The shares of this Public Sector Enterprise gained up to 12 percent after the company signed an MoU with an investment of over Rs 7,000 crore for adding Thermal and Renewable capacity.
With a market capitalization of Rs 32,065.97 crore, the shares of NLC India Ltd were trading at Rs 231.25 per share, increasing around 6 percent as compared to the previous closing of Rs 218.20 apiece.
As per company filing, NLC India Ltd has signed an MOU with the Government of Rajasthan to form a Joint Venture to set up a 125 MW Lignite Based Power Plant and a 1000 MW Solar Power Plant. The MoU between NLC India Limited and RVUNL includes a staggering investment of over Rs 7,000 crore.
In addition, a letter of intent for the construction of an 810 MW solar power plant has already been granted. This is consistent with NLC India’s business strategy to become a power major with 17 GW capacity and more than 6 GW renewable capacity by 2030.
Furthermore, The MoU exchange signifies the vision of Honorable Prime Minister Shri Narendra Modi ji towards sustainable and robust energy infrastructure, aligning with the Nation’s Ambitious Renewable Energy targets.
Looking into the company’s financial, NLC India Ltd’s revenue decreased by 13 percent from Rs 3,679 crore in Q3FY23 to 3,164 crore in Q3FY24. During the same period, net profits increased by 164 percent from a loss of Rs 396 crore to a profit of Rs 254 crore.
The total India lignite output in 2022-23 is 42.48 million tonnes. NLCIL’s share is 23.53 million tonnes, which is 55.39% more than the 52.32% recorded in FY 2021-22.
Over the past six months, it has returned 62.96 percent, with a multi-bagger return of 194.76% in a year. A shareholder’s investment of Rs. 1 lakh in the firm is worth Rs. 2.94 lakh in a year.
NLC India Limited is an India-based firm that mines lignite and coal generates power utilizing lignite and renewable energy sources, and provides consultancy. The company’s sectors include mining and power generation.
Written by:- Abhishek Singh
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