Jun 25, 2015

NCL Industries: Value and Growth Stocks

NCL Industries manufactures Cement and PreFab material. NCL Industries is the only manufacturer of Cement Bonded Particle Boards (CBPB) in the country, marketed under the brand name Bison Panel.
The board is used for false ceiling, Wall, and partition.
Board division is doing good and with increase demand in construction activity, board business will improve.

78% of Turnover comes from Cement.
Board business gives 13%.
Hydel Power contribute 2% of total turnover.

Before Bifurcation of Andhra Pradesh, business was hit due to agitation etc. After bifurcation of state, lots of construction work need to be done. Both states are trying to do good in business front. This company has done very good in recent quarters. In past, it was in loss.

Recently, insider buying has happened aggressively. Kalidindi Ravi is Managing Director of NCL Industries has acquired major chunk recently (Mar and Apr). He hold 6.8% of shares now. May 26, 2015:
Recently Promoters has allotted 17 Lakhs equity shares at premium of Rs 12 according to resolution passed in Apr 2014.

CMP: Rs 76.25,
PE = 35,
P/S = 0.46,
P/B = 1.66.

Risk: Pledged shares and if it cannot deliver good quarters as it done recently.