Navratna PSU engaged in the mining of coal and lignite and generation of Power, jumped 5 percent in the day’s trade upon emerging as the successful bidder for Machhakata Coal Mine in Angul District of Odisha 

Price Action 

With a market capitalization of Rs. 37,842 Crores, the shares of NLC India Limited were trading at Rs. 272.90 per equity share, up 4.34 percent from its previous day’s close price of Rs. 261.55. It has delivered multibagger returns of 150 percent in a year. 

What Happened 

NLC India Limited has announced that it has emerged as the successful bidder for Machhakata Coal Mine in Angul District of Odisha through the commercial coal block E-auction held by the Ministry of Coal on February 2, 2024. 

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This is the second commercial coal mine block for NLC India Limited and it is committed towards its capacity addition in line with the Corporate Plan. The Coal Mine Block has a total coal reserve of ~1377 Million Tonnes with a peak-rated capacity of 30 Million Tonnes Per Annum. 

About the company 

NLC India Limited is a Navratna mining and power generation company under the Ministry of Coal, it is engaged in the mining of coal and lignite and the generation of Power. It generates thermal power through coal and lignite and renewable energy through solar and wind energy. 

Financials and Ratios 

Its revenue from operations declined by 19.59 percent from Rs. 16,165 Crores in FY23 to Rs. 12,999 Crores in FY24, accompanied by profits of Rs. 1,426 Crores to Rs. 1,868 Crores. 

In terms of Return ratios, it has reported a return on equity (ROE) of 11.7 percent, and a return on capital employed (ROCE) of 9.13 percent. It has reported a debt-to-equity ratio of 1.36. 

Written by: Bharath K.S


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