Check Before You Invest : NCL Industries Ltd

Snapshot

Q.1 Which industry/sub-sector does NCL Industries Ltd belong to?

NCL Industries Ltd belongs to the Construction & Infrastructure sector, operating specifically within the Cement & Construction Materials segment.

Q.2 Is NCL Industries Ltd a good quality company?

NCL Industries Ltd is a average quality company, based on a somewhat consistent 10-year financial track record.

Q.3 Is NCL Industries Ltd undervalued or overvalued?

NCL Industries Ltd appears Somewhat Undervalued, as its key valuation ratios are below with their past averages.

Q.4 Is NCL Industries Ltd a good buy now?

NCL Industries Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of NCL Industries Ltd?

NCL Industries Ltd revenue growth is -14.2% for FY-2025, which is below its 5-year CAGR of 3.56%, indicating slower growth.

Q.2 Return on capital employed (ROCE) of NCL Industries Ltd?

NCL Industries Ltd Return on capital employed is 6.24% for FY-2025, which is below its 5-year historical median of 16.41%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.3 Return on Asset of NCL Industries Ltd?

NCL Industries Ltd Return on Asset is 1.57%, which is below its 5-year historical median of 6.03%, indicating deteriorated asset utilization efficiency.

Q.4 Return on Equity (ROE) of NCL Industries Ltd?

NCL Industries Ltd Return on equity is 2.95% for FY-2025, which is below its 5-year historical median of 11.56%, indicating the business is making worse use of its shareholders capital.

Q.5 Cash conversion cycle of NCL Industries Ltd?

NCL Industries Ltd Cash conversion cycle is 40 days, above its 5-year historical median of 31 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover	1.1	1.51
ROE	2.95	11.56
ROCE	6.24	16.41
Cash Conversion Cycle	40 days	31 days

Q.6 Gross Profit margin of NCL Industries Ltd?

NCL Industries Ltd Gross profit margin which is the profit after deduction of direct costs, is 6.2% for FY-2025, which is below its 5-year median of 8.6%, indicating decreasing margins.

Q.7 Operating Profit Margin of NCL Industries Ltd?

NCL Industries Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 7.75% for FY-2025, which is below its 5-year median of 10.19% indicating decreasing margins.

Q.8 Net Profit Margin of NCL Industries Ltd?

NCL Industries Ltd Net Profit Margin is 1.8% for FY-2025, is below with its 5-year median of 4.8%, indicating decreasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin	6.2	8.6
Operating Profit Margin	7.75	10.19
Net Profit Margin	1.8	4.8

Q.9 Debt to Equity ratio of NCL Industries Ltd?

NCL Industries Ltd Debt-to-Equity ratio is 0.26, which is lower with the industry average of 0.39, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of NCL Industries Ltd?

NCL Industries Ltd Debt to cash flow from operations is 2.36, which is at a moderate level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of NCL Industries Ltd?

Promoters hold 41.56% of the NCL Industries Ltd, with 13.90% of their stake pledged, indicating high pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of NCL Industries Ltd vs industry peers?

NCL Industries Ltd revenue CAGR is 3.56%, compared to the industry median CAGR of 6.22%, indicating slower growth and losing its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	-14.2	6.2
Gross Profit Growth	-46.3	NAN
Operating Profit Growth	-46	-3.8
Net Profit Growth	-73.4	-9.4

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	1.1	0.82
ROE	2.95	7.62
ROCE	6.24	9.4
Cash Conversion Cycle (days)	39.51	23

Valuation & price assessment

Q.1 Stock return of NCL Industries Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of 4.3% based on the current price.

Q.2 What return has the stock given over the last decade?

	9Y	5Y	3Y	1Y
Share Price CAGR	4.3%	-0.8%	-3%	-18.1%

Q.3 Valuation ratios of NCL Industries Ltd vs historical?

The current P/E is similar that its historical median.

Q.4 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	13.34	13.42	22.85
Price to Book	0.88	1.12	1.92
Price to Sales	0.56	0.57	1.40
EV to EBITDA	5.58	5.89	11.62

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