NCL Research and Financial Services Reports Improved Earnings Amid Long-Term Concerns

Oct 01 2025 08:07 AM IST
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NCL Research and Financial Services, a microcap in the NBFC sector, recently adjusted its evaluation based on financial performance. The company reported positive quarterly results, including a notable PBDIT and PAT. However, concerns about long-term fundamental strength persist, despite attractive stock valuation metrics.
NCL Research and Financial Services, a microcap player in the Non-Banking Financial Company (NBFC) sector, has recently undergone an adjustment in evaluation. This revision reflects the company's financial metrics and market position, highlighting a mix of performance indicators.

In the first quarter of FY25-26, NCL Research and Financial Services reported positive financial results, showcasing a notable PBDIT of Rs 1.51 crore and a PBT less OI of Rs 1.49 crore. The company also achieved a PAT of Rs 1.70 crore, marking a significant improvement compared to previous periods. Despite these positive quarterly results, the long-term fundamental strength remains a concern, as indicated by an average Return on Equity (ROE) of 0.73%.

The stock's valuation appears attractive, with a Price to Book Value ratio of 0.6, suggesting it is trading at a discount relative to its peers' historical valuations. Over the past year, the stock has experienced a return of -22.08%, even as profits surged by 341.4%, with a PEG ratio of 0.1 further illustrating its valuation dynamics.

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