The shares of Navratna Company, specializing in the business of mining of lignite and generation of power by using lignite as well as Renewable Energy Sources, jumped upto 4 percent upon signing the Power Purchase Agreement with Rajya Vidyut Utpadan Nigam Limited (RVUNL).
With a market capitalization of Rs. 31,157.72 crores on Wednesday, the shares of NLC India Limited jumped upto 3.58 percent, making a high of Rs. 225.55 per share compared to its previous closing price of Rs. 217.75 per share.
NLC India Renewables Limited (NIRL), a wholly owned subsidiary of NLC India Limited, signed a Power Purchase Agreement (PPA) with Rajasthan Rajya Vidyut Utpadan Nigam Limited (RVUNL) for an 810 MW solar power project at Pugal Solar Park, Rajasthan.
This is NIRL’s largest solar project to date and will be developed under the MNRE’s Ultra Mega Renewable Energy Power Park Scheme. Expected to generate around 2 billion units of green electricity annually, the project will help offset about 1.5 million metric tons of CO₂ emissions each year. The initiative supports India’s goal of reaching 500 GW of renewable energy capacity by 2030.
Along with it , NLC India Limited (NLCIL) has also signed an MoU with IREL (India) Limited to jointly explore and develop critical minerals and rare earth elements (REE). The collaboration will focus on acquiring and processing assets both in India and abroad, aligning with the Government of India’s push for securing strategic mineral resources.
Chairman and Managing Director, NLC India Ltd, Shri Prasanna Kumar Motupalli, stated: “This 810 MW project is a jewel in the crown of NLCIL ‘s renewable portfolio. The signing of the PPA marks a pivotal moment for NLCIL and reaffirms our commitment to clean and sustainable energy. This 810 MW project is not just our largest solar initiative, but also a symbol of our resolve to lead India’s green energy future. We are proud to collaborate with RVUNL and the State of Rajasthan in this transformative effort.”
Financials & others
The company’s revenue rose by 50.7 percent from Rs. 3,249.39 crore to Rs. 4,897.88 crore in Q3FY24-25. Meanwhile, Net profit rose from Rs. 250.42 crore to Rs. 668.09 crore during the same period.
The company has a strong promoter holding of over 65 percent and has delivered an average net profit growth of 18.75 percent over the last three years. Its P/E ratio stands at 13.4, which is significantly lower than the industry average of 43.92, indicating potential undervaluation.
NLC India Limited (NLCIL), established in 1956, is a Navratna public sector enterprise under the Ministry of Coal, Government of India. Headquartered in Neyveli, Tamil Nadu, it is a pioneer in lignite mining and power generation. The company operates multiple opencast lignite mines and thermal power stations across India, with a significant presence in Tamil Nadu, Rajasthan, Odisha, and Uttar Pradesh.
NLC India Limited (NLCIL) currently has a renewable energy capacity of approximately 1.43 GW, comprising 1,380 MW of solar power and 51 MW of wind power. The company plans to increase this capacity to 10.11 GW by 2030.
Written by Sridhar J
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