⚠ 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: 2.9
| Stock Code | NSLNISP | Market Cap | 10,896 Cr. | Current Price | 37.2 ₹ | High / Low | 49.6 ₹ |
| Book Value | 44.4 ₹ | Dividend Yield | 0.00 % | ROCE | -13.0 % | ROE | -16.6 % |
| Face Value | 10.0 ₹ | DMA 50 | 39.8 ₹ | DMA 200 | 41.3 ₹ | Chg in FII Hold | -0.32 % |
| Chg in DII Hold | 0.33 % | PAT Qtr | -244 Cr. | PAT Prev Qtr | -115 Cr. | RSI | 40.0 |
| MACD | -1.06 | Volume | 32,12,828 | Avg Vol 1Wk | 36,54,200 | Low price | 28.4 ₹ |
| High price | 49.6 ₹ | Debt to equity | 0.41 | 52w Index | 41.5 % | Qtr Profit Var | 67.8 % |
| EPS | -2.75 ₹ | Industry PE | 20.1 |
📊 Financials
- Revenue & Profitability: PAT worsened from -₹115 Cr. to -₹244 Cr., showing deep losses. EPS at -₹2.75 reflects negative earnings.
- Margins & Returns: ROCE (-13.0%) and ROE (-16.6%) are negative, indicating poor efficiency and shareholder returns.
- Debt: Debt-to-equity ratio of 0.41 indicates moderate leverage, manageable but risky given losses.
- Cash Flow: Weak due to sustained losses, though moderate debt provides some cushion.
💹 Valuation
- P/E Ratio: Not applicable due to negative earnings.
- P/B Ratio: ~0.84 (Price ₹37.2 / Book Value ₹44.4) → Trading below book value, reflecting market pessimism.
- PEG Ratio: Not meaningful due to negative earnings.
- Intrinsic Value: Current price reflects distress valuation, with limited upside unless profitability improves.
🏢 Business Model & Competitive Advantage
- NSL NISP operates in steel production, a cyclical and capital-intensive industry.
- Competitive advantage is limited due to losses and weaker efficiency compared to peers.
- No dividend yield, reflecting focus on survival and reinvestment.
📈 Entry Zone & Long-Term Guidance
- Entry Zone: Attractive only near ₹28–32 range (close to 52W low of ₹28.4), given current losses.
- Long-Term Holding: High-risk investment. Suitable only for speculative investors betting on turnaround. Conservative investors should avoid until profitability stabilizes.
✅ Positive
- Stock trades below book value, offering potential value if turnaround occurs.
- DII holdings increased (+0.33%), showing some domestic institutional support.
- Debt-to-equity ratio of 0.41 is moderate compared to industry norms.
⚠️ Limitation
- Negative ROCE and ROE highlight poor efficiency.
- Consistent losses limit investor confidence.
- No dividend yield reduces attractiveness for income investors.
📉 Company Negative News
- PAT worsened significantly compared to previous quarter.
- FII holdings reduced (-0.32%), showing cautious foreign sentiment.
- MACD at -1.06 indicates bearish technical momentum.
📈 Company Positive News
- DII holdings increased (+0.33%), reflecting some domestic institutional confidence.
- Stock trading near DMA 50 (₹39.8) shows technical support zone.
🏭 Industry
- Steel industry is cyclical, tied to infrastructure demand and global commodity prices.
- Industry PE at 20.1 suggests peers are profitable, highlighting NSL NISP’s relative weakness.
🔎 Conclusion
- NSL NISP is currently loss-making with weak fundamentals and negative return ratios.
- Valuation below book value reflects market pessimism, but offers speculative opportunity if turnaround occurs.
- Best strategy: Avoid aggressive buying. Speculative investors may accumulate near ₹28–32 range, while long-term conservative investors should wait for profitability improvement.