Buy NCL Industries, target price Rs 242: Anand Rathi

Anand Rathi has buy call on NCL Industries with a target price of Rs 242. The current market price of NCL Industries is Rs 165.05. Time period given by analyst is one year when NCL Industries Ltd. price can reach defined target.

NCL Industries Ltd., incorporated in the year 1979, is a Small Cap company (having a market cap of Rs 747.70 Crore) operating in Cement sector.

NCL Industries Ltd. key Products/Revenue Segments include Cement, Boards, Ready Mix Concrete, Doors and Sale of Energy for the year ending 31-Mar-2021.


Financials
For the quarter ended 31-03-2022, the company reported a Consolidated Total Income of Rs 449.96 Crore, up 20.97 % from last quarter Total Income of Rs 371.96 Crore and up 9.82 % from last year same quarter Total Income of Rs 409.72 Crore. Company reported net profit after tax of Rs 16.27 Crore in latest quarter.

Investment Rationale
Despite volumes dipping across divisions (except energy), NCL’s Q4 revenue was the highest, given a fillip by healthy realisation growth. However, the inflationary situation pummelled operating performance. A pending environmental clearance continues to delay the expansion of the Vishakhapatnam GU. In the prevailing high-cost context, passing on costs will be key to watch. It retains Buy rating, with a lower TP of Rs242 (earlier Rs264).

Promoter/FII Holdings
Promoters held 45.04 per cent stake in the company as of 31-Mar-2022, while FIIs owned 3.0 per cent, DIIs 0.06 per cent.