Power Generation Company bags its Third Commercial Coal Mine having total geological reserve of 720.87 Million Tonnes with a peak rated capacity of 12 MTPA
The company’s shares have delivered an impressive return of over 60 per cent in last one year.
On Friday, NLC India Ltd’s stock price soared by 4 per cent as the company emerged as the highest quoted (H1) bidder for the New Patrapara South Coal Mine in Angul District of Odisha subsequent to the commercial coal block E-auction held on November 21, 2024 by the Ministry of Coal.
The Coal Mine Block has a total geological reserve of 720.87 million Tonnes (Approximately) with a peak-rated capacity of 12 Million Tonnes Per Annum. This will be the third commercial coal mine for NLCIL and the Company is committed towards its capacity addition.
NLC India is engaged in the business of mining of lignite and generation of power by using lignite as well as Renewable Energy Sources.
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In the Quarterly Results of September 2024, the company reported revenue of Rs 3,657.27 crore, an 8.33 per cent growth compared to Rs 3,376.05 crore in June 2024 and a 22.83 per cent increase from Rs 2,977.53 crore in September 2023. Net profit for the quarter stood at Rs 911.85 crore, reflecting a 63.00 per cent growth from Rs 559.42 crore in the previous quarter but a 15.94 per cent decline from Rs 1,084.70 crore in the same period last year. The net profit margin was recorded at 24.93 per cent, compared to 16.57 per cent in June 2024 and 36.43 per cent in September 2023.
For the fiscal year 2024, the company posted revenue of Rs 12,999.03 crore, a 19.59 per cent decline from Rs 16,165.24 crore in fiscal year 2023. Net profit for FY24 was Rs 1,835.92 crore, a significant improvement from a loss of Rs 264.38 crore in FY23, showing a growth of 111.51 per cent. The net profit margin for FY24 was -2.03 per cent, compared to 14.21 per cent in FY23.
The shares of the company have a PE of 19.9x whereas the industry PE is 34.4x. The company has been maintaining a healthy dividend payout of 25.4 per cent. Mutual Fund Holding increased by 0.71 per cent in the last quarter to 9.94 per cent. The stock has given 60 per cent returns in the last year.
Investors should keep an eye on this mid-cap stock.
Disclaimer: The article is for informational purposes only and not investment advice.