Banking and finance

Dolly Khanna buys stake in this smallcap for 4th quarter

NEW DELHI: Seasoned investor Dolly Khanna elevated stake in cement maker NCL Industries for an additional quarter, even because the scrip has doubled in worth within the final one yr.

Shareholding sample for September quarter suggests Khanna owned 8,01,062 shares or 1.77 per cent stake in NCL Industries in contrast with 7,93,806 shares or 1.75 per cent stake she owned within the firm as of June 30. She owned 7,67,806 shares within the cement maker as of March 31 and entered the scrip in December 2020 quarter with 4,83,580 shares.

On Wednesday, the scrip was buying and selling 1.01 per cent larger at Rs 231.50 on BSE. At this value, Khanna’s stake was value roughly Rs 19 crore.

The inventory has delivered 120 per cent return within the final one yr and round 326 per cent from March 2020 lows. It was nonetheless buying and selling at 52 per cent low cost to its 5-year common price-to-sales and 18 per cent low cost to its 5-year common trailing PE.

NCL operates in South India and about 80 per cent of its cement enterprise comes from Andhra Pradesh and Telangana. It has clinker and grinding capability of two.6 million tonnes and a pair of.7 million tonnes, respectively.

NCL has cement bonded particles boards capability of 90,000 tonne each year and hydro energy crops with complete capability of 15.75 MW. The corporate has additionally added a plant to fabricate premium doorways with a capability of 1,000 doorways per day.

Ample availability of limestone in captive mines together with availability of captive energy sufficient helps NCL industries meet 30-35 per cent of its present requirement and its advantageous location leads to average working effectivity, Crisil stated final month.

The corporate has diversified its product profile by venturing into different constructing materials akin to ready-mix concrete, cement bonded particle boards and doorways. The merchandise are marketed underneath the manufacturers “Nagarjuna Cement”, “Nagarjuna RMC”, “Bison Panels” and “NCLdoors”.

“Internet value and gearing are wholesome at round Rs 665 crore and 0.43 time, respectively, as of March 31, 2021. Debt safety metrics are additionally wholesome with curiosity protection and web money accrual to complete debt ratios of 13.2 instances and 0.62 time, respectively, for fiscal 2021. The corporate is presently enterprise debt funded capital expenditure of over Rs 250 crore to extend its cement capability by 1 MTPA which is estimated to take about 18 months’ time after receiving the required approvals. Regardless of this, the monetary danger profile is anticipated to stay comfy,” Crisil stated final month.

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