NTC Industries Ltd is Rated Hold

Current Rating and Its Significance

MarketsMOJO’s 'Hold' rating for NTC Industries Ltd indicates a balanced outlook for investors. It suggests that while the stock is not currently a strong buy, it also does not warrant a sell recommendation. Investors should consider holding their positions, monitoring the company’s performance closely, and evaluating market conditions before making further investment decisions. This rating reflects a moderate risk-reward profile, where the stock exhibits both strengths and challenges.

Rating Update Context

The rating was revised from 'Sell' to 'Hold' on 31 May 2025, accompanied by a 12-point increase in the Mojo Score from 45 to 57. This change reflects an improvement in the company’s outlook based on a comprehensive assessment of multiple parameters. It is important to note that all financial data, returns, and fundamental indicators referenced here are as of 24 December 2025, ensuring that investors receive the most current information rather than relying solely on the rating change date.

Quality Assessment

NTC Industries Ltd holds an average quality grade. The company has demonstrated healthy long-term growth, with net sales increasing at an annual rate of 31.39%. This steady expansion in revenue highlights the company’s ability to sustain operations and grow its market presence. Additionally, the firm has declared positive results for four consecutive quarters, signalling consistent operational performance. However, the average quality grade suggests that while the company is stable, there may be areas such as product diversification, market share, or operational efficiency that require further improvement to elevate its overall quality profile.

Valuation Perspective

The valuation grade for NTC Industries Ltd is very attractive, making it a compelling consideration for value-focused investors. As of 24 December 2025, the company’s return on capital employed (ROCE) stands at 6%, and it trades at an enterprise value to capital employed ratio of 1.1. This indicates that the stock is priced at a discount relative to its peers’ historical valuations. Despite the stock’s underperformance in the market, with a one-year return of -32.12%, the company’s profits have surged by 263.3% over the same period. The PEG ratio of 0.1 further underscores the stock’s undervaluation relative to its earnings growth, suggesting potential upside if market sentiment aligns with fundamentals.

Financial Trend and Profitability

The financial grade for NTC Industries Ltd is outstanding, reflecting robust growth in profitability and earnings quality. The latest six-month data shows net sales at ₹54.37 crores, growing at an impressive rate of 135.88%. Net profit after tax (PAT) for the same period reached ₹10.03 crores, marking a growth of 189.05%. Furthermore, profit before tax excluding other income (PBT less OI) stands at ₹2.44 crores, growing by 187.06%. These figures demonstrate the company’s strong earnings momentum and operational efficiency, which are critical factors supporting the 'Hold' rating. The consistent positive quarterly results reinforce confidence in the company’s financial health and growth trajectory.

Technical Outlook

Despite the positive fundamentals and valuation, the technical grade for NTC Industries Ltd is bearish. The stock has underperformed the broader market, with a year-to-date return of -30.73% and a one-year return of -32.12%, compared to the BSE500 index’s 6.20% gain over the same period. Short-term price trends and momentum indicators suggest caution, as the stock has experienced declines over the past three and six months (-14.05% and -18.56%, respectively). This bearish technical stance advises investors to be mindful of market volatility and potential downside risks in the near term, even as the company’s fundamentals remain solid.

Shareholding and Market Capitalisation

NTC Industries Ltd is classified as a microcap stock within the FMCG sector, with promoters holding the majority stake. This concentrated ownership can provide stability in strategic decision-making but may also limit liquidity. Investors should consider the implications of microcap status, including potential volatility and lower trading volumes, when evaluating the stock for their portfolios.

Investor Takeaway

For investors considering NTC Industries Ltd, the 'Hold' rating reflects a nuanced view. The company’s strong financial performance and attractive valuation metrics provide a solid foundation for potential future gains. However, the bearish technical signals and recent underperformance relative to the broader market counsel caution. Investors should weigh the company’s growth prospects against short-term market risks and consider their own risk tolerance and investment horizon.

Given the stock’s microcap status and sector dynamics, it may be suitable for investors seeking exposure to emerging FMCG companies with growth potential but who are comfortable with volatility. Monitoring quarterly results and market trends will be essential to reassess the stock’s outlook over time.

Summary of Key Metrics as of 24 December 2025

• Mojo Score: 57.0 (Hold)


• Net Sales Growth (Annual): 31.39%


• Net Profit Growth (Latest 6 months): 189.05%


• ROCE: 6%


• Enterprise Value to Capital Employed: 1.1


• 1-Year Stock Return: -32.12%


• BSE500 1-Year Return: +6.20%

These figures highlight the company’s strong earnings growth and attractive valuation despite recent stock price weakness, underscoring the rationale behind the current 'Hold' rating.

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