NSEI:NCLIND

Stock Analysis Report

Executive Summary

NCL Industries Limited manufactures and sells building materials in India.

Snowflake

Fundamentals

Very undervalued with excellent balance sheet.

Share Price & News

How has NCL Industries's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-4.0%

NCLIND

2.8%

IN Basic Materials

2.4%

IN Market


1 Year Return

-23.2%

NCLIND

15.1%

IN Basic Materials

8.0%

IN Market

Return vs Industry: NCLIND underperformed the Indian Basic Materials industry which returned 15.1% over the past year.

Return vs Market: NCLIND underperformed the Indian Market which returned 8% over the past year.


Shareholder returns

NCLINDIndustryMarket
7 Day-4.0%2.8%2.4%
30 Day-23.8%-1.5%2.5%
90 Day-24.0%-6.5%3.6%
1 Year-21.5%-23.2%15.8%15.1%10.3%8.0%
3 Year-34.8%-37.9%-3.1%-4.7%22.3%16.0%
5 Year174.1%156.5%46.1%41.4%42.8%29.3%

Price Volatility Vs. Market

How volatile is NCL Industries's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is NCL Industries undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: NCLIND (₹89.9) is trading below our estimate of fair value (₹498.67)

Significantly Below Fair Value: NCLIND is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: NCLIND is good value based on its PE Ratio (5.8x) compared to the Basic Materials industry average (17.3x).

PE vs Market: NCLIND is good value based on its PE Ratio (5.8x) compared to the Indian market (13x).


Price to Earnings Growth Ratio

PEG Ratio: NCLIND is good value based on its PEG Ratio (0.3x)


Price to Book Ratio

PB vs Industry: NCLIND is good value based on its PB Ratio (0.8x) compared to the IN Basic Materials industry average (1x).


Next Steps

Future Growth

How is NCL Industries forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

19.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NCLIND's forecast earnings growth (19% per year) is above the savings rate (7.6%).

Earnings vs Market: NCLIND's earnings (19% per year) are forecast to grow faster than the Indian market (18.4% per year).

High Growth Earnings: NCLIND's earnings are forecast to grow, but not significantly.

Revenue vs Market: NCLIND's revenue (11.4% per year) is forecast to grow faster than the Indian market (11.3% per year).

High Growth Revenue: NCLIND's revenue (11.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if NCLIND's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has NCL Industries performed over the past 5 years?

27.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: NCLIND has become profitable over the past 5 years, growing earnings by 27.6% per year.

Accelerating Growth: NCLIND's earnings growth over the past year (78.3%) exceeds its 5-year average (27.6% per year).

Earnings vs Industry: NCLIND earnings growth over the past year (78.3%) exceeded the Basic Materials industry 13.1%.


Return on Equity

High ROE: NCLIND's Return on Equity (13.9%) is considered low.


Return on Assets

ROA vs Industry: NCLIND has a higher Return on Assets than the Basic Materials industry average last year.


Return on Capital Employed

ROCE Improving: NCLIND's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is NCL Industries's financial position?


Financial Position Analysis

Short Term Liabilities: NCLIND's short term assets (₹3.3B) exceeds its short term liabilities (₹3.3B)

Long Term Liabilities: NCLIND's short term assets (3.3B) exceeds its long term liabilities (2.7B)


Debt to Equity History and Analysis

Debt Level: NCLIND's debt to equity ratio (53.3%) is considered high

Reducing Debt: NCLIND's debt to equity ratio has reduced from 140.7% to 53.3% over the past 5 years.

Debt Coverage: NCLIND's debt is well covered by operating cash flow (26.6%).

Interest Coverage: NCLIND's interest payments on its debt are well covered by EBIT (3.8x coverage).


Balance Sheet

Inventory Level: NCLIND has a high level of physical assets or inventory.

Debt Coverage by Assets: NCLIND's debt is covered by short term assets (assets are 1.2x debt).


Next Steps

Dividend

What is NCL Industries's current dividend yield, its reliability and sustainability?

2.78%

Current Dividend Yield


Dividend Yield vs Market

company2.8%marketbottom25%0.6%markettop25%2.4%industryaverage0.6%forecastin3Years2.6%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: NCLIND's dividend (2.78%) is higher than the bottom 25% of dividend payers in the Indian market (0.6%).

High Dividend: NCLIND's dividend (2.78%) is in the top 25% of dividend payers in the Indian market (2.41%)

Stable Dividend: NCLIND's dividend payments have been volatile in the past 10 years.

