NLC India
Stock Snapshot
Price Performance
Vista Outlook
View Technicals Analysis →Basis of our Recommendation
NLC India Limited's recent operational milestones, particularly the commissioning of the 1,980 MW Ghatampur Thermal Power Project, significantly enhance its generation capacity, positioning the company for stable revenue growth. However, the financial headwind from the Rs 1,453.69 crore provisioning for recoverable advances poses a challenge to earnings visibility. Management's strategic pivot towards a diversified energy platform, targeting a balanced 20,130 MW capacity by FY2030 with a focus on renewables, aligns with India's energy transition goals. This diversification is expected to drive long-term growth, although execution risks and rising mining costs may pressure margins. Vista's forecast reflects stable revenue growth, albeit with margin pressures, as the company navigates regulatory landscapes and awaits tariff determinations. The current valuation appears fair, with an expected upside of approximately 8.57%. Over the next 12-24 months, key opportunities include the expansion of renewable capacity and strategic investments in energy storage, while watchpoints include regulatory uncertainties and potential project execution risks
Why We Like This Stock
- Successful commissioning of the Ghatampur Thermal Power Project enhances generation capacity and revenue potential
- Strategic pivot towards a diversified energy platform aligns with national energy goals, targeting significant renewable capacity by FY2030
- Strong institutional backing during recent OFS indicates confidence in the company's growth trajectory
Things To Watch Out For
- Provisioning of Rs 1,453.69 crore for recoverable advances creates uncertainty around future earnings
- Execution risks related to large-scale projects and rising lignite mining costs may pressure margins
- Regulatory uncertainties regarding tariff determinations could impact revenue stability
Key Parameters
Financial Snapshot
| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 13,001 | 15,322 | 17,490 | 18,778 | 21,965 |
| Profit Before Tax (Cr.) | 1,818 | 3,597 | 3,875 | 3,520 | 4,416 |
| PBT Margin | 14.0% | 23.5% | 2215.6% | 18.7% | 20.1% |
| Net Profit (Cr.) | 943 | 2,653 | 3,051 | 2,762 | 3,184 |
| Earnings Per Share | 6.7 | 18.5 | 20.2 | 18.3 | 23.0 |
Analyst Recommendations
| Broker | Recommendation | Target Price | Date |
|---|---|---|---|
| Axis Securities | ▲ Buy | 285 | 29-May-2026 |
Company Overview
Show Company Profile
NLC India Limited engages in the mining and power generation business in India. The company mines for lignite and coal; and generates power through lignite and coal, as well as through thermal, solar, and wind power plants. It also operates open cast lignite mines with a mining capacity of 28.0 million tonnes per annum (MTPA) in Tamil Nadu and 30.10 MTPA in Rajasthan; and has total coal mining capacity of 20.00 MTPA. In addition, it provides consultancy services to the mining sector and firms in the solar power generation sector. Further, the company has a total installed thermal power generation capacity of 5,300 MW; and renewable energy generation capacity of 1,483.89 MW. It serves state distribution firms, commercial enterprises, and industrial consumers. The company was formerly known as Neyveli Lignite Corporation Limited and changed its name to NLC India Limited in April 2016. The company was incorporated in 1956 and is based in Cuddalore, India.