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Last Updated on: 14 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo
Stock Ticker - BSE: 502168 | NSE: NCLIND

NCL Industries Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 12, 2024, 5:51 pm

Market Cap 918 Cr.
Current Price 203
High / Low260/180
Stock P/E13.0
Book Value 190
Dividend Yield1.97 %
ROCE15.8 %
ROE11.3 %
Face Value 10.0
PEG Ratio-0.85

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for NCL Industries Ltd

Competitors of NCL Industries Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Bheema Cements Ltd 73.7 Cr. 22.635.3/21.0 13.20.00 %11.8 %56.4 % 10.0
UltraTech Cement Ltd 3,09,409 Cr. 10,72812,138/8,54447.1 2,1260.65 %15.1 %12.2 % 10.0
The Ramco Cements Ltd 21,299 Cr. 9021,058/70077.2 3020.28 %8.17 %5.63 % 1.00
The India Cements Ltd 11,000 Cr. 355386/173 1700.00 %0.78 %4.81 % 10.0
Star Cement Ltd 7,375 Cr. 183256/16237.3 67.90.00 %16.5 %11.5 % 1.00
Industry Average32,705.04 Cr1,766.7033.66524.900.60%11.13%16.10%7.13

All Competitor Stocks of NCL Industries Ltd

Quarterly Result

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024
Sales415.40369.59445.41390.67364.97419.13434.88440.53390.86505.02494.94354.89330.38
Expenses353.77332.97404.09357.96341.28365.67396.34377.67351.62447.86446.09318.68296.78
Operating Profit61.6336.6241.3232.7123.6953.4638.5462.8639.2457.1648.8536.2133.60
OPM %14.84%9.91%9.28%8.37%6.49%12.75%8.86%14.27%10.04%11.32%9.87%10.20%10.17%
Other Income2.902.374.553.475.552.717.504.563.923.456.283.58-6.59
Interest5.926.365.966.496.787.075.864.806.985.875.315.675.18
Depreciation11.1411.1311.1610.9011.9812.6412.9713.1913.4413.0316.0612.7414.88
Profit before tax47.4721.5028.7518.7910.4836.4627.2149.4322.7441.7133.7621.386.95
Tax %34.32%29.49%39.69%33.63%73.57%45.34%60.24%37.12%39.14%39.82%28.38%39.52%61.87%
Net Profit31.1815.1617.3312.472.7719.9410.8231.0813.8425.1124.1812.942.65
EPS in Rs6.893.353.832.760.614.412.396.873.065.555.352.860.59

Last Updated: November 12, 2024, 5:51 pm

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: November 12, 2024, 5:51 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024TTM
Sales4705515347508688809809381,3842,0461,6101,8711,685
Expenses4135214636287537468437971,1001,8381,4611,6621,509
Operating Profit572970122115134137140284208149209176
OPM %12%5%13%16%13%15%14%15%21%10%9%11%10%
Other Income3552476371119187
Interest36413731323237322225272422
Depreciation33312625253545424145485657
Profit before tax-9-3812676274616922815093148104
Tax %28%8%28%21%11%34%23%27%35%34%51%36%
Net Profit-12-419535549475114998469465
EPS in Rs-3.30-11.682.5514.4514.8810.8610.3611.2432.8721.7010.1720.8314.35
Dividend Payout %-30%-9%-0%14%17%23%24%1%12%14%30%14%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)-241.67%121.95%488.89%3.77%-10.91%-4.08%8.51%192.16%-34.23%-53.06%104.35%
Change in YoY Net Profit Growth (%)0.00%363.62%366.94%-485.12%-14.68%6.83%12.59%183.65%-226.39%-18.83%157.41%

NCL Industries Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2013-2014 to 2023-2024.