Growing Dividend: NCLIND's dividend payments have not increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (16.3%), NCLIND's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

What is the CEO of NCL Industries's salary, the management and board of directors tenure and is there insider trading?

10.2yrs

Average management tenure


CEO

Ravi Kalidindi (65yo)

16.8yrs

Tenure

₹30,301,000

Compensation

Mr. Ravi Kalidindi, Diploma (Electrical Engineering) has been the Managing Director of NCL Industries Limited since January 11, 2003 and served as its Managing Director since January 2008 until 2011. Mr. K ...


CEO Compensation Analysis

Compensation vs. Market: Ravi's total compensation ($USD427.89K) is above average for companies of similar size in the Indian market ($USD33.85K).

Compensation vs Earnings: Ravi's compensation has been consistent with company performance over the past year.


Management Age and Tenure

10.2yrs

Average Tenure

53yo

Average Age

Experienced Management: NCLIND's management team is seasoned and experienced (10.2 years average tenure).


Board Age and Tenure

4.8yrs

Average Tenure

68.5yo

Average Age

Experienced Board: NCLIND's board of directors are considered experienced (4.8 years average tenure).


Insider Trading

Insider Buying: NCLIND insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Buy₹197,78429 Aug 19
Ravi Kalidindi
EntityIndividual
Role
Chief Executive Officer
MD & Director
Shares1,800
Max Price₹109.88
Buy₹211,50023 Aug 19
Ravi Kalidindi
EntityIndividual
Role
Chief Executive Officer
MD & Director
Shares2,000
Max Price₹105.75
Buy₹150,80024 Jun 19
Ravi Kalidindi
EntityIndividual
Role
Chief Executive Officer
MD & Director
Shares1,160
Max Price₹130.00
Sell₹371,52018 Jun 19
NCL Holdings (A&S) Limited
EntityCompany
Shares2,700
Max Price₹137.60
Buy₹371,52018 Jun 19
Vinodrai Goradia
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares2,700
Max Price₹137.60
Buy₹2,034,99914 Jun 19
NCL Holdings (A&S) Limited
EntityCompany
Shares14,800
Max Price₹137.50
Buy₹2,034,99914 Jun 19
Vinodrai Goradia
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares14,800
Max Price₹137.50
Sell₹26,042,21113 Jun 19
NCL Holdings (A&S) Limited
EntityCompany
Shares185,671
Max Price₹140.26
Buy₹12,291,15013 Jun 19
K. Pooja
EntityIndividual
Shares87,600
Max Price₹140.31
Buy₹12,290,27513 Jun 19
Gautam Kalidindi
EntityIndividual
Role
Member of the Board of Directors
Executive Director of Corporate Affairs & Executive Director
Shares87,600
Max Price₹140.30
Sell₹12,672,86211 Jun 19
NCL Holdings (A&S) Limited
EntityCompany
Shares90,800
Max Price₹140.30
Buy₹2,711,85911 Jun 19
Anuradha Kalidindi
EntityIndividual
Shares19,329
Max Price₹140.30
Buy₹488,25010 Jun 19
Meera Goradia
EntityIndividual
Shares3,500
Max Price₹139.50
Buy₹1,974,00010 Jun 19
Kanumilli Sudheer
EntityIndividual
Shares14,000
Max Price₹141.00
Buy₹1,255,50010 Jun 19
Utkal Goradia
EntityIndividual
Shares9,000
Max Price₹139.50
Buy₹1,480,50010 Jun 19
Penmetsa Raju
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares10,500
Max Price₹141.00
Buy₹4,774,23210 Jun 19
Anuradha Kalidindi
EntityIndividual
Shares34,471
Max Price₹138.50
Buy₹16,757,99207 Jun 19
Ashven Datla
EntityIndividual
Shares114,000
Max Price₹147.00
Buy₹793,80007 Jun 19
Penmetsa Raju
EntityIndividual
Shares5,400
Max Price₹147.00
Buy₹882,00007 Jun 19
Madhavi Penumasta
EntityIndividual
Shares6,000
Max Price₹147.00
Buy₹19,256,99107 Jun 19
Ravi Kalidindi
EntityIndividual
Role
Chief Executive Officer
MD & Director
Shares131,000
Max Price₹147.00
Buy₹135,41515 May 19
Penmetcha Raju
EntityIndividual
Shares997
Max Price₹135.82
Sell₹752,55015 Apr 19
S. Gokul
EntityIndividual
Shares5,000
Max Price₹150.51
Buy₹491,26226 Feb 19
Madhavi Penumasta
EntityIndividual
Shares4,100
Max Price₹119.82
Buy₹105,00019 Feb 19
Madhu Kalidindi
EntityIndividual
Shares1,000
Max Price₹105.00
Buy₹105,35019 Feb 19
Anuradha Kalidindi
EntityIndividual
Shares1,000
Max Price₹105.35
Buy₹65,03423 Nov 18
Bimal Goradia
EntityIndividual
Shares500
Max Price₹130.07
Buy₹992,64030 Oct 18
Ravi Kalidindi
EntityIndividual
Role
Chief Executive Officer
MD & Director
Shares8,495
Max Price₹116.85

