Rs 2,880 crore capex target for FY24: This power generation company incorporates a new subsidiary for 2 GW project!

The company is targeting a capex of Rs.2,880 crores for FY24 and Rs 2,386 crore for FY25.

NLC India Limited, a Navratna Central Public Sector Undertaking headquartered at Neyveli, Tamilnadu, incorporated a new wholly-owned Subsidiary “NLC India Green Energy Limited” (NIGEL). Currently, projects to the tune of 2 GW of Renewable Energy are under implementation and will be taken up by NIGEL, including a 600 MW solar power project in Gujarat and an 810 MW Solar Photovoltaic Power Project in Rajasthan. Already, NLCIL has incorporated a wholly-owned subsidiary NLC India Renewables Limited for Asset monetisation.

On the occasion, Shri. Prasanna Kumar Motupalli, Chairman and Managing Director of NLCIL said, ‘The newly-incorporated company will take care of planning, participating in upcoming RE tenders, tendering, execution and commissioning of Renewable projects.”

“The subsidiary is expected to achieve 5 GW capacity by 2030 and contribute to carbon emission reduction,” he also added.

NLC India is engaged in the business of mining lignite and generation of power by using lignite as well as renewable energy sources. NLC is a PSU company with a 79.20 per cent stake owned by The President of India. The company is targeting a capex of Rs 2,880 crore for FY24 and Rs 2,386 crore for FY25.

On Wednesday, shares of NLC India Ltd plunged 2.36 per cent to Rs 132.55 per share with an intraday high of Rs 137.20 and an intraday low of Rs 131.35. The shares of the company have a PE of 14.6x whereas the industry PE is 25x. The company has a market cap of over Rs 18,000 crore.

The stock is up by 90 per cent in just 1 year and over 160 per cent in 3 years. Investors should keep an eye on this multibagger Mid-Cap stock.

Disclaimer: The article is for informational purposes only and not investment advice.