NTC Industries (526723)

Score breakdown: P/E: 2/3 · ROCE: 0/2 · Growth: 2/2 · Dividend: 0/1

Key Financials

Strengths

• Sales growth of 98.96% and profit growth of 63.25% show powerful near-term momentum
• P/E of 12.49 and PEG of 0.15 suggest the market is underpricing growth
• Piotroski F-Score of 7/9 indicates generally sound financial health
• ROE of 13.17% with a P/B of 1.59 offers a reasonable earnings yield on book value

Concerns

• Price of ₹127.20 is below the 52-week low of ₹138.10, reflecting adverse market sentiment
• Zero dividend yield means no income buffer while waiting for growth
• ROCE of 9.28% is lower than ROE, hinting at potential leverage or weak capital efficiency
• Promoter holding not disclosed, leaving a transparency gap for minority shareholders

AI Analysis

When I look at NTC Industries, I see a small cigarette and tobacco player trading at ₹127.20 with a market cap of just ₹185 Cr. The first thing that catches my eye is growth: sales up nearly 99% and profits up 63%. At a P/E of 12.49, you are paying a modest multiple for that kind of momentum. The PEG ratio of 0.15 screams value if the growth is even half sustainable. Book value is ₹79.78, so price-to-book of 1.59 is not excessive for a company earning 13.17% on equity. The Piotroski F-Score of 7/9 also tells me the balance sheet is reasonably healthy, though I'd like more detail on debt since the data is missing. But Benjamin Graham taught me to be skeptical. The stock is trading below its 52-week low of ₹138.10 — at ₹127.20, the market is clearly losing faith. There is no dividend, so the investor depends entirely on capital appreciation. ROCE at 9.28% is weaker than ROE, which suggests leverage or some inefficiency in capital allocation. With promoter holding undisclosed, I cannot fully assess whether my interests are aligned with management. This is a fast grower in a sin industry, but cigarette demand is resilient in India. At this price, if the earnings growth continues, the margin of safety is interesting. But I would demand evidence that sales growth is coming from volume, not just price hikes or one-off orders. I'd watch the next few quarters closely before committing serious capital.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer