NSLNISP - Investment Analysis

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

Investment Rating: 2.1

📉 Fundamental Analysis

Red Flags

Negative ROE (−16.6%) & ROCE (−13.0%): Indicates poor capital efficiency and ongoing losses.

No EPS / P/E / PEG Ratio: Lack of earnings makes valuation assessment difficult — a major concern for long-term investors.

Zero Dividend Yield: No income generation for shareholders.

Consistently Negative PAT: Though losses narrowed from ₹758 Cr to ₹473 Cr, the company remains in the red.

Trading Below Key Averages: Price is below both 50 DMA (₹38.7) and 200 DMA (₹41.2), confirming bearish trend.

RSI at 26.9: Deeply oversold, but no reversal signal yet.

MACD Negative (−0.65): Momentum remains weak.

Minor Positives

Debt-to-Equity (0.45): Reasonable leverage for a capital-intensive business.

Improving Losses: Quarterly loss reduction (−45%) shows some operational improvement.

Stable Volume: Liquidity is intact, with volume matching weekly average.

💡 Is It a Good Long-Term Investment?

Not currently. NSLNISP is in a turnaround phase, but the fundamentals are too weak for a long-term position. Negative profitability, lack of earnings visibility, and no dividend make it speculative at best.

🎯 Ideal Entry Price Zone

Speculative Entry Zone: ₹28–₹32 Only suitable for high-risk investors betting on a turnaround. This range is near the 52-week low and offers minimal downside if losses continue.

🧭 Exit Strategy / Holding Period

If you already hold the stock

Holding Period: Short-term (6–12 months) unless profitability improves.

Exit Strategy

Exit on Rebound near ₹42–₹45 if technicals improve and losses narrow further.

Cut Losses if price breaks below ₹28 or quarterly losses widen again.

Re-evaluate if ROE turns positive and EPS becomes consistently positive — only then consider long-term holding.

Would you like a deeper dive into the steel sector to see how NSLNISP compares with peers like JSW Steel or Tata Steel?

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