NLC India (NLCINDIA)

FairStock Score: 50/100 — MIXED

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

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look at NLC India as a mature power generator, not a fast grower. At ₹275.40, the market pays ₹38,188 Cr for a business earning ₹724 Cr in the latest quarter. The P/E of 11.59 and dividend yield of 2.61% are not demanding on the surface, and promoter holding of 72.20% suggests a stable state-linked utility. But Graham would quickly note the price is above his Graham Number of ₹239.18, giving a negative margin of safety of -8.73%. My DCF intrinsic value is only ₹119.84, so the market is pricing in more optimism than the numbers justify. The company has positive free cash flow of ₹1,817 Cr and a Piotroski F-Score of 7/9, which tells me the balance sheet and profitability signals are not deteriorating across the board. ROE of 13.94% and ROCE of 10.51% are respectable but not exceptional for a capital-intensive utility. Debt/equity of 0.82 is manageable, but Altman Z-Score of 1.23 warns of financial stress if cash flows weaken. Growth is the weak spot: sales fell 0.30%, profit fell 12.70%, and the 5-year revenue CAGR is only 8.21%. PEG of 1.76 and EV/EBITDA of 330.21 do not scream bargain. The business may have a regulated-utility moat, but current returns and negative growth do not show a wide economic moat. At best, this is a slow grower with an asset-heavy balance sheet; at worst, a value trap if earnings keep sliding. I would want a wider Margin of Safety before buying, and I would monitor sales/profit recovery, debt levels, FCF, and dividend sustainability.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

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