Synopsis:
NCL Industries jumped sharply after announcing a 192% increase in Net Profit from its previous quarter. However, revenue declined on both a quarter and year-on-year basis.
The shares of this cement manufacturer surged by 8 percent on Monday after the company delivered a robust financial performance in this quarter. In this article, we will dive more into the details.
With a market capitalization of Rs 1,014 crore, the shares of NCL Industries Ltd are currently trading at Rs 224 per share, representing a 7 percent decline from its 52-week high of Rs 241.55 per share. Over the past five years, the stock has delivered a positive return of 145 percent.
Q1 Highlights
NCL Industry’s revenue for Q1 FY26 came in at Rs 338 crore, registering a 5 percent decline from Rs 355 crore in the same quarter last year. Additionally, on a sequential basis, revenue declined by 12 percent from Rs 383 crore in Q4 FY25.
Coming to its profitability, the company reported a net profit growth of 59 percent to Rs 20 crore in Q1 FY26 as compared to Rs 12.76 crore in Q1 FY25. Additionally, on a QoQ basis, it increased by 192 percent from Rs 6.93 crore.
During the same period, the Cement Division brought in revenue of Rs 405.35 crore, showing a modest increase of 0.35 percent compared to Rs 403.94 crore in the same quarter last year. Meanwhile, the Boards Division took a hit, dropping to Rs 32.29 crore, which is a significant decline of 35 percent from Rs 49.60 crore.
The Ready Mix Concrete Division also faced a downturn, falling 11.3 percent to Rs 34.43 crore from Rs 38.81 crore. However, the Doors Division experienced the steepest drop, plummeting 68.4 percent to just Rs 3.60 crore, down from Rs 11.38 crore.
The stock delivered a poor ROE and ROCE of 3.64 percent and 6.81 percent respectively, and is currently trading at a P/E of 26.38x as compared to its industry average of 45x.
NCL Industries Limited crafts and sells building materials across India, and they do it through five key segments: Cement, Boards, Hydel Power, Ready Mix Concrete, and Readymade Doors. Their Nagarjuna brand is well-known for offering a variety of cement types that cater to housing, infrastructure, and irrigation projects.
When it comes to ready-mixed concrete, they market it under the name Nagarjuna RMC, while their cement-bonded boards are branded as Bison Panel. And if you’re in the market for doors, you can find their ready-made options under the NCLdoor label.
Written by Satyajeet Mukherjee
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