NLC India Ltd
NLC India is engaged in the business of mining of lignite and generation of power by using lignite as well as Renewable Energy Sources. The company operates 3 opencast lignite Mines at Neyveli, Tamil Nadu, and 1 opencast lignite Mine at Barsingsar, Rajasthan with a total mining capacity of 30.1 MTPA, it is also operates an open cast coal mine at Talabira in Odisha with an installed capacity of 20 MTPA. The capacity utilization of lignite mines was 87% in FY24 vs 82% in FY22.
Shareholding Pattern
Financial Summary
| Particulars | March 2022 | March 2023 | March 2024 |
| Sales | 12,070 | 16,165 | 12,999 |
| Sales Growth % | 21.48% | 33.92% | -19.59% |
| Expenses | 8,119 | 10,425 | 9,575 |
| Operating Profit | 3,951 | 5,740 | 3,424 |
| OPM % | 33% | 36% | 26% |
| Net Profit | 1,116 | 1,426 | 1,868 |
| EPS in Rs | 7.88 | 10.07 | 13.37 |
Synopsis of Financials
- Revenue from Operations: ₹7,033.32 Crore, up 12% YoY.
- Total Income: ₹8,010 Crore, up 20% YoY.
- Profit After Tax (PAT): ₹1,549 Crore, up 3% YoY.
- Market Price per share increased to ₹282.50 as of September 30, 2024, from ₹134.95 a year ago (109% growth).
Final Outlook
Company profit after tax is increases by 31.03% from the year 2023, currently the P/E of the share is 17, which shows that the share is undervalued . ROCE of the company is 6.54% which is at a very lower side and also lower from their peers in the market, company ROE is also only 6% which also show poor financials, company is also lagging from their peers in terms of the financials number. Company majorly involved in the mining of the lignite and generate power from this which is not a very good source of power generation and also increase the expenses of the mining . According to me company is showing profit but they are behind from their peers in every parameter so, We recommend to avoid buying the share for now.
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