Buy Nlc India, target price Rs 252: IIFL Securities

IIFL Securities has recommended buying NLC India shares due to their positive outlook. The current market price is Rs 242, and the target price has been set at Rs 252. The company is expected to benefit from increased demand for coal and its focus on renewable energy. Investors are advised to accumulate NLC India shares at current levels for potential gains.

About Nlc India:

NLC India Limited (NLC) is a Navratna company under the Ministry of Coal, Government of India, engaged in mining and power generation. The company operates two lignite mines in Neyveli, Tamil Nadu, with a combined annual production capacity of over 30 million tonnes. NLC also operates two thermal power stations with a total installed capacity of 4,170 MW. The majority of the power generated by NLC is sold to the Tamil Nadu Electricity Board.

52 Week Price Trend:

NLC India (NLCINDIA) is currently trading at Rs 242, a significant increase from its 52-week low of Rs 69.7. However, it is still below the 52-week high of Rs 293.75. Despite the recent rise in stock price, NLCINDIA has faced headwinds in the past year due to factors such as rising coal prices and supply chain disruptions. The company's focus on renewable energy and diversification into other sectors could provide long-term growth opportunities. However, the short-term outlook for the stock may be influenced by global economic conditions and the ongoing transition to cleaner energy sources.

Stratzy's MOST Analysis:

NLCINDIA has been rated BBB by Stratzy's MOST framework. This rating indicates that the company has Medium Fundamental Risks. The MOST framework assesses a company's Management, Outlook, Safety, and Trend to determine its overall risk profile. NLCINDIA's BBB rating suggests that it has a satisfactory level of management efficiency, a positive outlook for future growth, a stable financial position, and a consistent performance trend. This rating indicates that investors should exercise caution while investing in NLCINDIA, as it carries a moderate level of risk.

Company's Fundamentals:

NLC India (NSE: NLCINDIA) is a power generation company listed on the National Stock Exchange (NSE) of India. Its current stock performance includes a Price-to-Earnings (PE) ratio of 12.85, indicating that investors are willing to pay 12.85 times the company's annual earnings for each share they own. The Price-to-Book (PB) ratio of 2.01 suggests that the company's market value is twice its book value, which could indicate undervaluation. Additionally, NLC India offers a Dividend Yield of 1.47%, providing investors with a regular income stream from their investment.

Fundamental and Technical information provided in this blog were last updated on 26 Jun, 2024

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