NCL Industries Ltd., incorporated in the year 1979, is a Small Cap company (having a market cap of Rs 961.20 Crore) operating in Cement sector.
Financials
For the quarter ended 31-03-2021, the company reported a Consolidated Total Income of Rs 409.72 Crore, up 10.46 % from last quarter Total Income of Rs 370.92 Crore and up 64.45 % from last year same quarter Total Income of Rs 249.14 Crore. Company reported net profit after tax of Rs 29.01 Crore in latest quarter.
Investment Rationale
With targeted sales volume of ~2.6 MT, the brokerage expects growth to normalise to 8.2% in FY22E after stellar performance. It also expects RoCE to come down by 290 bps due to capex. Further, it awaits further clarity on the growth prospects of its door business division. With a positive sector outlook, the brokerage changes rating on the stock from REDUCE to HOLD with a revised TP of Rs 240/share (at 6.5x FY23E EPS, implied EV/tonne of $75/tonne).
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