Is NACL Industries overvalued or undervalued?

As of February 13, 2025, NACL Industries is considered risky and overvalued with poor financial metrics, including a negative PE ratio and ROE, despite a strong past year performance compared to the Sensex, indicating that investors should be cautious.

As of 13 February 2025, the valuation grade for NACL Industries has moved from fair to risky, indicating a significant deterioration in its financial health. The company is currently considered overvalued, with a PE ratio of -28.51 and an EV to EBITDA ratio of -60.45, both of which suggest that the market is pricing in substantial risks. Additionally, the ROE stands at -28.42%, further highlighting the company's struggles in generating returns for shareholders.<BR><BR>In comparison to its peers, NACL Industries lags significantly behind, with P I Industries showing a PE of 35.59 and UPL at 38.74, both categorized as very expensive or attractive, respectively. The stark contrast in valuations underscores the challenges faced by NACL Industries in the current market environment. While the company has outperformed the Sensex over the past year with a return of 158.76% compared to the Sensex's 7.58%, the current financial metrics suggest that investors should exercise caution.

Who are in the management team of NACL Industries?

As of March 2023, the management team of NACL Industries includes K Lakshmi Raju (Chairman), M Pavan Kumar (Managing Director & CEO), and several independent and non-executive directors, totaling 13 members who guide the company's governance and strategy.

As of March 2023, the management team of NACL Industries includes the following individuals:<BR><BR>1. K Lakshmi Raju - Chairman & Non Executive Director<BR>2. Sudhakar Kudva - Independent Non Executive Director<BR>3. N Vijaya Raghavan - Independent Non Executive Director<BR>4. Raghavende Matei - Independent Non Executive Director<BR>5. Atul Churiwal - Non Executive Director / Nomin<BR>6. Rajesh Kumar Agarwal - Non Executive Director / Nomin<BR>7. M Pavan Kumar - Managing Director & CEO<BR>8. Ram Krishna Mudholkar - Independent Non Executive Director<BR>9. Sambasiva Rao Nannapaneni - Independent Non Executive Director<BR>10. Veni Mocherla - Independent Non Executive Director<BR>11. C. Varadha Rajulu - Non-Executive Non-Independent<BR>12. Raj Kaul - Non-Executive & Non-Independent Director<BR>13. Santanu Mukherjee - Independent Non Executive Director<BR><BR>This team comprises a mix of executive and non-executive directors, including independent directors, contributing to the governance and strategic direction of the company.

What does NACL Industries do?

NACL Industries Ltd, established in 1986, operates in the pesticides and agrochemicals sector, focusing on crop protection. As of March 2025, it reported net sales of 201 Cr and a net loss of 50 Cr, with a market cap of Rs 3,450 Cr.

Overview:<BR>NACL Industries Ltd operates in the pesticides and agrochemicals industry, focusing on crop protection through the manufacture of various agricultural chemicals.<BR><BR>History:<BR>NACL Industries Ltd was incorporated in November 1986, originally known as Nagarjuna Agrichem Limited, and adopted its current name in October 1996. The latest quarterly results reported net sales and profit for the period ending March 2025.<BR><BR>Financial Snapshot:<BR>- Most recent Net Sales: 201 Cr (Quarterly Results - Mar 2025)<BR>- Most recent Net Profit: -50 Cr (Quarterly Results - Mar 2025)<BR>- Market-cap value: Rs 3,450 Cr (Small Cap)<BR><BR>Key Metrics:<BR>- P/E: N/A (Loss Making)<BR>- Industry P/E: 38<BR>- Dividend Yield: 0.00%<BR>- Debt-Equity: 0.79<BR>- Return on Equity: -28.42%<BR>- Price to Book: 8.19<BR><BR>Contact Details:<BR>- Address: Plot No 12A C-Blk Lakshmi Towe, No 82-2-248/1/7/78 Nag Hills Hyderabad Telangana : 500082<BR>- Phone: 91-40-33185100<BR>- Email: cs-nacl@naclind.com<BR>- Website: http://www.naclind.com

What is the bonus history of the NACL Industries?

NACL Industries announced a bonus issue on May 30, 2013, in the ratio of 3:14, meaning shareholders received 3 additional shares for every 14 shares held, with a record date of June 1, 2013.

NACL Industries has a bonus history that includes a notable issue announced on May 30, 2013. The company declared a bonus in the ratio of 3:14, with the record date for this bonus being June 1, 2013. This means that for every 14 shares held, shareholders received 3 additional shares as a bonus.

Has NACL Industries declared dividend?

NACL Industries Ltd has declared a 25% dividend, with an ex-date of September 8, 2023. Despite the dividend declaration, the yield remains at 0%, but the company has shown strong price returns, achieving a total return of 544.0% over the past five years.

