NTC Industries Ltd is Rated Hold by MarketsMOJO

Rating Overview and Context

On 31 May 2025, MarketsMOJO revised the rating for NTC Industries Ltd from 'Sell' to 'Hold', reflecting an improvement in the company's overall outlook. The Mojo Score increased by 12 points, moving from 45 to 57, signalling a more balanced stance on the stock. This 'Hold' rating suggests that investors should maintain their current positions rather than aggressively buying or selling, as the stock exhibits a mix of strengths and challenges.

It is important to note that while the rating change occurred in May 2025, all fundamentals, returns, and financial metrics discussed below are based on the latest data available as of 04 January 2026. This ensures that investors receive a current and comprehensive assessment of NTC Industries Ltd's standing in the market.

Here’s How the Stock Looks Today

As of 04 January 2026, NTC Industries Ltd remains a microcap player in the FMCG sector, with a Mojo Score of 57.0 and a corresponding 'Hold' grade. The stock has experienced mixed price movements recently, with a notable 4.58% gain on the day, a modest 2.54% rise over the past week, but declines over longer periods including a 10.48% drop over three months and a 28.71% fall over the past year. Despite this underperformance relative to the broader market — the BSE500 index has returned 5.35% over the same one-year period — the company’s underlying financials tell a more encouraging story.

Quality Assessment

NTC Industries Ltd holds an average quality grade, reflecting a stable but not exceptional operational profile. The company has demonstrated healthy long-term growth, with net sales increasing at an annualised rate of 31.39%. This growth trajectory is supported by consistent quarterly performance, having declared positive results for four consecutive quarters. The latest six-month figures show net sales of ₹54.37 crores, growing at an impressive 135.88%, while profit after tax (PAT) surged by 189.05% to ₹10.03 crores. These figures indicate a robust operational momentum that underpins the company’s quality standing.

Valuation Perspective

From a valuation standpoint, NTC Industries Ltd is considered very attractive. The company’s return on capital employed (ROCE) stands at 6%, and it trades at an enterprise value to capital employed ratio of just 1.1. This valuation is notably discounted compared to its peers’ historical averages, suggesting that the stock may offer value opportunities for investors willing to look beyond short-term price volatility. The price-to-earnings-growth (PEG) ratio is exceptionally low at 0.1, signalling that the stock’s price does not fully reflect its earnings growth potential.

Financial Trend Analysis

The financial trend for NTC Industries Ltd is rated outstanding, reflecting strong growth in profitability and earnings quality. The company’s net profit has grown by 123.59%, with profit before tax less other income (PBT less OI) rising by 187.06% in the latest quarter. This consistent upward trajectory in earnings is a positive indicator for investors, signalling operational efficiency and effective cost management. The company’s ability to sustain positive quarterly results over multiple periods further reinforces confidence in its financial health.

Technical Outlook

Despite the encouraging fundamentals, the technical grade for NTC Industries Ltd is bearish. The stock’s price performance over recent months has been weak, with declines of 10.48% over three months and 13.70% over six months. This technical weakness suggests that market sentiment remains cautious, possibly due to broader sector pressures or microcap volatility. Investors should be mindful of this technical backdrop when considering entry or exit points, as price momentum may take time to align with the company’s improving fundamentals.

Shareholding and Market Position

The majority shareholding is held by promoters, which often indicates stable ownership and potential alignment with shareholder interests. However, the stock’s underperformance relative to the broader market index over the past year highlights the need for investors to weigh valuation and growth prospects carefully against prevailing market conditions.

What the Hold Rating Means for Investors

The 'Hold' rating assigned to NTC Industries Ltd by MarketsMOJO reflects a balanced view of the stock’s prospects. It suggests that while the company exhibits strong financial growth and attractive valuation metrics, the current technical weakness and recent price underperformance warrant a cautious approach. Investors holding the stock may consider maintaining their positions to benefit from the company’s improving fundamentals, while new investors might wait for clearer technical signals before committing capital.

In essence, the 'Hold' rating advises neither aggressive accumulation nor immediate divestment, but rather a measured stance that recognises both the opportunities and risks inherent in the stock’s current profile.

Summary

NTC Industries Ltd’s current 'Hold' rating is supported by its outstanding financial trend, very attractive valuation, and average quality metrics. Despite a bearish technical outlook and recent price underperformance, the company’s strong sales and profit growth, coupled with discounted valuation multiples, provide a compelling case for investors to watch the stock closely. The rating update on 31 May 2025 marked a positive shift in sentiment, and as of 04 January 2026, the stock’s fundamentals continue to improve, making it a candidate for cautious consideration within a diversified portfolio.

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