NCL Industries Ltd (NCLIND) AI Stock Analysis

• Market Cap: ₹7.71B
• Dividend Yield: 1.52%
• Average Volume (3M): 3.83K
• Price to Earnings (P/E): 17.2
• Beta (1Y): 1.30
• Revenue Growth: -16.46%
• EPS Growth: -21.60%
• Country: IN
• Employees: 1,026
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Construction Materials
• EPS (TTM): 2.93
• Shares Outstanding: 45,232,790
• 10 Day Avg. Volume: 3,091
• 30 Day Avg. Volume: 3,834
• PEG Ratio: -0.46
• Price to Book (P/B): 0.99
• Price to Sales (P/S): 0.60
• P/FCF Ratio: -16.97
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 49 Neutral
• Price Target: ₹170.00 ▼(-18.09% Downside)
• Action: Reiterated Date: 09/23/25
• Date: Action: Reiterated 09/23/25

The overall stock score reflects significant challenges in financial performance, with declining revenue and profitability. Technical indicators show a lack of strong momentum, and the valuation suggests potential overvaluation. These factors collectively contribute to a cautious outlook for the stock.

Positive Factors

Diversified product mix

NCL sells commodity cement plus higher-value prefabricated/engineered building products. This product diversification reduces reliance on cyclic cement pricing, supports higher-margin cross-sell opportunities, and provides structural resilience in revenue mix over the next 2–6 months.

Improving leverage management

A marginal improvement in debt-to-equity signals progress on leverage control, which sustainably lowers financial risk and interest burden. Better leverage management improves flexibility to fund operations or capex and withstand cyclical downturns over a medium-term horizon.

Stable equity financing

A stable equity ratio indicates the company has not relied on abrupt increases in leverage or distress financing. This steadiness supports credit access and operational continuity, providing a durable buffer for funding and capital allocation decisions in the coming months.

Negative Factors

Declining revenue

Falling revenues reflect weakening demand or market share loss in core building materials. Reduced topline scale undermines margins and fixed-cost absorption, constraining reinvestment capacity and making it harder to restore growth across the next 2–6 months without structural demand recovery or new market wins.

Negative free cash flow

Negative free cash flow limits the company’s ability to fund capex, service debt, or invest in product initiatives from operations. Persistent FCF deficits increase reliance on external financing and raise execution risk for strategic initiatives, threatening operational sustainability over the medium term.

Contracting margins and weaker returns

Margin compression and declining returns on equity point to worsening operational efficiency or rising input costs. Lower margins reduce internal cash generation and shareholder returns, constrain competitive investment, and can lead to prolonged profitability pressure absent structural cost or pricing fixes.

NCL Industries Ltd Business Overview & Revenue Model

Company Description

NCL Industries Limited manufactures and sells building materials in India. It operates through five segments: Cement, Boards, Readymade Doors, Energy, and Ready Mix Concrete. It offers cement, including ordinary Portland and pozzolana Portland cement under the Nagarjuna brand name; and special cement for making concrete sleepers. The company also provides ready mixed concrete under the Nagarjuna brand name; cement-bonded particleboards under the Bison Panel brand name; and readymade doors under the NCL Door brand. In addition, it engages in the generation of hydel power with a total installed capacity of 15.75 MW. The company was formerly known as Nagarjuna Cements Limited and changed its name to NCL Industries Limited in December 1987. NCL Industries Limited was incorporated in 1979 and is based in Secunderabad, India.

How the Company Makes Money

NCL Industries makes money primarily by manufacturing and selling building materials to the construction supply chain (dealers/distributors, contractors, and project customers). Its core revenue stream is the sale of cement, where earnings are driven by sales volumes and realized pricing, net of freight and distribution costs. A second revenue stream comes from cement-based and prefabricated/engineered building products (e.g., boards/panels and other building components), which generate revenue through product sales to similar customer segments and can be influenced by product mix and value-added specifications. Overall profitability is affected by input and operating costs typical to these businesses (such as energy/fuel, raw materials, logistics, and plant utilization) and by demand conditions in the regions it serves. Specific details on major customer contracts, partnerships, or segment-level revenue contribution: null.

NCL Industries Ltd Financial Statement Overview

Summary

NCL Industries Ltd has faced declining revenue and profitability over the past year, with weakening margins and lower free cash flow. While leverage has improved marginally, the overall financial health reflects challenges in maintaining growth and liquidity.

Income Statement

The company has shown a decline in revenue from 2024 to 2025, indicating a negative revenue growth rate. Gross profit and net income margins have also decreased over the past year, showing a downward trend in profitability. The EBIT and EBITDA margins have contracted, suggesting reduced operational efficiency.

Balance Sheet

The debt-to-equity ratio improved slightly, indicating better leverage management. However, the equity ratio remains relatively stable, suggesting no significant improvement in asset financing stability. Return on equity has declined, reflecting reduced profitability for shareholders.

