NLC India Adjusts Quality Grade Amidst Competitive Power Sector Landscape

NLC India, a midcap player in the power industry, has recently undergone a quality adjustment that reflects its current financial standing. The company's five-year sales growth stands at 7.54%, while EBIT growth over the same period is recorded at 2.39%. In terms of financial health, NLC India maintains an EBIT to interest ratio of 2.44 and a debt to EBITDA ratio of 5.88, indicating its ability to manage debt relative to earnings.
The company's net debt to equity ratio is 1.49, and it has a sales to capital employed ratio of 0.34. The tax ratio is noted at 13.92%, with a dividend payout ratio of 15.87%. Institutional holding in NLC India is at 21.50%, which reflects a moderate level of institutional interest.

When compared to its peers, NLC India shows a varied performance. While it has outperformed the Sensex in terms of returns over one week, one month, and three years, its one-year return is slightly negative compared to the index. This performance highlights the competitive landscape within the power sector, where companies like JSW Energy, NHPC Ltd, and Torrent Power maintain average standings. The evaluation revision underscores the importance of monitoring financial metrics and market positioning in a dynamic industry.