NTC Industries Reports 45.87% Decline in Profit Amidst Strong Sales Growth

NTC Industries, a microcap player in the Cigarettes/Tobacco sector, has recently reported mixed financial results that highlight both challenges and strengths within its operations. For the half-year ending September 2024, the company posted a profit after tax of Rs 3.47 crore, reflecting a significant decline of 45.87% compared to the previous period. This downturn is further underscored by a low operating profit to interest ratio of 1.92 times and a return on capital employed (ROCE) of just 3.99%, marking the lowest levels for the company.
Despite these setbacks, NTC Industries has demonstrated robust long-term growth, with net sales increasing at an annual rate of 23.27% and operating profit soaring by 67.70%. The company maintains a low debt-to-equity ratio of 0.08 times, indicating a conservative approach to leverage.

Over the past year, the stock has generated impressive returns of 164.50%, outperforming the BSE 500 index over various time frames. While the stock is currently trading at a discount to its historical valuations, it remains technically positioned in a mildly bullish range, supported by several positive indicators.