NACL Industries Ltd has declared a 25% dividend.<BR><BR>Dividend Details:<BR>- Percentage announced: 25%<BR>- Ex-date: 08 Sep 23<BR><BR>Dividend Yield: 0%<BR><BR>Total Returns by Period:<BR>In the last 6 months, the price return was 225.99%, with a dividend return of 0%, resulting in a total return of 225.99%.<BR><BR>Over the 1-year period, the price return was 160.37%, with a dividend return of 0%, leading to a total return of 160.37%.<BR><BR>For the 2-year period, the price return stood at 77.52%, with a dividend return of 0%, culminating in a total return of 77.52%.<BR><BR>In the 3-year period, the price return was 116.5%, with a dividend return of 0.82%, resulting in a total return of 117.32%.<BR><BR>During the 4-year period, the price return was 180.77%, with a dividend return of 1.48%, leading to a total return of 182.25%.<BR><BR>Over the 5-year period, the price return was 540.37%, with a dividend return of 3.63%, culminating in a total return of 544.0%.<BR><BR>Overall, while NACL Industries Ltd has declared a dividend, the dividend yield remains at 0%, indicating that the dividend may not significantly impact the returns. However, the company has demonstrated strong price returns across all periods, suggesting robust performance in the stock price.

Who are the peers of the NACL Industries?

NACL Industries' peers include P I Industries, UPL, Bayer CropSci., and others, with varying management and growth risks. NACL Industries has a 1-year return of 163.56%, outperforming most peers, while Dhanuka Agritech leads with a 32.65% return.

Peers: The peers of NACL Industries are P I Industries, UPL, Bayer CropSci., Sumitomo Chemi., Dhanuka Agritech, Insecticid.India, India Pesticides, Meghmani Organi., and Punjab Chemicals.<BR><BR>Quality Snapshot: Excellent management risk is observed at Bayer CropSci. and Dhanuka Agritech, while Good management risk is found at P I Industries and Sumitomo Chemi. Average management risk is present at UPL, NACL Industries, Insecticid.India, India Pesticides, and Punjab Chemicals, and the rest have Below Average management risk. Growth is Excellent at P I Industries, while Average growth is noted at Dhanuka Agritech, and the rest have Below Average growth. Capital Structure is Excellent at Bayer CropSci., Sumitomo Chemi., Dhanuka Agritech, Insecticid.India, and India Pesticides, while Good is seen at Punjab Chemicals, Average at Meghmani Organi. and Astec Lifescienc, and Below Average at UPL and NACL Industries.<BR><BR>Return Snapshot: Dhanuka Agritech has the highest 1-year return at 32.65%, while India Pesticides has the lowest at -0.73%. NACL Industries' 1-year return of 163.56% is significantly higher than both. Additionally, UPL, Sumitomo Chemi., Meghmani Organi., and Astec Lifescienc have negative six-month returns.

Who are the top shareholders of the NACL Industries?

The top shareholders of NACL Industries include Klr Products Limited with 56.47%, Rajesh Kumar Agarwal with 7.77%, and individual investors holding 22.56%. There are no pledged promoter holdings, reflecting strong promoter commitment.

The top shareholders of NACL Industries include Klr Products Limited, which holds the largest stake at 56.47%. The highest public shareholder is Rajesh Kumar Agarwal, with a holding of 7.77%. Additionally, individual investors collectively own 22.56% of the company. There are also four foreign institutional investors (FIIs) that hold a small portion, amounting to 0.12%. Notably, there are no pledged promoter holdings, indicating a strong commitment from the promoters.

How big is NACL Industries?

As of 24th July, NACL Industries Ltd has a market capitalization of 6,136.00 Cr and reported net sales of 1,234.52 Cr, with a loss of 92.13 Cr over the latest four quarters. Shareholder's funds are 511.10 Cr, and total assets amount to 1,808.20 Cr.

As of 24th July, NACL Industries Ltd has a market capitalization of 6,136.00 Cr, categorizing it as a Mid Cap company.<BR><BR>In the latest four quarters, NACL Industries reported net sales of 1,234.52 Cr. However, the company experienced a loss of 92.13 Cr during the same period.<BR><BR>The latest annual reporting period for the balance sheet is March 2024. Shareholder's funds are recorded at 511.10 Cr, while total assets amount to 1,808.20 Cr.

Is NACL Industries technically bullish or bearish?

As of 12 August 2025, NACL Industries has a mildly bullish trend, supported by bullish MACD indicators and daily moving averages, though weekly and monthly RSI readings indicate some momentum weakness.

As of 12 August 2025, the technical trend for NACL Industries has changed from bullish to mildly bullish. The current stance is mildly bullish, driven primarily by the weekly and monthly MACD indicators, which remain bullish, and the daily moving averages also indicating bullish momentum. However, the weekly and monthly RSI readings are bearish, suggesting some weakness in momentum. The Bollinger Bands indicate a mildly bullish trend, while the KST shows a mixed signal with a mildly bearish weekly reading but a bullish monthly outlook. Overall, the Dow Theory supports a bullish stance on both weekly and monthly time frames.