Cash Flow

Free cash flow has turned negative in the most recent year, indicating potential liquidity challenges. The operating cash flow to net income ratio has decreased, suggesting less cash generation relative to net income. Free cash flow to net income ratio reflects similar liquidity concerns.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	14.08B	14.11B	18.71B	16.10B	16.33B	13.84B
Gross Profit	6.90B	5.48B	9.12B	7.04B	8.28B	7.61B
EBITDA	1.56B	1.20B	2.25B	1.67B	2.17B	2.90B
Net Income	500.84M	251.97M	932.19M	442.87M	943.50M	1.45B
Balance Sheet
Total Assets	16.33B	16.35B	15.39B	15.20B	14.71B	12.99B
Cash, Cash Equivalents and Short-Term Investments	176.18M	218.12M	522.53M	430.17M	107.17M	709.35M
Total Debt	2.59B	2.52B	2.18B	2.92B	3.73B	3.01B
Total Liabilities	7.44B	7.77B	6.90B	7.50B	7.30B	6.34B
Stockholders Equity	8.89B	8.58B	8.49B	7.70B	7.41B	6.65B
Cash Flow
Free Cash Flow	79.03M	-498.43M	1.21B	1.05B	-684.24M	951.10M
Operating Cash Flow	1.02B	679.90M	1.83B	2.08B	716.25M	2.41B
Investing Cash Flow	-1.02B	-1.12B	-590.93M	-958.05M	-1.39B	-1.36B
Financing Cash Flow	-127.59M	142.07M	-1.10B	-828.23M	69.81M	-523.60M

NCL Industries Ltd Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 207.55
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:NCLIND, the sentiment is Negative. The current price of 207.55 is above the 20-day moving average (MA) of 183.97, above the 50-day MA of 189.47, and above the 200-day MA of 203.21, indicating a bearish trend. The MACD of -2.62 indicates Positive momentum. The RSI at 33.78 is Neutral, neither overbought nor oversold. The STOCH value of 56.40 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:NCLIND.

NCL Industries Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
TNPL	58 Neutral	₹9.27B	36.69	―	2.08%	4.65%	-127.24%
ZUARI	57 Neutral	₹8.34B	8.74	―	―	23.32%	447.31%
SAURASHCEM	55 Neutral	₹6.55B	-22.13	―	2.39%	2.37%	55.27%
NCLIND	49 Neutral	₹7.71B	17.17	―	1.52%	-16.46%	-21.60%
DECCANCE	48 Neutral	₹9.12B	-467.16	―	0.08%	-28.32%	93.44%
SHREDIGCEM	45 Neutral	₹8.95B	-48.17	―	1.66%	3.09%	-50.15%

NCL Industries Ltd Corporate Events

NCL Industries Reports Loss of Physical Share Certificates, Moves to Issue Duplicates

NCL Industries Ltd has notified the stock exchanges about the reported loss of certain physical share certificates, in line with Regulation 39(3) of the SEBI Listing Obligations and Disclosure Requirements. The company, through its registrar and transfer agent Venture Capital and Corporate Investments Pvt Ltd, has initiated the process for issuing duplicate share certificates to the affected shareholders, indicating routine registry administration with limited operational impact but relevance for holders of physical shares.

The disclosure underscores NCL Industries’ adherence to prescribed market disclosure norms and highlights ongoing management of legacy physical shareholdings alongside dematerialized securities. While the event does not signal a change in business fundamentals, it is a procedural step aimed at safeguarding shareholder interests and maintaining accurate share records in the company’s register.

NCL Industries Discloses Loss of Share Certificates and Move to Issue Duplicates

NCL Industries Ltd has notified the stock exchanges that its registrar and transfer agent, Venture Capital and Corporate Investments Pvt. Ltd., has reported the loss of certain physical share certificates held by individual shareholders. In line with Regulation 39(3) of SEBI’s Listing Obligations and Disclosure Requirements, the company has disclosed receipt of requests from these investors for processing and issuance of duplicate share certificates, signaling routine compliance with securities market norms and safeguarding shareholder interests.

NCL Industries Discloses Loss of Physical Share Certificates and Duplicate Requests

NCL Industries Ltd has informed the stock exchanges that its registrar and transfer agent has reported the loss of certain physical share certificates held by shareholders and has received requests for issuance of duplicate certificates. The disclosure, made under SEBI’s Listing Obligations and Disclosure Requirements, is a routine compliance step and signals that the company is formally processing these investor requests, with no indication of any impact on its operations or financial performance, but with relevance for affected shareholders and record-keeping integrity.

NCL Industries Announces Completion of Independent Director Sudha Reddy’s Term

NCL Industries Limited has announced that independent director Mrs. Sudha Reddy Punuru has completed her term on the company’s board, effective at the close of business on 3 January 2026. With the expiry of her tenure, she also ceases to be a member of the Corporate Social Responsibility Committee, marking a change in the company’s board composition and CSR committee structure in line with regulatory disclosure requirements.