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NLC India Ltd

NSE: NLCINDIA BSE: 513683

245.90

(-5.09)%

Sun, 01 Feb 2026, 09:01 pm

Analysis

dividend

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Pros

  • Dividends per share have increased over the past 10 years.
  • Dividends paid are well covered by earnings (2.3x coverage).
  • NLC India's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.76%).
  • NLC India's dividend is above the markets top 25% of dividend payers in India (3.08%).
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Cons

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).

health

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Pros

  • NLC India is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • NLC India is profitable, therefore cash runway is not a concern.
  • NLC India is profitable, therefore cash runway is not a concern.
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Cons

  • Debt is not well covered by operating cash flow (6.7%, less than 20% of total debt).
  • Debt is not covered by short term assets, assets are 0.5x debt.
  • NLC India's long term commitments exceed its cash and other short term assets.
  • The level of debt compared to net worth has increased over the past 5 years (44.1% vs 166% today).
  • Interest payments on debt are not well covered by earnings (EBIT is 2.9x annual interest expense, ideally 3x coverage).
  • NLC India's level of debt (166%) compared to net worth is high (greater than 40%).
  • High level of physical assets or inventory.

management

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Pros

  • Rakesh's remuneration is lower than average for companies of similar size in India.
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Cons

  • The average tenure for the NLC India board of directors is less than 3 years, this suggests a new board.
  • Rakesh's compensation has increased by more than 20% in the past year whilst earnings fell less than 20%.

misc

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Pros

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    Cons

    • NLC India is not covered by any analysts.

    past

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    Pros

    • NLC India's year on year earnings growth rate has been positive over the past 5 years, however the most recent earnings are below average.
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    Cons

    • NLC India's 1-year earnings growth is negative, it can't be compared to the 5-year average.
    • NLC India used its assets less efficiently than the IN Renewable Energy industry average last year based on Return on Assets.
    • NLC India's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
    • NLC India has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
    • NLC India's 1-year earnings growth is negative, it can't be compared to the IN Renewable Energy industry average.

    value

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    Pros

    • NLC India's share price is below the future cash flow value, and at a moderate discount (> 20%).
    • NLC India's share price is below the future cash flow value, and at a substantial discount (> 40%).
    • NLC India is good value based on earnings compared to the IN Renewable Energy industry average.
    • NLC India is good value based on earnings compared to the India market.
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    Cons

    • NLC India is overvalued based on assets compared to the IN Renewable Energy industry average.
    • NLCINDIA underperformed the Renewable Energy industry which returned -4.4% over the past year.
    • NLCINDIA underperformed the Market in India which returned -14.5% over the past year.
    • NSEI:NLCINDIA is flat (0.6%) underperforming the Renewable Energy industry which returned 13% over the past month.
    • NSEI:NLCINDIA is flat (0.6%) underperforming the market in India which returned 8% over the past month.

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    Pocketful Fintech Capital Private Limited (CIN U65999DL2021PTC390548) | The SEBI Registration No. allotted to us is INZ000313732. NSE Member Code: 90326 | BSE Member Code: 6808 | MCX Member Code: 57120 DP | CDSL: 12099800