NLC India is a forerunner in the Indian energy sector for six decades contributing a lion’s share in lignite production and a significant share in thermal power generation.
The company owns India’s largest lignite coalfield and has recently expanded into the renewable energy industry.
According to reports, NLC India Ltd intends to invest Rs 75,000 crore over the next seven years till 2030 in order to accomplish diversification into renewable energy and green hydrogen.
NLC currently operates 1.42 GW of clean energy capacity plants and plans to develop a 6 GW capacity plant by the end of the decade, with a capital expenditure for renewable energy projects of around Rs 23,403 crore ($2.86 billion).
In the fiscal year 2023-24, the company board approved the issuing of Bonds in the form of Debentures up to Rs.5000 Crore in tranches. The funds obtained will be used to increase the renewable assets of the company.
Shares of NLC India were trading at Rs 101 gaining 3 percent on Tuesday’s trading session from the previous close price of Rs 98. The company has a market cap of Rs 14,018 crore.
In the past 3 months, the stock gained 40 percent from Rs 71.90 to current levels and returned 57 percent in the last year.
As per consolidated financials, Operating revenue climbed by 40 percent from Rs 3,679 crore in Q3 to Rs 5,134 crore in Q4. Similarly, net profit improved by 311 percent from a loss of Rs 396 crore to a profit of Rs 836 crore.
The profitability ratios have risen slightly. ROCE is 12.56 and ROE is 9.20 percent for FY 22-23. In contrast, the operating margin is 32.53 percent and the net profit margin is 8.81 percent.
As per the shareholding pattern, promoters of the company hold a 79.2 percent stake and Domestic institutional investors hold an 11.2 percent stake in the company for FY 22-23.
Written by Omkar C
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
