In this article, we will discuss the NLC India share price target for 2024 to 2035, fundamentals, stock performance, future plans, and challenges depending on the various reports from research and brokerage firms and market research analysts.
NLC India Limited, or Neyveli Lignite Corporation India Limited, is a Navratna company of the Govt. of India that operates under the administrative control of the Ministry of Coal, Govt. of India. NLC, known as Neyveli Lignite Corporation, was set up in 1956 and operates lignite mining and power generation sectors predominantly in Tamil Nadu and Rajasthan.
The firm produces lignite from opencast mines, generating electricity with the help of six thermal power stations that have a generation capacity of 3640 MW. The company extracts approximately 30 million tons of lignite annually. In the recent past, NLC has diversified in the area of renewable energy and has recently commenced with solar and wind power projects to enhance its energy capabilities.
According to the principles of sustainable development strategies, some expected success of NLC provides a fundamental improvement in the quantifiable aspect of India’s energy security and socio-economic development.
Q2 FY 2025 Results
For the second quarter of FY25, NLC India reported strong financial results:
- Net Profit: The net profit of NLC India during Q2 FY25 was Rs 982.41 crore, which was Rs 1,086 crore in Q2 FY23, down to a YoY negative growth of (-) 9.54%.
- Revenue from Operations: Q2 FY25 revenue of the company was Rs 3,657 crore compared to Rs 2,977 crore in Q2 FY24; that is a YoY increase of 22.84%.
- Profit Before Tax (PBT): The profit before tax was Rs 1,133 crore for Q2 FY 25, which has fallen from Rs 1701 crore of Q2 FY 24, a 33.39% decline.
- Earnings Per Share (EPS): On the operational front, the EPS for the current quarter was Rs 6.58, Rs 0.72 lower than ₹7.82 in Q2 FY24, primarily due to a YoY decline of 15.86%.
| Q2 FY 2025 (Cr) | Q2 FY 2024 (Cr) | Year-on-Year Change (%) | |
| Net Profit | 982.41 crore | 1086 crore | -9.54% |
| Revenue from Operations | 3,657 crore | 2,977 crore | +22.84% |
| Profit Before Tax | 1,133 crore | 1,701 crore | -33.39% |
| Earnings Per Share (EPS) | 6.58 | 7.82 | -15.86% |
Financial Performance
The consolidated result of NLC India for the quarter ended September 2022 highlights impressive growth rates on the sheer volume of demand for electricity and optimum cost control measures.
A relatively sharp increase in revenues and the net profit margin underlines the effectiveness in the identification and realization of market opportunities. The increase in EBITDA margin is due to high levels of efficiency in the mining and power generation business.
Market Cap – 1,058 crore
P/E ratio – 91.56
Industry P/E – 37.63
Debt to Equity – 1.06
Return on Equity – 10.65%
Dividend Yield – 0.07%
NLC India’s 52-week high was Rs 5.82, and the 52-week low was Rs 45.27 per equity share.
Shareholding Pattern
NLC India has a shareholding pattern as of 30 Sep, 2024:
Promoter holding is 57.39%.
Foreign institutions have a 13.07 percent holding, increased by 11.67% YoY.
Retail participation is 7.08 percent, decreased by -1.36% YoY and decreased by -1.16% QoQ.
The total number of shareholders has decreased by -19.94% to 787 from 913.
Stock Performance
NLC India has given good returns to its investors, given below:
+13.52 percent return in the last 1 week
+28.55 percent returns in the last 1 month
+162.72 percent returns in the last 3 months
+563.14 percent returns in the last 6 months
+455.70 percent returns in the last 1 year
NLC India Share Price Target 2024
The share price target of NLC India is expected to witness a bullish trend in the year 2024, with the avg share price of Rs 330 in FY 2024.
| 2024 | Share Price |
|---|---|
| Initial Target | 280 |
| Mid-year Target | 450 |
| Year-end Target | 330 |
The growth percentage for NLC India shares is predicted to be positive, with an upward trend towards the end of the year due to strong quarterly results.
Fluctuating Raw Material Prices: These changing market prices for lignite and coal can affect both the profit margin and the operational cost of Lattice.
NLC India Share Price Target 2025
The share price target of NLC India is expected to witness a bullish trend in the year 2025, with the maximum share price at Rs 755 in FY 2025.
| 2025 | Share Price |
|---|---|
| Initial Target | 350 |
| Mid-year Target | 755 |
| Year-end Target | 680 |
The growth percentage for NLC India shares is predicted to be positive, with an upward trend towards the end of the year.
Capacity Expansion: NLC India wants to increase its overall power generation capacity to 20 GW by 2030, out of which 10 GW will be generated by conventional plants and another 10 GW from renewable plants.
NLC India Share Price Target 2030
The share price target of NLC India is expected to witness a bullish trend in the year 2030, with the maximum share price at Rs 2,820 in FY 2030.
| 2030 | Share Price |
|---|---|
| Initial Target | 1,550 |
| Mid-year Target | 2,820 |
| Year-end Target | 2,465 |
The growth percentage for NLC India shares is predicted to be positive, with an upward trend towards the end of the year.
Focus on Sustainability: NLC India has set its ambition to reach net zero by 2070, both in correspondence with the government’s approach to climate change and the Panchamrit plan.
NLC India Share Price Target 2035
The share price target of NLC India is expected to witness a bullish trend in the year 2035, with the maximum share price at Rs 4,225 in FY 2035.
| 2035 | Share Price |
|---|---|
| Initial Target | 3,550 |
| Mid-year Target | 4,225 |
| Year-end Target | 4,050 |
The growth percentage for NLC India shares is predicted to be positive, with an upward trend towards the end of the year.
Market Demand Fluctuations: Fluctuations in energy consumption as a result of demographic factors, the emergence of a new sector, or contraction of the market due to economic conditions affect revenue estimates and business planning.
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Future Plans
- Investment in Renewables: It aims at reaching a total of 10.11 GW renewable energy capacity through Rs 50,000 crore investment in the renewable business.
- Doubling Mining Capacity: NLC India is planning to expand its lignite mining capacity to 100 MMT with acquisition and other expansions by 2030.
- Asset Monetisation: In asset monetisation, the company will purchase renewable energy assets for Rs 6,263 crore.
Challenges
- Regulatory Compliance: Issues remain constant in terms of compliance with strict environmental measures and standards of emission and sustainability.
- Competition in the Renewable Sector: This competition keeps building up, and different renewable companies have to be innovative to capture and retain the market share.
- Infrastructure Development: Extension of capacity for new projects involves enormous capital investment, is time-consuming, and may hamper the planned capacity expansions.
Conclusion
Based on their performance in Q2 FY25, NLC India Limited’s performance shows that its strategic plans concern quality assurance in the energy sector. Although the company has some issues and threats, like fluctuation of raw material prices and having competitors in the market, the company has advantages like having a plan to expand the capacity and diversification in renewable energy sources.
This way, NLC wants to strengthen its market position and make a substantial contribution to India’s energy supply in the future by prioritizing the development of innovation and sustainability.
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Disclaimer: I am not a SEBI-registered investment adviser or research analyst. The information shared is only for educational purposes. This is not an investment advice.