Ownership Breakdown


Management Team

  • Ravi Kalidindi (65yo)

    MD & Director

    • Tenure: 16.8yrs
    • Compensation: ₹30.30m
  • T. Kumar (56yo)

    Company Secretary & Compliance Officer

    • Tenure: 12.3yrs
    • Compensation: ₹1.20m
  • Gnana Venkata Satya Gurunadha Prasad (53yo)

    CFO, President & Executive Director

    • Tenure: 3.4yrs
    • Compensation: ₹4.29m
  • Gautam Kalidindi (38yo)

    Executive Director of Corporate Affairs & Executive Director

    • Tenure: 10.2yrs
    • Compensation: ₹7.17m
  • Roopa Kalidindi (41yo)

    Executive Director

    • Tenure: 5.4yrs
    • Compensation: ₹79.90k
  • Ashwin Goradia

    Assistant General Manager of Marketing

    • Tenure: 7.5yrs
  • K. V. R. R. Varma (51yo)

    Senior Vice President of Cement Marketing

    • Tenure: 0yrs
  • S. Narayanan (60yo)

    President of Projects

    • Tenure: 0yrs
  • M. Sharma (53yo)

    General Manager of Accounts

    • Tenure: 0yrs
  • RaviChandra Pingali (44yo)

    Assistant General Manager of IT

    • Tenure: 0yrs

Board Members

  • Kamlesh Gandhi (69yo)

    Independent Non-Executive Director

    • Tenure: 11.3yrs
    • Compensation: ₹409.45k
  • Ravi Kalidindi (65yo)

    MD & Director

    • Tenure: 16.8yrs
    • Compensation: ₹30.30m
  • Penmetsa Raju (68yo)

    Non-Executive Director

    • Tenure: 4.3yrs
    • Compensation: ₹234.70k
  • Vinodrai Goradia (82yo)

    Non-Executive Director

    • Tenure: 29.1yrs
    • Compensation: ₹240.34k
  • Gnana Venkata Satya Gurunadha Prasad (53yo)

    CFO, President & Executive Director

    • Tenure: 3.4yrs
    • Compensation: ₹4.29m
  • Gautam Kalidindi (38yo)

    Executive Director of Corporate Affairs & Executive Director

    • Tenure: 10.2yrs
    • Compensation: ₹7.17m
  • Roopa Kalidindi (41yo)

    Executive Director

    • Tenure: 5.4yrs
    • Compensation: ₹79.90k
  • Trevor D'cunha (73yo)

    Independent Non-Executive Director

    • Tenure: 4.2yrs
    • Compensation: ₹244.70k
  • Raghavapudi Kalidas (73yo)

    Independent Non-Executive Director

    • Tenure: 4.2yrs
    • Compensation: ₹299.60k
  • Vuppalapati Raju (78yo)

    Independent Director

    • Tenure: 2.9yrs
    • Compensation: ₹409.45k

Company Information

NCL Industries Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: NCL Industries Limited
  • Ticker: NCLIND
  • Exchange: NSEI
  • Founded: 1979
  • Industry: Construction Materials
  • Sector: Materials
  • Market Cap: ₹4.216b
  • Shares outstanding: 45.23m
  • Website: https://www.nclind.com

Number of Employees


Location

  • NCL Industries Limited
  • 10-3-162, NCL PEARL
  • 7th floor
  • Secunderabad
  • Andhra Pradesh
  • 500026
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
502168BSE (Mumbai Stock Exchange)YesEquity SharesININRDec 2001
NCLINDNSEI (National Stock Exchange of India)YesEquity SharesININRDec 2001

Biography

NCL Industries Limited manufactures and sells building materials in India. It operates through five segments: Cement, Boards, Ready Mix Concrete, Energy, and Prefab. It offers cement, including ordinary Po ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/23 12:46
End of Day Share Price2019/10/23 00:00
Earnings2019/06/30
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.