -16.6 % |
| Face Value | 10.0 ₹ | DMA 50 | 40.0 ₹ | DMA 200 | 40.9 ₹ | Chg in FII Hold | 0.04 % |
| Chg in DII Hold | 0.18 % | PAT Qtr | -244 Cr. | PAT Prev Qtr | -115 Cr. | RSI | 63.4 |
| MACD | 1.10 | Volume | 1,24,75,855 | Avg Vol 1Wk | 74,16,750 | Low price | 32.9 ₹ |
| High price | 49.6 ₹ | Debt to equity | 0.41 | 52w Index | 58.6 % | Qtr Profit Var | 67.8 % |
| EPS | -2.75 ₹ | Industry PE | 22.9 |
📊 Financials: NSLNISP shows weak fundamentals with negative ROE (-16.6%) and ROCE (-13.0%). EPS is negative at -₹2.75, and quarterly PAT worsened (₹-244 Cr vs ₹-115 Cr), reflecting consistent losses. Debt-to-equity ratio of 0.41 is moderate, but profitability remains a major concern. Dividend yield is 0.00%, offering no income support.
💹 Valuation: The stock currently has no meaningful P/E due to losses, making valuation unattractive. Book value of ₹44.4 provides some intrinsic support, but consistent negative earnings erode confidence. PEG ratio is unavailable, further limiting growth visibility. Compared to industry PE of 22.9, NSLNISP remains fundamentally weak.
🏭 Business Model: NSLNISP operates in steel manufacturing, a cyclical and capital-intensive industry. While scale and government-linked projects provide some stability, persistent losses, weak margins, and lack of dividend payouts undermine its competitive advantage.
📈 Entry Zone: Attractive entry would only be near ₹38–₹40, aligning with support levels and limiting downside risk. Current price (₹42.7) is above both 50 DMA (₹40.0) and 200 DMA (₹40.9), suggesting short-term momentum but weak long-term fundamentals. Investors should avoid aggressive accumulation until profitability improves.
Positive
- Book value of ₹44.4 provides some intrinsic support.
- Moderate debt-to-equity ratio (0.41).
- Institutional inflows with FII (+0.04%) and DII (+0.18%).
Limitation
- Negative ROE (-16.6%) and ROCE (-13.0%).
- Consistent quarterly losses (PAT ₹-244 Cr vs ₹-115 Cr).
- Negative EPS (-₹2.75).
- No dividend yield (0.00%).
Company Negative News
- Persistent losses with worsening quarterly PAT.
- Weak profitability and negative return metrics.
Company Positive News
- Slight increase in institutional holdings (FII and DII).
- Book value provides some cushion against downside.
Industry
- Steel sector remains cyclical and capital-intensive.
- Industry PE at 22.9 highlights NSLNISP’s weak fundamentals.
- Global demand and raw material costs drive volatility.
Conclusion
⚖️ NSLNISP demonstrates weak fundamentals with consistent losses, negative returns, and no dividend support. Entry is only favorable near ₹38–₹40 for risk-tolerant investors. Current levels suggest short-term momentum but poor long-term prospects. Holding should be avoided until profitability stabilizes and return metrics improve.