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Check Before You Invest : Tulsyan NEC Ltd

BSE: 513629 NSE: TULSYAN ISIN: INE463D01016
  |   Sector:  Metals & Mining   |   Industry:  Steel & Iron Products

Snapshot

Q.1 Which industry/sub-sector does Tulsyan NEC Ltd belong to?
Tulsyan NEC Ltd belongs to the Metals & Mining sector, operating specifically within the Steel & Iron Products segment.
Q.2 Is Tulsyan NEC Ltd a good quality company?
Tulsyan NEC Ltd is a quality company, based on a 10 year financial track record.
Q.3 Is Tulsyan NEC Ltd undervalued or overvalued?
Tulsyan NEC Ltd appears Undervalued, as its key valuation ratios are below with their past averages.
Q.4 Is Tulsyan NEC Ltd a good buy now?
Tulsyan NEC Ltd is not a good buy now, based on weak price trend analysis suggesting prices may fall. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Tulsyan NEC Ltd?
Tulsyan NEC Ltd revenue growth is -16.6% for FY-2025 , which is below its 5 year CAGR of 1.6% , indicating slower growth.
Q.2 Gross Profit margin of Tulsyan NEC Ltd?
Tulsyan NEC Ltd Gross profit margin which is the profit after deduction of direct costs, is -6.3% for FY-2025 , which is below its 5 year median of -2.5% , indicating decreasing margins.
Q.3 Operating Profit Margin of Tulsyan NEC Ltd?
Tulsyan NEC Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 1.29% for FY-2025 , which is below its 5 year median of 1.46% indicating decreasing margins.
Q.4 Net Profit Margin of Tulsyan NEC Ltd?
Tulsyan NEC Ltd Net Profit Margin is -9.12% for FY-2025 , is below with its 5 year median of -1.63%, indicating decreasing margins.
Current Level Historic Median
Gross Profit Margin -6.3 -2.5
Operating Profit Margin 1.29 1.46
Net Profit Margin -9.12 -1.63
Q.5 Return on Asset of Tulsyan NEC Ltd?
Tulsyan NEC Ltd Return on Asset is -9.47%, which is below its 5 year historical median of -0.92%, indicating deteriorated asset utilization efficiency.
Q.6 Return on Equity (ROE) of Tulsyan NEC Ltd?
Tulsyan NEC Ltd Return on equity is -22.69% for FY-2025 , which is below its historical median of 0%, indicating the business is making worse use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of Tulsyan NEC Ltd?
Tulsyan NEC Ltd Return on capital employed is -1.3% for FY-2025 , which is below its estimated weighted average cost of capital(WACC) 14%, indicating value preservation.
Q.8 Cash conversion cycle of Tulsyan NEC Ltd?
Tulsyan NEC Ltd Cash conversion cycle is 23 days, below its historical median of 56 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 1.04 1.04
ROE -22.69 -
ROCE -1.3 23
Cash Conversion Cycle 23 days 56 days
Q.9 Debt to Equity ratio of Tulsyan NEC Ltd?
Tulsyan NEC Ltd Debt-to-Equity ratio is 1.28 , which is above with the industry average of 0.32 , indicating higher debt levels in the industry.
Q.10 Debt to cash flow from operations of Tulsyan NEC Ltd?
Tulsyan NEC Ltd Debt to cash flow from operations is 9.86 , which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Tulsyan NEC Ltd?
Promoters hold 64.20% of the Tulsyan NEC Ltd, with 99.63% of their stake pledged, indicating high pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Tulsyan NEC Ltd vs industry peers?
Tulsyan NEC Ltd revenue CAGR is 1.62% , compared to the industry median CAGR of 7.41% , indicating stable growth and maintaining its market share.
Profit Metrics
Current Level Industry Median
Revenue 797.4 364.5
Gross Profit -50.2 11.6
Operating Profit 10.3 15
Net Profit -72.7 6
Operating Efficiency
Current Level Industry Median
Asset Turnover 1.04 1.27
ROE -22.69 8.12
ROCE -1.3 11.38
Cash Conversion Cycle (days) 22.97 72

Valuation & price assessment

Q.1 Stock return of Tulsyan NEC Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 7.9% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price 7.9% 24.5% -14.8% -18.5%
Q.3 Valuation ratios of Tulsyan NEC Ltd vs historical?
The current P/E is lower 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 - 0.48 23.93
Price to Book 0.28 0.27 1.46
Price to Sales 0.08 0.12 0.74
EV to EBITDA 18.09 71.60 9.89

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