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Last Updated on: 23 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo

NLC India Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 22, 2024, 9:50 pm

Market Cap 36,225 Cr.
Current Price 261
High / Low312/160
Stock P/E19.7
Book Value 128
Dividend Yield1.15 %
ROCE6.54 %
ROE6.79 %
Face Value 10.0
PEG Ratio1.61

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

View Share Price Target for NLC India Ltd

Competitors of NLC India Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
IND Renewable Energy Ltd 16.5 Cr. 11.926.8/11.2551 18.70.00 %0.07 %0.34 % 10.0
GMR Power & Urban Infra Ltd 7,141 Cr. 99.8169/38.6 11.10.00 %11.4 %% 5.00
Gita Renewable Energy Ltd 63.6 Cr. 155310/107245 32.20.00 %2.71 %1.91 % 10.0
SJVN Ltd 42,248 Cr. 108170/80.245.7 37.21.67 %4.99 %5.90 % 10.0
Rattanindia Power Ltd 6,713 Cr. 12.521.1/7.90 8.300.00 %8.39 %% 10.0
Industry Average62,813.00 Cr239.7383.4197.230.78%8.58%10.68%8.22

All Competitor Stocks of NLC India Ltd

Quarterly Result

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales2,2152,8403,0363,0942,7323,0863,8633,4893,6795,1343,3162,9783,164
Expenses1,7381,9942,0601,8801,8282,0182,4552,3103,9573,8982,1232,1432,260
Operating Profit4778459771,2139041,0681,4081,179-2781,2361,194835905
OPM %22%30%32%39%33%35%36%34%-8%24%36%28%29%
Other Income5121,0162847771011711032073007131121,535149
Interest315306268269232215221337232221231214205
Depreciation385440429423438618436434460472461455446
Profit before tax2881,1145631,298335407854616-6701,2566141,701402
Tax %36%35%37%85%31%19%33%32%41%33%33%36%37%
Net Profit183726358197230331569417-3968374141,086254
EPS in Rs1.235.202.511.341.672.374.052.96-2.935.982.927.821.81

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales4,9125,5805,9456,0757,82811,09411,2899,87110,3259,93612,07016,16514,592
Expenses3,2603,5884,0134,5355,3345,9987,4017,6146,9047,3208,11910,45210,423
Operating Profit1,6521,9921,9321,5402,4945,0973,8872,2573,4202,6163,9515,7144,169
OPM %34%36%32%25%32%46%34%23%33%26%33%35%29%
Other Income9187609761,434-412-1,1767132,1251,4332,5311,544-8452,509
Interest1501931821504675885487001,1741,3139841,012871
Depreciation4365125174419101,0441,2321,1211,3341,6111,9091,8011,834
Profit before tax1,9842,0462,2092,3837052,2892,8212,5612,3452,2232,6032,0563,973
Tax %29%29%32%34%90%-7%31%40%38%41%57%31%
Net Profit1,4111,4581,5021,580682,4571,9571,5371,4531,3141,1161,4262,590
EPS in Rs8.418.698.959.420.5116.0112.7110.8710.399.247.8810.0718.53
Dividend Payout %33%32%31%30%588%46%35%42%68%27%19%35%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2012-20132013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)3.33%3.02%5.19%-95.70%3513.24%-20.35%-21.46%-5.47%-9.57%-15.07%27.78%
Change in YoY Net Profit Growth (%)0.00%-0.31%2.18%-100.89%3608.93%-3533.59%-1.11%16.00%-4.10%-5.50%42.85%

NLC India Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2012-2013 to 2022-2023.

Growth

Compounded Sales Growth
10 Years:8%
5 Years:6%
3 Years:9%
TTM:-9%
Compounded Profit Growth
10 Years:-3%
5 Years:-7%
3 Years:-2%
TTM:-5%
Stock Price CAGR
10 Years:12%
5 Years:36%
3 Years:59%
1 Year:60%
Return on Equity
10 Years:11%
5 Years:10%
3 Years:9%
Last Year:7%

Last Updated: Unknown

Balance Sheet

Last Updated: November 14, 2024, 7:58 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital1,6781,6781,6781,6781,5291,5291,3871,3871,3871,3871,3871,3871,387
Reserves11,27212,22513,19811,10410,59811,82311,38311,51812,09812,80313,78215,14416,384
Borrowings6,4146,5876,6018,42311,47913,21520,59827,23027,23422,08622,33322,41522,521
Other Liabilities3,8594,2264,2798,4889,88811,88011,91712,49312,59413,54215,60516,04315,961
Total Liabilities23,22324,71625,75629,69333,49338,44845,28552,62853,31349,81853,10754,98956,254
Fixed Assets6,7036,5486,65516,32715,99716,76517,65824,10925,82424,87524,05823,39122,746
CWIP7,7319,37210,9852,5425,2198,39713,85612,66211,59713,02214,63617,72620,794
Investments3102061031313131314147888
Other Assets8,4808,5908,01410,81212,26513,27313,75915,84415,87911,91414,40513,86412,706
Total Assets23,22324,71625,75629,69333,49338,44845,28552,62853,31349,81853,10754,98956,254

