Check Before You Invest : NLC India Ltd

Snapshot

Q.1 Which industry/sub-sector does NLC India Ltd belong to?

NLC India Ltd belongs to the Power sector, operating specifically within the Power Generation/Distribution segment.

Q.2 Is NLC India Ltd a good quality company?

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

Q.3 Is NLC India Ltd undervalued or overvalued?

NLC India Ltd appears Overvalued, as its key valuation ratios are above with their past averages.

Q.4 Is NLC India Ltd a good buy now?

NLC India Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of NLC India Ltd?

NLC India Ltd revenue growth is -2.2% for FY-2025, which is below its 5-year CAGR of 5.38%, indicating slower growth.

Q.2 Return on capital employed (ROCE) of NLC India Ltd?

NLC India Ltd Return on capital employed is 13.97% for FY-2025, which is above its 5-year historical median of 13.06%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 11.25%, indicating value creation.

Q.3 Return on Asset of NLC India Ltd?

NLC India Ltd Return on Asset is 5.2%, which is above its 5-year historical median of 3.56%, indicating improved asset utilization efficiency.

Q.4 Return on Equity (ROE) of NLC India Ltd?

NLC India Ltd Return on equity is 11.36% for FY-2025, which is above its 5-year historical median of 9.24%, indicating the business is making better use of its shareholders capital.

Q.5 Cash conversion cycle of NLC India Ltd?

NLC India Ltd Cash conversion cycle is 92 days, below its 5-year historical median of 123 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover	0.28	0.28
ROE	11.36	9.24
ROCE	13.97	13.06
Cash Conversion Cycle	92 days	123 days

Q.6 Gross Profit margin of NLC India Ltd?

NLC India Ltd Gross profit margin which is the profit after deduction of direct costs, is 29.7% for FY-2025, which is below its 5-year median of 35.2%, indicating decreasing margins.

Q.7 Operating Profit Margin of NLC India Ltd?

NLC India Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 23.59% for FY-2025, which is below its 5-year median of 29.09% indicating decreasing margins.

Q.8 Net Profit Margin of NLC India Ltd?

NLC India Ltd Net Profit Margin is 18.47% for FY-2025, is above with its 5-year median of 13.94%, indicating increasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin	29.7	35.2
Operating Profit Margin	23.59	29.09
Net Profit Margin	18.47	13.94

Q.9 Debt to Equity ratio of NLC India Ltd?

NLC India Ltd Debt-to-Equity ratio is 0.43, which is lower with the industry average of 0.78, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of NLC India Ltd?

NLC India Ltd Debt to cash flow from operations is 1.33, which is at a healthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of NLC India Ltd?

Promoters hold 72.20% of the NLC India Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of NLC India Ltd vs industry peers?

NLC India Ltd revenue CAGR is 5.38%, compared to the industry median CAGR of 6.32%, indicating slower growth and losing its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	-2.2	6.3
Gross Profit Growth	-6.9	4.6
Operating Profit Growth	-20.8	2.1
Net Profit Growth	2.9	9.5

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	0.28	0.26
ROE	11.36	10.18
ROCE	13.97	10.95
Cash Conversion Cycle (days)	91.76	69

Valuation & price assessment

Q.1 Stock return of NLC India Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of 16.8% based on the current price.

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

	9Y	5Y	3Y	1Y
Share Price CAGR	16.8%	46.2%	55.3%	43.6%

Q.3 Valuation ratios of NLC India Ltd vs historical?

The current P/E is higher 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	22.67	13.10	27.19
Price to Book	2.37	1.25	1.80
Price to Sales	4.12	1.52	6.78
EV to EBITDA	10.72	6.70	13.53

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