NLC India Ltd. (NLCINDIA) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

MarketsMojo — Loved in India, Now Global

The power of Mojo is now in 29 countries. Explore global equities with the same cutting-edge features you love.Unlock 29 Markets

Comparison

Company

Score

Quality

Valuation

Financial

Technical

CESC

JP Power Ven.

Torrent Power

JSW Energy

Adani Energy Sol

Reliance Power

NHPC Ltd

NTPC Green Ene.

NLC India

Nava

SJVN

Why is NLC India Ltd. ?

Weak Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 6.66%

Poor long term growth as Net Sales has grown by an annual rate of 8.92% and Operating profit at 6.33% over the last 5 years
Low ability to service debt as the company has a high Debt to EBITDA ratio of 5.01 times

Flat results in Sep 25

INTEREST(9M) At Rs 913.27 cr has Grown at 50.74%
DPR(Y) Lowest at 15.87%
PAT(Q) At Rs 665.12 cr has Fallen at -7.0% (vs previous 4Q average)

Underperformed the market in the last 1 year

Even though the market (BSE500) has generated returns of 2.14% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -9.36% returns

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Power)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is NLC India for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

NLC India

-8.93%

-0.25

37.53%

Sensex

4.83%

0.41

11.83%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

8.92%

EBIT Growth (5y)

6.33%

EBIT to Interest (avg)

2.60

Debt to EBITDA (avg)

5.64

Net Debt to Equity (avg)

1.18

Sales to Capital Employed (avg)

0.35

Tax Ratio

16.23%

Dividend Payout Ratio

15.87%

Pledged Shares

Institutional Holding

21.40%

ROCE (avg)

6.52%

ROE (avg)

11.02%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.65

EV to EBIT

19.54

EV to EBITDA

11.26

EV to Capital Employed

1.30

EV to Sales

3.48

PEG Ratio

0.30

Dividend Yield

1.26%

ROCE (Latest)

6.64%

ROE (Latest)

13.09%

Loading Valuation Snapshot...

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Dow Theory

Mildly Bearish

OBV

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

9What is working for the Company

OPERATING CF(Y)

Highest at Rs 8,977.12 Cr

PAT(9M)

At Rs 1,944.67 cr has Grown at 22.65%

PBT LESS OI(Q)

At Rs 753.03 cr has Grown at 63.7% (vs previous 4Q average

DEBTORS TURNOVER RATIO(HY)

Highest at 5.43 times

-5What is not working for the Company

INTEREST(9M)

At Rs 913.27 cr has Grown at 50.74%

DPR(Y)

Lowest at 15.87%

PAT(Q)

At Rs 665.12 cr has Fallen at -7.0% (vs previous 4Q average

Loading Valuation Snapshot...

Here's what is working for NLC India

Operating Cash Flow - Annually

Highest at Rs 8,977.12 Cr and Grown

each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (Rs Cr)

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 753.03 cr has Grown at 63.7% (vs previous 4Q average)

over average PBT of the previous four quarters of Rs 460.14 Cr

MOJO Watch

Near term PBT trend is very positive

PBT less Other Income (Rs Cr)

Debtors Turnover Ratio- Half Yearly

Highest at 5.43 times

in the last five half yearly periods

MOJO Watch

Company has been able to settle its Debtors faster

Debtors Turnover Ratio

Here's what is not working for NLC India

Interest - Nine Monthly

At Rs 913.27 cr has Grown at 50.74%

over preceding nine months period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (Rs cr)

Profit After Tax (PAT) - Quarterly

At Rs 665.12 cr has Fallen at -7.0% (vs previous 4Q average)

over average PAT of the previous four quarters of Rs 714.87 Cr

MOJO Watch

Near term PAT trend is negative

PAT (Rs Cr)

Dividend Payout Ratio (DPR) - Annually

Lowest at 15.87%

in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)