How has been the historical performance of NACL Industries?

NACL Industries has faced a significant decline in net sales and profitability, with losses reported in the most recent fiscal year, including a drop in profit after tax from 93.49 Cr in Mar'23 to -92.46 Cr in Mar'25. Despite improved cash flow from operating activities, overall financial health remains challenged, as indicated by a decrease in book value per share from 28.87 to 21.23 during the same period.

Answer:<BR>The historical performance of NACL Industries shows a significant decline in net sales and profitability over the past few years, culminating in losses in the most recent fiscal year.<BR><BR>Breakdown:<BR>NACL Industries experienced a decrease in net sales from 2,115.51 Cr in Mar'23 to 1,234.52 Cr in Mar'25. This decline in revenue is accompanied by a rise in total expenditure, which increased from 1,922.99 Cr in Mar'23 to 1,297.39 Cr in Mar'25, leading to an operating profit (PBDIT) that fell from 202.51 Cr to -54.83 Cr during the same period. The company reported a profit before tax of -119.57 Cr in Mar'25, compared to a profit of 127.03 Cr in Mar'23. Consequently, the profit after tax also turned negative, dropping from 93.49 Cr in Mar'23 to -92.46 Cr in Mar'25. The total assets of the company decreased from 1,913.83 Cr in Mar'23 to 1,224.84 Cr in Mar'25, while total liabilities also fell from 1,808.20 Cr to 1,224.84 Cr. Cash flow from operating activities improved to 468.00 Cr in Mar'25 from 50.00 Cr in Mar'24, but the overall financial health reflects challenges, with a book value per share declining from 28.87 in Mar'23 to 21.23 in Mar'25.

When is the next results date for NACL Industries?

The next results date for NACL Industries is 24 October 2025.

The next results date for NACL Industries is scheduled for 24 October 2025.

Are NACL Industries latest results good or bad?

NACL Industries' latest results are concerning, showing a 3.78% revenue increase to ₹456.94 crores, but a drastic 82.66% decline in net profit to ₹2.55 crores, primarily due to high tax expenses and operational challenges. Investors should proceed with caution given the significant drop in profitability.

The latest results for NACL Industries indicate a challenging situation for the company. While there was a slight increase in revenue, with a year-on-year growth of 3.78% to ₹456.94 crores, the net profit has significantly declined by 82.66% compared to the same quarter last year, dropping to just ₹2.55 crores. This sharp decrease in profitability raises concerns about the company's operational efficiency and cost management.<BR><BR>Despite achieving a marginal improvement in operating margin to 9.79%, the profit after tax margin has plummeted to 0.56%, down from 3.34% a year earlier. This suggests that while the company is generating revenue, it is struggling to convert that into meaningful profits, primarily due to high tax expenses and possibly other operational challenges.<BR><BR>Moreover, the effective tax rate for the quarter was extraordinarily high at 60.47%, which is more than double the historical average. This anomaly further complicates the outlook for the company, as it indicates potential issues that could affect future profitability.<BR><BR>Overall, while there are some positive signs in revenue stability, the dramatic decline in net profit and the high tax burden suggest that the latest results are more concerning than encouraging. Investors may need to approach the stock with caution until there are clearer signs of a turnaround in profitability.

Should I buy, sell or hold NACL Industries?

Why is NACL Industries falling/rising?

As of 03-Dec, NACL Industries Ltd's stock price has risen slightly to 182.95, indicating a potential shift in market sentiment after recent declines. However, despite this short-term increase, the stock has shown negative performance over the past week and month, and faces long-term challenges such as weak fundamental strength and reduced promoter stake.

As of 03-Dec, NACL Industries Ltd is experiencing a slight rise in its stock price, currently at 182.95, with a change of 0.3 (0.16%) upward. This increase follows a trend reversal after three consecutive days of decline, indicating a potential shift in market sentiment. The stock has outperformed its sector by 0.53% today, which may contribute to the positive movement in its price.<BR><BR>Despite this short-term rise, the stock has shown a negative performance over the past week and month, with declines of 2.06% and 8.62%, respectively. However, it has demonstrated strong year-to-date and one-year returns of 174.12% and 243.70%, significantly outpacing the market benchmark, the Sensex, which has only returned 8.92% and 5.27% during the same periods.<BR><BR>Investor participation appears to be increasing, as evidenced by a rise in delivery volume by 7.97% against the five-day average, suggesting growing interest in the stock. Nevertheless, the company faces challenges, including weak long-term fundamental strength, as indicated by a -192.94% CAGR growth in operating profits over the last five years and a high Debt to EBITDA ratio of 5.35 times. Additionally, the reduction in promoter stake by 9.99% may reflect a lack of confidence in the company's future prospects.<BR><BR>In summary, while NACL Industries is currently rising in price due to a short-term trend reversal and increased investor participation, it is important to consider the underlying challenges that may affect its long-term performance.

Which are the latest news on NACL Industries?