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +1,2073,7371,0361,3011,2254,5331,6201,6474,3907,7464,1715,624
Cash from Investing Activity +-1,108-1,393-502-1,380-4,332-4,593-6,119-5,812-2,212-763-2,499-3,151
Cash from Financing Activity +-569-946-1,23163-68984,4164,163-2,037-7,001-1,735-1,985
Net Cash Flow-4711,398-696-16-3,17439-83-2140-18-62487

Free Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow1.00-5.00-5.00-5.00-6.00-6.00-10.00-18.00-24.00-25.00-19.00-17.00

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 Days24913513717415814722930127611296106
Inventory Days
Days Payable
Cash Conversion Cycle24913513717415814722930127611296106
Working Capital Days1754682104173139132198295128142105
ROCE %11%12%10%10%21%13%11%9%8%8%13%7%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters79.20%79.20%79.20%79.20%79.20%79.20%79.20%79.20%79.20%79.20%72.20%72.20%
FIIs0.56%0.62%1.05%1.21%1.16%0.83%0.67%0.81%0.95%1.21%2.39%2.18%
DIIs6.57%6.16%5.71%5.49%5.33%5.88%6.89%8.02%9.18%8.85%13.38%13.82%
Government4.31%4.31%4.31%4.31%4.31%4.31%4.31%4.31%4.31%4.31%4.31%4.31%
Public9.37%9.71%9.74%9.79%10.02%9.79%8.94%7.66%6.37%6.44%7.73%7.48%
No. of Shareholders1,74,6332,01,6281,94,1111,99,7661,92,4261,86,3441,82,4501,68,9391,69,6001,90,1642,58,4982,86,701

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
Nippon India Small Cap Fund16,251,7510.67276.852,470,7012024-11-21557.78%
Nippon India CPSE ETF14,558,6260.9248.012,470,7012024-11-21489.25%
Nippon India Growth Fund5,931,1290.47101.042,470,7012024-11-21140.06%
Nippon India ELSS Tax Saver Fund5,363,0740.791.362,470,7012024-11-21117.07%
Nippon India Power & Infra Fund5,000,0002.8185.182,470,7012024-11-21102.37%
Nippon India Value Fund3,349,6630.9257.062,470,7012024-11-2135.58%
Mahindra Manulife Small Cap Fund2,935,5731.9650.012,470,7012024-11-2118.82%
Aditya Birla Sun Life Pure Value Fund2,897,9880.9649.372,470,7012024-11-2117.29%
ICICI Prudential Infrastructure Fund2,841,9801.3148.412,470,7012024-11-2115.03%
ICICI Prudential Bharat 22 ETF2,470,7010.3342.12,470,7012024-11-210%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)13.4710.288.059.7010.48
Diluted EPS (Rs.)13.4710.288.059.7010.48
Cash EPS (Rs.)26.6323.2621.8121.1320.09
Book Value[Excl.RevalReserv]/Share (Rs.)139.66127.11118.09115.37105.81
Book Value[Incl.RevalReserv]/Share (Rs.)139.66127.11118.09115.37105.81
Revenue From Operations / Share (Rs.)93.74116.5886.1671.0174.43
PBDIT / Share (Rs.)32.3350.9134.3334.3234.04
PBIT / Share (Rs.)19.1737.9220.5722.9024.41
PBT / Share (Rs.)20.7814.8218.7716.2616.91
Net Profit / Share (Rs.)13.4710.288.049.7010.47
NP After MI And SOA / Share (Rs.)13.3710.077.889.4710.39
PBDIT Margin (%)34.4843.6739.8448.3345.73
PBIT Margin (%)20.4432.5323.8732.2432.80
PBT Margin (%)22.1612.7121.7822.8922.72
Net Profit Margin (%)14.368.819.3313.6614.07
NP After MI And SOA Margin (%)14.268.639.1413.3313.96
Return on Networth / Equity (%)11.219.207.709.3111.16
Return on Capital Employeed (%)6.0412.566.988.098.94
Return On Assets (%)3.372.622.192.432.69
Long Term Debt / Equity (X)1.161.221.331.341.47
Total Debt / Equity (X)1.351.471.551.791.93
Asset Turnover Ratio (%)0.240.310.220.150.18
Current Ratio (X)1.011.031.191.010.94
Quick Ratio (X)0.870.921.060.890.83
Dividend Payout Ratio (NP) (%)26.1729.8041.8211.1067.91
Dividend Payout Ratio (CP) (%)13.1913.0115.225.0335.27
Earning Retention Ratio (%)73.8370.2058.1888.9032.09
Cash Earning Retention Ratio (%)86.8186.9984.7894.9764.73
Interest Coverage Ratio (X)5.286.984.843.634.02
Interest Coverage Ratio (Post Tax) (X)1.944.571.391.732.12
Enterprise Value (Cr.)56091.3635214.5632147.8933325.4932400.47
EV / Net Operating Revenue (X)4.322.182.693.383.14
EV / EBITDA (X)12.514.996.757.006.87
MarketCap / Net Operating Revenue (X)2.430.660.720.710.59
Retention Ratios (%)73.8270.1958.1788.8932.08
Price / BV (X)1.910.700.610.490.47
Price / Net Operating Revenue (X)2.430.660.720.710.59
EarningsYield0.050.130.120.180.23

