The stock is trading at P/E & P/BV multiple of 9.58 times & 0.63 times, which is lower than historical averages.
NLC India Limited is the navratna public sector unit. It is presently operating lignite mines with a total installed capacity of 30.60 MTPA and considering the other Projects under formulation/implementation, the total lignite mining capacity will be increased to 62.15 MTPA by the year 2025. The Company has added 500 MW Thermal Power and 17.5 MW Renewable Power during 2020-21 and retired 350 MW (of TPS I) of its installed capacity. With this addition and retirement, the total installed capacity has become 6061.06 MW.
Valuation & View:
At the current price of Rs. 67, the stock is trading at P/E & P/BV multiple of 9.58 times & 0.63 times, which is lower than historical averages. We expect a target price of Rs 95 within 12 months perspective.
Globe Capital Market Limited (“GCML”) is a Stock Broker registered with BSE, NSE and MSEI in all the major segments viz. Capital, F & O and CDS segments. GCML is also a Depository Participant and registered with both the Depositories viz. CDSL and NSDL. Further, GCML is a SEBI registered Portfolio Manager. GCML includes subsidiaries, group and associate companies, promoters, directors, employees and affiliates.
Globe Commodities Limited, Globe Derivatives and Securities Limited & Globe Fincap Limited are subsidiaries of GCML. Rolex Finvest Private Limited, A to Z Consultants Private Limited, A to Z Venture Capital Limited, M. Agarwal Stock Brokers Private Limited, A M Share Brokers Private Limited, Shri Adinath Advertising Company Pvt. Ltd., Orient Land base Private Limited, Bolt Synthetic Private Limited, Price ponder Private Limited and Lakshya Impex Private Limited are associates of GCML. Globe Comex International DMCC is step down subsidiary of GCML.
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