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Check Before You Invest : NTC Industries Ltd

BSE: 526723 NSE: ISIN: INE920C01017
  |   Sector:  FMCG   |   Industry:  Cigarettes/Tobacco

Snapshot

Q.1 Which industry/sub-sector does NTC Industries Ltd belong to?
NTC Industries Ltd belongs to the FMCG sector, operating specifically within the Cigarettes/Tobacco segment.
Q.2 Is NTC Industries Ltd a good quality company?
NTC Industries Ltd is a weak quality company, based on a inconsistent 10 year financial track record.
Q.3 Is NTC Industries Ltd undervalued or overvalued?
NTC Industries Ltd appears Fair, as its key valuation ratios are in line with their past averages.
Q.4 Is NTC Industries Ltd a good buy now?
NTC Industries 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 NTC Industries Ltd?
NTC Industries Ltd revenue growth is 41.7% for FY-2025 , which is above its 5 year CAGR of 26.8% , indicating faster growth.
Q.2 Gross Profit margin of NTC Industries Ltd?
NTC Industries Ltd Gross profit margin which is the profit after deduction of direct costs, is 22.7% for FY-2025 , which is in line with its 5 year median of 22.7% , indicating stable margins.
Q.3 Operating Profit Margin of NTC Industries Ltd?
NTC Industries Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 3.99% for FY-2025 , which is in line with its 5 year median of 3.99% indicating stable margins.
Q.4 Net Profit Margin of NTC Industries Ltd?
NTC Industries Ltd Net Profit Margin is 16.96% for FY-2025 , is in line with with its 5 year median of 16.96%, indicating stable margins.
Current Level Historic Median
Gross Profit Margin 22.7 22.7
Operating Profit Margin 3.99 3.99
Net Profit Margin 16.96 16.96
Q.5 Return on Asset of NTC Industries Ltd?
NTC Industries Ltd Return on Asset is 5.12%, which is below its 5 year historical median of 5.25%, indicating deteriorated asset utilization efficiency.
Q.6 Return on Equity (ROE) of NTC Industries Ltd?
NTC Industries Ltd Return on equity is 6.24% for FY-2025 , which is below its historical median of 6.81%, indicating the business is making worse use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of NTC Industries Ltd?
NTC Industries Ltd Return on capital employed is 8.35% for FY-2025 , which is below its estimated weighted average cost of capital(WACC) 14%, indicating value preservation.
Q.8 Cash conversion cycle of NTC Industries Ltd?
NTC Industries Ltd Cash conversion cycle is 67 days, below its historical median of 77 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 0.32 0.36
ROE 6.24 6.81
ROCE 8.35 8.35
Cash Conversion Cycle 67 days 77 days
Q.9 Debt to Equity ratio of NTC Industries Ltd?
NTC Industries Ltd Debt-to-Equity ratio is 0.02 , which is above with the industry average of 0 , indicating higher debt levels in the industry.
Q.10 Debt to cash flow from operations of NTC Industries Ltd?
NTC Industries Ltd Debt to cash flow from operations is -0.15 , which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of NTC Industries Ltd?
Promoters hold 54.34% of the NTC Industries Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of NTC Industries Ltd vs industry peers?
NTC Industries Ltd revenue CAGR is 26.78% , compared to the industry median CAGR of 2.43% , indicating faster growth and gaining its market share.
Profit Metrics
Current Level Industry Median
Revenue 46.4 41.8
Gross Profit 10.4 5.1
Operating Profit 2 10.7
Net Profit 8 1
Operating Efficiency
Current Level Industry Median
Asset Turnover 0.32 0.36
ROE 6.24 0.39
ROCE 8.35 2
Cash Conversion Cycle (days) 66.55 77

Valuation & price assessment

Q.1 Stock return of NTC Industries Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 16.2% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price 16.2% 22.5% 31.3% -17.7%
Q.3 Valuation ratios of NTC Industries 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 19.25 5.00 18.58
Price to Book 1.25 0.36 3.71
Price to Sales 3.35 1.14 3.15
EV to EBITDA 13.7 4.44 18.20

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