Growth

Compounded Sales Growth
10 Years:13%
5 Years:14%
3 Years:11%
TTM:0%
Compounded Profit Growth
10 Years:16%
5 Years:15%
3 Years:-15%
TTM:-7%
Stock Price CAGR
10 Years:16%
5 Years:21%
3 Years:-4%
1 Year:-9%
Return on Equity
10 Years:14%
5 Years:13%
3 Years:10%
Last Year:11%

Last Updated: Unknown

Balance Sheet

Last Updated: November 14, 2024, 7:59 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital35353537374545454545454545
Reserves141108118160190416454483620699730810814
Borrowings227217179202347278336347320335292218244
Other Liabilities222247258224210224260278314392441469457
Total Liabilities6246075906237849621,0951,1531,2991,4721,5081,5421,560
Fixed Assets423430407392385693658695789773986969943
CWIP39721115233909061171283970
Investments000000003050355151
Other Assets162170181221246237346368419477459484496
Total Assets6246075906237849621,0951,1531,2991,4721,5081,5421,560

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +56-2561301815671106237106208183
Cash from Investing Activity +-24-54-18-161-223-69-78-136-139-101-64
Cash from Financing Activity +-337-57-97133704-31-52-25-83-110
Net Cash Flow-1-0315-946-449-58249

Free Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow-170.00-188.00-109.00-80.00-232.00-144.00-199.00-207.00-36.00-127.00-143.00-9.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days322930262032565627303228
Inventory Days272261242256199240214327173186240217
Days Payable20422619199126146184197121103144114
Cash Conversion Cycle1006482183931278718680114128131
Working Capital Days-12-11-25-311412532-2393226
ROCE %6%1%14%27%19%16%12%12%27%17%11%16%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthDec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024
Promoters44.00%45.04%45.73%46.14%46.48%47.13%47.27%44.48%44.48%43.71%42.31%42.08%
FIIs3.10%3.00%2.75%2.81%2.33%2.38%3.49%4.23%4.88%5.17%5.41%5.33%
DIIs0.05%0.06%0.06%0.16%0.16%0.03%0.03%0.03%0.03%0.03%0.39%0.03%
Government0.02%0.02%0.02%0.02%0.02%0.02%0.02%0.02%0.02%0.02%0.02%0.02%
Public52.84%51.89%51.45%50.86%51.01%50.43%49.19%51.25%50.59%51.07%51.88%52.53%
No. of Shareholders59,46760,49462,07860,74259,64158,05853,82354,34952,98153,74356,14258,855

Shareholding Pattern Chart

No. of Shareholders

This stock is not held by any mutual fund

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)20.509.4020.6932.6511.26
Diluted EPS (Rs.)20.509.4020.6932.6511.26
Cash EPS (Rs.)32.9820.6631.1841.9420.55
Book Value[Excl.RevalReserv]/Share (Rs.)187.72170.20163.78146.95116.83
Book Value[Incl.RevalReserv]/Share (Rs.)187.72170.20163.78146.95116.83
Revenue From Operations / Share (Rs.)413.72355.86361.11305.90207.34
PBDIT / Share (Rs.)49.8736.8348.0964.0231.39
PBIT / Share (Rs.)37.4825.9637.7754.2422.07
PBT / Share (Rs.)32.4020.1732.2949.6415.29
Net Profit / Share (Rs.)20.599.7920.8632.1611.24
NP After MI And SOA / Share (Rs.)20.599.7920.8632.1611.24
PBDIT Margin (%)12.0510.3513.3120.9215.13
PBIT Margin (%)9.057.2910.4517.7310.64
PBT Margin (%)7.835.668.9416.227.37
Net Profit Margin (%)4.972.755.7710.515.42
NP After MI And SOA Margin (%)4.972.755.7710.515.42
Return on Networth / Equity (%)10.965.7512.7321.889.62
Return on Capital Employeed (%)14.019.8815.2024.7212.68
Return On Assets (%)6.052.916.4111.194.40
Long Term Debt / Equity (X)0.170.260.370.350.31
Total Debt / Equity (X)0.250.370.420.400.54
Asset Turnover Ratio (%)1.221.081.181.130.83
Current Ratio (X)1.341.281.211.110.94
Quick Ratio (X)0.800.830.830.760.64
Inventory Turnover Ratio (X)3.171.642.161.911.52
Dividend Payout Ratio (NP) (%)0.0030.6419.177.7742.90
Dividend Payout Ratio (CP) (%)0.0014.5212.825.9623.46
Earning Retention Ratio (%)0.0069.3680.8392.2357.10
Cash Earning Retention Ratio (%)0.0085.4887.1894.0476.54
Interest Coverage Ratio (X)9.836.368.9913.924.63
Interest Coverage Ratio (Post Tax) (X)5.062.694.927.992.66
Enterprise Value (Cr.)998.621057.691111.76971.27512.85
EV / Net Operating Revenue (X)0.530.650.680.700.54
EV / EBITDA (X)4.436.355.113.353.61
MarketCap / Net Operating Revenue (X)0.440.500.490.560.26
Retention Ratios (%)0.0069.3580.8292.2257.09
Price / BV (X)0.981.051.091.170.46
Price / Net Operating Revenue (X)0.440.500.490.560.26
EarningsYield0.110.050.110.180.20

