NCL Industries Limited

Basic Materials — Building Materials · NSE

₹164.00−₹1.87 (−1.13%)

DalalBaazaar Score

64 / 100

🟢 Good

Verdict

REASONABLE

Risk

Moderate

Driven by micro-cap size, which brings thin liquidity, falling profits.

In simple words: Reasonable but unspectacular business quality, though profits are falling even as sales grow. The direction of profits is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:00 pm

Understanding the Business

Company site ↗

The 60-second version of NCL Industries Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

NCL Industries Limited manufactures and sells building materials in India. It operates through five segments: Cement; Boards; Hydel Power; Ready Mix Concrete; and Readymade Doors.

IndustryBuilding Materials

SectorBasic Materials

Employees825

Annual revenue₹1,422 Cr

How does it make money?

Turns over ₹1,422 Cr a year. Of every ₹100 of sales, about ₹7 reaches shareholders as profit, with ₹16 left at the operating level before interest, tax and depreciation. Each of its 825 employees supports ₹1.72 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹1.72 Cr

Who are its competitors?

The closest listed comparisons in its industry are ULTRATECH CEMENT LIMITED, GRASIM INDUSTRIES LTD, AMBUJA CEMENTS LTD, SHREE CEMENT LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Little sign of one

Returns on capital of 12.2% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

Peer median ROE7.4%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved -12% while net margin moved +144% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect-12%

Margin effect+144%

DalalBaazaar Score

64/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of 0.15 — historically steadier than the index
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ Profits have swung sharply from year to year — earnings are hard to forecast

Quality vs. Valuation

Company Quality

63/ 100

Average

How good the business is, ignoring the share price entirely.

Valuation

87/ 100

Cheap

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

6.2x

3Y Median

22.5x

40 monthly readings · mean 20.8x · range 7.8x–37.9x

Sector Median

36.2x

median of 4 sector peers

🟢Current valuation is approximately 72% below its 3y median of 22.5x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

🟢Against its sector it trades 83% below the peer median of 36.2x.

vs. its own history

Cheap

22.5x median over 40 months · -72%

vs. sector peers

Cheap

36.2x median of 4 peers · -83%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

4.2x

PEG

0.21

What's Good / What's Bad

🟢 What's Going Well5

Margins are improving
EBITDA margin is up from 10.3% to 16.4% over 3 years.
Debt is being paid down
Total debt is down 18% over 3 years.
Return on equity is rising
ROE has improved from 5.8% to 10.1%.
Return on capital is rising
ROCE has improved from 9.9% to 12.2%.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

No automated checks triggered

None of the automated financial checks below were triggered on the years of data available. That is not the same as a clean bill of health — see what could not be checked.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 10.3% to 16.4%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Deleveraging frees up earnings
Debt is down 18% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
Priced below its own history
The stock trades 72% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Cheaper than its peers
It trades 83% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Self-funding with balance-sheet headroom
Positive free cash flow of ₹35 Cr alongside low debt means growth, buybacks or dividends need no outside money — and a downturn can be absorbed rather than refinanced.

🔴 Bear CaseWhat could go wrong?

Earnings are hard to forecast
Profit has swung sharply from year to year, so any single year — good or bad — is a weak guide to the next. Cyclical earnings deserve lower multiples for that reason.
Size brings its own risk
Micro Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1EBITDA margin holds above 14%✓ 16.4%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Free cash flow remains positive✓ ₹35 Cr
Profit that never becomes cash eventually stops being profit.
3Debt / EBITDA stays below 2x✓ 1.0x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
4ROCE stays above 9%✓ 12.2%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.
5Valuation vs its own median of 22.5x✓ 6.2x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

6 / 11 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✗ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

6 good · 4 neutral · 1 weak

Market Cap

₹742 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

6.2x

Cheap

Cheap against the generic band

P/B Ratio

0.75x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹26.27

Profitable

Profitable on a per-share basis

ROE

10.1%

Moderate

Moderate capital efficiency

ROCE

12.2%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.32x

Low

Conservative leverage

Revenue Growth (YoY)

