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Check Before You Invest : NLC India Ltd

BSE: 513683 NSE: NLCINDIA ISIN: INE589A01014
  |   Sector:  Power   |   Industry:  Power Generation/Distribution

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 quality company, based on a 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 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 NLC India Ltd?
NLC India Ltd revenue growth is -2.2% for FY-2025 , which is below its 5 year CAGR of 5.4% , indicating slower growth.
Q.2 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.3 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.4 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 Historic Median
Gross Profit Margin 29.7 35.2
Operating Profit Margin 23.59 29.09
Net Profit Margin 18.47 13.94
Q.5 Return on Asset of NLC India Ltd?
NLC India Ltd Return on Asset is 5.2(x), which is above its 5 year historical median of 3.56(x), indicating improved asset utilization efficiency.
Q.6 Return on Equity (ROE) of NLC India Ltd?
NLC India Ltd Return on equity is 11.36% for FY-2025 , which is above its historical median of 9.24%, indicating the business is making better use of its shareholders capital.
Q.7 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 estimated weighted average cost of capital(WACC) 11.25%, indicating value creation.
Q.8 Cash conversion cycle of NLC India Ltd?
NLC India Ltd Cash conversion cycle is 92 , below its historical median of 123 , indicating improved working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 0.28 0.28
ROE 11.36 9.24
ROCE 13.97 13.06
Cash Conversion Cycle 92 123
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 1.05 , 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, indicating the business is able to service its debt comfortably.

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 5.38% , indicating slower growth and losing its market share.
Profit Metrics
Current Level Industry Median
Revenue 10,285.8 14,561
Gross Profit 3,054.9 4,581.3
Operating Profit 2,412 4,386.5
Net Profit 1,900 2,749.5
Operating Efficiency
Current Level Industry Median
Asset Turnover 0.28 0.48
ROE 11.36 12.42
ROCE 13.97 12.26
Cash Conversion Cycle 91.76 98

Valuation & price assessment

Q.1 Stock return of NLC India Ltd over the last decade?
Over the last 9 years, the stock has delivered a CAGR of 14.3% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price 14.3% 41.4% 50.8% 18.6%
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 measure up against the historic numbers and the current industry numbers?
Valuation Ratios Current Historic Median Industry Median
Price to Earnings 19.13 5.37 32.46
Price to Book 2 0.59 1.75
Price to Sales 3.47 0.91 6.05
EV to EBITDA 9.3 5.57 12.85

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