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of NCL Industries Ltd as of November 14, 2024 is: 284.61

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of November 14, 2024, NCL Industries Ltd is Undervalued by 40.20% compared to the current share price 203.00

Intrinsic Value of NCL Industries Ltd as of November 14, 2024 is: 241.14

Calculation basis:

  • Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of November 14, 2024, NCL Industries Ltd is Undervalued by 18.79% compared to the current share price 203.00

Last 5 Year EPS CAGR: -15.28%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a low average Working Capital Days of 7.33, which is a positive sign.
  2. The company has higher reserves (441.77 cr) compared to borrowings (272.46 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (459.77 cr) and profit (78.54 cr) over the years.
  1. The stock has a low average ROCE of 14.83%, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 114.58, which may not be favorable.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in NCL Industries Ltd:
    1. Net Profit Margin: 4.97%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 14.01% (Industry Average ROCE: 11.13%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: 10.96% (Industry Average ROE: 16.1%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 5.06
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 0.8
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. Stock P/E: 13 (Industry average Stock P/E: 33.66)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. Total Debt / Equity: 0.25
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company - Qualitative Analysis

NCL Industries Ltd. is a Public Limited Listed company incorporated on 10/09/1979 and has its registered office in the State of Andhra Pradesh, India. Company’s Corporate Identification Number(CIN) is L33130TG1979PLC002521 and registration number is 002521. Currently Company is involved in the business activities of Manufacture of portland cement, aluminous cement, slag cement and similar hydraulic cement. Company’s Total Operating Revenue is Rs. 1633.41 Cr. and Equity Capital is Rs. 45.23 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Cement7th Floor, NCL Pearl, Near Rail Nilayam, Secunderabad Telangana 500026ncl@nclind.com
http://www.nclind.com
Management
NamePosition Held
Mr. Kamlesh GandhiChairman
Mr. K RaviExecutive Vice Chairman
Mr. K GautamManaging Director
Mr. N G V S G PrasadExecutive Director & CFO
Mrs. Roopa BhupatirajuExecutive Director
Mr. Utkal GoradiaExecutive Director
Mrs. Pooja KalidindiDirector
Mr. Ashven DatlaDirector
Mr. Penmetsa Narasimha RajuDirector
Mrs. P Sudha ReddyIndependent Director
Dr. R KalidasIndependent Director
Lt. Gen. (Retd.) T A D�unhaIndependent Director

FAQ

What is the latest intrinsic value of NCL Industries Ltd?

The latest intrinsic value of NCL Industries Ltd as on 14 November 2024 is ₹284.61, which is 40.20% higher than the current market price of ₹203.00.

What is the Market Cap of NCL Industries Ltd?

The Market Cap of NCL Industries Ltd is 918 Cr..

What is the current Stock Price of NCL Industries Ltd as on 14 November 2024?

The current stock price of NCL Industries Ltd as on 14 November 2024 is ₹203.

What is the High / Low of NCL Industries Ltd stocks in FY 2024?

In FY 2024, the High / Low of NCL Industries Ltd stocks is 260/180.

What is the Stock P/E of NCL Industries Ltd?

The Stock P/E of NCL Industries Ltd is 13.0.

What is the Book Value of NCL Industries Ltd?

The Book Value of NCL Industries Ltd is 190.

What is the Dividend Yield of NCL Industries Ltd?

The Dividend Yield of NCL Industries Ltd is 1.97 %.

What is the ROCE of NCL Industries Ltd?

The ROCE of NCL Industries Ltd is 15.8 %.

What is the ROE of NCL Industries Ltd?

The ROE of NCL Industries Ltd is 11.3 %.

What is the Face Value of NCL Industries Ltd?

The Face Value of NCL Industries Ltd is 10.0.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in NCL Industries Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE