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.

Risks

  • NCL Industries is covered by less than 3 analysts.

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

11.5%

NSEI:NCLIND

3.3%

IN Basic Materials

1.5%

IN Market


1 Year Return

-21.9%

NSEI:NCLIND

-9.5%

IN Basic Materials

-11.2%

IN Market

NCLIND underperformed the Basic Materials industry which returned -10.2% over the past year.

NCLIND underperformed the Market in India which returned -11.6% over the past year.


Share holder returns

NCLINDIndustryMarket
7 Day11.5%3.3%1.5%
30 Day4.2%-3.5%1.1%
90 Day-11.4%-10.0%-6.7%
1 Year-21.2%-21.9%-9.0%-9.5%-9.5%-11.2%
3 Year3.3%0.5%0.8%-0.9%19.7%13.7%
5 Year254.6%239.2%47.5%42.9%34.6%21.9%

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 based on future cash flows and its price relative to the stock market?

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

NCL Industries's share price is below the future cash flow value, and at a moderate discount (> 20%).

NCL Industries's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

NCL Industries is good value based on earnings compared to the IN Basic Materials industry average.

NCL Industries is good value based on earnings compared to the India market.


Price Based on Expected Growth

NCL Industries is good value based on expected growth next year.


Price Based on Value of Assets

NCL Industries is good value based on assets compared to the IN Basic Materials industry average.


Next Steps

Future Growth

How is NCL Industries expected 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 Estimates


Future Annual Growth Analysis

NCL Industries's revenue is expected to grow by 11.4% yearly, however this is not considered high growth (20% yearly).

NCL Industries's earnings are expected to grow by 19% yearly, however this is not considered high growth (20% yearly).

NCL Industries's revenue growth is expected to exceed the India market average.

NCL Industries's earnings growth is expected to exceed the India market average.

NCL Industries's earnings growth is expected to exceed the low risk savings rate of 7.6%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if NCL Industries will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


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

NCL Industries has delivered over 20% year on year earnings growth in the past 5 years.

NCL Industries's 1-year earnings growth exceeds its 5-year average (78.3% vs 27.6%)

NCL Industries's earnings growth has exceeded the IN Basic Materials industry average in the past year (78.3% vs 22.4%).


Return on Equity

NCL Industries has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

NCL Industries used its assets more efficiently than the IN Basic Materials industry average last year based on Return on Assets.


Return on Capital Employed

NCL Industries's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is NCL Industries's financial position?


Financial Position Analysis

NCL Industries is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

NCL Industries's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

NCL Industries's level of debt (53.3%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (140.7% vs 53.3% today).

Debt is well covered by operating cash flow (26.6%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 3.8x coverage).


Balance Sheet

High level of physical assets or inventory.

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?

1.91%

Expected Dividend Yield


Upcoming Dividend Payment

Purchase NCL Industries before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield and Payments Analysis

NCL Industries's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.58%).

NCL Industries's dividend is below the markets top 25% of dividend payers in India (2.35%).

Dividends per share have been volatile in the past 10 years (annual drop of over 20%).

No dividend growth in 10 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (6.2x coverage).


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

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

10.1yrs

Average management tenure


CEO

Ravi Kalidindi (65yo)

16.7yrs

Tenure

₹31,287,000

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

Ravi's remuneration is higher than average for companies of similar size in India.

Ravi's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

10.1yrs

Average Tenure

53yo

Average Age

The average tenure for the NCL Industries management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

7.1yrs

Average Tenure

68.5yo

Average Age

The tenure for the NCL Industries board of directors is about average.


Insider Trading

More shares have been bought than sold by NCL Industries individual insiders 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₹4,774,23210 Jun 19
Anuradha Kalidindi
EntityIndividual
Shares34,471
Max Price₹138.50
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₹1,480,50010 Jun 19
Penmetsa Raju
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares10,500
Max Price₹141.00
Buy₹1,255,50010 Jun 19
Utkal Goradia
EntityIndividual
Shares9,000
Max Price₹139.50
Buy₹16,757,99207 Jun 19
Ashven Datla
EntityIndividual
Shares114,000
Max Price₹147.00
Buy₹882,00007 Jun 19
Madhavi Penumasta
EntityIndividual
Shares6,000
Max Price₹147.00
Buy₹793,80007 Jun 19
Penmetsa Raju
EntityIndividual
Shares5,400
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
Role
Member of the Board of Directors
Non-Executive Director
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
Buy₹13,545,73917 Oct 18
K. Pooja
EntityIndividual
Shares104,158
Max Price₹130.05
Buy₹5,015,87317 Oct 18
Anuradha Kalidindi
EntityIndividual
Shares38,580
Max Price₹130.01
Buy₹5,022,98517 Oct 18
Divya Penumacha
EntityIndividual
Shares38,579
Max Price₹130.20
Buy₹8,525,92417 Oct 18
Gautam Kalidindi
EntityIndividual
Role
Member of the Board of Directors
Executive Director of Corporate Affairs & Executive Director
Shares65,579
Max Price₹130.01

Ownership Breakdown


Management Team

  • Ravi Kalidindi (65yo)

    MD & Director

    • Tenure: 16.7yrs
    • Compensation: ₹31.29m
  • T. Kumar (56yo)

    Company Secretary & Compliance Officer

    • Tenure: 12.3yrs
    • Compensation: ₹1.10m
  • Gnana Venkata Satya Gurunadha Prasad (53yo)

    CFO, President & Executive Director

    • Tenure: 3.3yrs
    • Compensation: ₹3.78m
  • Gautam Kalidindi (38yo)

    Executive Director of Corporate Affairs & Executive Director

    • Tenure: 10.1yrs
    • Compensation: ₹6.27m
  • Ashwin Goradia

    Assistant General Manager of Marketing

    • Tenure: 7.4yrs
  • K. V. R. R. Varma (51yo)

    Senior Vice President of Cement Marketing

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

    President of Projects

    • Tenure: 0yrs
  • S. Subramanian (63yo)

    President of Boards

    • 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: ₹460.69k
  • Ravi Kalidindi (65yo)

    MD & Director

    • Tenure: 16.7yrs
    • Compensation: ₹31.29m
  • Penmetsa Raju (68yo)

    Non-Executive Director

    • Tenure: 4.2yrs
    • Compensation: ₹281.23k
  • Vinodrai Goradia (82yo)

    Non-Executive Director

    • Tenure: 29yrs
    • Compensation: ₹240.34k
  • Gnana Venkata Satya Gurunadha Prasad (53yo)

    CFO, President & Executive Director

    • Tenure: 3.3yrs
    • Compensation: ₹3.78m
  • Madhu Kalidindi (63yo)

    Non-Executive Director

    • Tenure: 19.2yrs
    • Compensation: ₹353.01k
  • Gautam Kalidindi (38yo)

    Executive Director of Corporate Affairs & Executive Director

    • Tenure: 10.1yrs
    • Compensation: ₹6.27m
  • Trevor D'cunha (73yo)

    Independent Non-Executive Director

    • Tenure: 4.1yrs
    • Compensation: ₹199.45k
  • Raghavapudi Kalidas (73yo)

    Independent Non-Executive Director

    • Tenure: 4.1yrs
    • Compensation: ₹194.45k
  • Vuppalapati Raju (78yo)

    Independent Director

    • Tenure: 2.8yrs
    • Compensation: ₹527.47k

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: ₹5.455b
  • 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 Analysis2019/09/14 12:56
End of Day Share Price2019/09/13 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.