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of NLC India Ltd as of November 23, 2024 is: 173.19

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 23, 2024, NLC India Ltd is Overvalued by 33.64% compared to the current share price 261.00

Intrinsic Value of NLC India Ltd as of November 23, 2024 is: 194.44

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 23, 2024, NLC India Ltd is Overvalued by 25.50% compared to the current share price 261.00

Last 5 Year EPS CAGR: 12.27%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The company has shown consistent growth in sales (9.15 cr) and profit (56.08 cr) over the years.
  1. The stock has a low average ROCE of 11.08%, which may not be favorable.
  2. The stock has a high average Working Capital Days of 143.25, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 176.67, which may not be favorable.
  4. The company has higher borrowings (16,702.77) compared to reserves (12,564.00), which may suggest financial risk.

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 NLC India Ltd:
    1. Net Profit Margin: 14.36%
      • 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: 6.04% (Industry Average ROCE: 8.58%)
      • 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%: 11.21% (Industry Average ROE: 10.68%)
      • 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): 1.94
      • 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: 0.87
      • 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: 19.7 (Industry average Stock P/E: 83.41)
      • 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: 1.35
      • 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

NLC India Ltd. is a Public Limited Listed company incorporated on 14/11/1956 and has its registered office in the State of Tamil Nadu, India. Company’s Corporate Identification Number(CIN) is L93090TN1956GOI003507 and registration number is 003507. Currently Company is involved in the business activities of Electric power generation by coal based thermal power plants. Company’s Total Operating Revenue is Rs. 9856.48 Cr. and Equity Capital is Rs. 1386.64 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Power - Generation/DistributionNo. 135, EVR Periyar High Road, Chennai (Madras) Tamil Nadu 600010investors@nlcindia.in
http://www.nlcindia.in
Management
NamePosition Held
Mr. Prasanna Kumar MotupalliChairman & Managing Director
Dr. Prasanna Kumar AcharyaDirector - Finance & CFO
Mr. Samir SwarupDirector - Human Resources
Mr. M VenkatachalamDirector - Power
Mr. Suresh Chandra SumanDirector
Mr. Subrata ChaudhuriIndependent Director
Mr. Prakash MishraIndependent Director
Prof. Nivedita SrivastavaIndependent Director
Mrs. Vismita TejGovernment Nominee Director
Dr. Beela RajeshGovernment Nominee Director

FAQ

What is the latest intrinsic value of NLC India Ltd?

The latest intrinsic value of NLC India Ltd as on 22 November 2024 is ₹173.19, which is 33.64% lower than the current market price of ₹261.00.

What is the Market Cap of NLC India Ltd?

The Market Cap of NLC India Ltd is 36,225 Cr..

What is the current Stock Price of NLC India Ltd as on 22 November 2024?

The current stock price of NLC India Ltd as on 22 November 2024 is 261.

What is the High / Low of NLC India Ltd stocks in FY 2024?

In FY 2024, the High / Low of NLC India Ltd stocks is 312/160.

What is the Stock P/E of NLC India Ltd?

The Stock P/E of NLC India Ltd is 19.7.

What is the Book Value of NLC India Ltd?

The Book Value of NLC India Ltd is 128.

What is the Dividend Yield of NLC India Ltd?

The Dividend Yield of NLC India Ltd is 1.15 %.

What is the ROCE of NLC India Ltd?

The ROCE of NLC India Ltd is 6.54 %.

What is the ROE of NLC India Ltd?

The ROE of NLC India Ltd is 6.79 %.

What is the Face Value of NLC India Ltd?

The Face Value of NLC India 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 NLC India 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