1.5%

Modest

Modest growth

Profit Growth (YoY)

-14.3%

Falling

Profits are shrinking

Dividend Yield

2.44%

Healthy

Meaningful cash return while you hold the stock

Free Cash Flow

₹35 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

P/E (Forward)

5.3x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

8.4%

Average

Average margins

Net Margin

6.3%

Average

Average bottom-line conversion

Current Ratio

1.23

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.15

Defensive

Steadier than the market

52W Range Position

25%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

170.1 / 173.2

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

27.9

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹1,610 Cr	₹1,643 Cr	₹1,362 Cr	₹1,422 Cr	-4.0%
EBITDA	₹166 Cr	₹230 Cr	₹142 Cr	₹233 Cr	+12.0%
EBITDA Margin	10.3%	14.0%	10.5%	16.4%	—
PAT (Net Profit)	₹44 Cr	₹93 Cr	₹25 Cr	₹95 Cr	+29.1%
EPS	₹9.79	₹20.61	₹5.57	₹21.09	+29.1%
ROE	5.8%	11.0%	2.9%	10.1%	—
ROCE	9.9%	14.0%	6.1%	12.2%	—
Total Debt	₹292 Cr	₹218 Cr	₹252 Cr	₹239 Cr	-6.4%
Free Cash Flow	₹103 Cr	₹121 Cr	-₹32 Cr	₹35 Cr	-30.1%

🔴 Revenue has shrunk at 4.0% a year over 3 years.

🟢 EBITDA has grown at 12.0% a year over 3 years.

🟢 EBITDA Margin has risen from 10.3% to 16.4% over 3 years (+6.1 pts).

🟢 PAT (Net Profit) has grown at 29.1% a year over 3 years.

🟢 EPS has grown at 29.1% a year over 3 years.

🟢 ROE has risen from 5.8% to 10.1% over 3 years (+4.4 pts).

🟢 ROCE has risen from 9.9% to 12.2% over 3 years (+2.3 pts).

🟢 Total Debt has shrunk at 6.4% a year over 3 years.

🔴 Free Cash Flow has shrunk at 30.1% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹1,574 Cr

Total Liabilities

₹634 Cr

Cash & Equivalents

₹3 Cr

Operating Cash Flow

₹145 Cr

Capex

-₹110 Cr

Shareholding (proxy)

Institutional Holding

0.5%

Insider Holding

53.5%

Corporate Actions

Dividend Rate

₹4

Ex-Dividend Date

11 Sept 2026

Peer Comparison

Company	P/E	ROE
ULTRATECH CEMENT LIMITED	37.6x	11.1%
GRASIM INDUSTRIES LTD	34.8x	5.5%
AMBUJA CEMENTS LTD	20.4x	7.4%
SHREE CEMENT LIMITED	49.7x	7.0%

Recent News

1 negative5 general

NCL Industries Share Price Forecast: 3 Year Outlook to 2030

Univest, 22 Jul

NCL Industries cement production up 22% YoY in Q2FY27

scanx.trade, 08 Oct

NCL Industries (NCLIND.NS) Edges Lower to ₹178.11, Holds Above Key Support Zone - Schiff Line

siam.in, 10 Sept

NCL Industries Posts 9% Jump in Cement Volumes Amid 33% Board Slump

Sahi, 09 Jul

NCL Industries vs Nifty 50: Share Price Performance Compared

Univest, 08 Oct

NCL Industries consolidated net profit declines 14.26% in the June 2026 quarter

Business Standard, 07 AugResults

🔴Potentially negativeReported deterioration, which feeds the growth and margin inputs on this page directly.

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.
RSI is in oversold territory — could mean either a bargain or a stock still falling for good reason. Check the 'why' before assuming reversal.

DalalBaazaar Thesis

StrongFinancial Health · Valuation

MiddlingBusiness Quality · Growth · Profitability

WeakRisk

Points for each in the Score ↑

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you.

All 5 tripwires holding · see Key things to watch ↑