At a Glance
Nagpur Power & Industries Ltd operates in manganese alloys and ferro slag — stuff you might find interesting if you’re an industrialist or a metallurgist. With a P/E of 59, a ₹162 Cr market cap, ROE of 3.3%, and one oddly good FY25, the stock has more mood swings than Sensex on election day. Is this revival… or just a well-timed “other income”?
1. 🎯 Introduction with Hook
What happens when a commodity company has:
- Low margins
- High working capital
- Volatile earnings
- And no dividend for 15+ years?
You get Nagpur Power & Industries Ltd — the financial equivalent of an old PSU trying to stay relevant on Instagram.
But FY25 delivered a plot twist: ₹2.75 Cr net profit, ₹62 Cr revenue, and actual operating profit. Is this the beginning of redemption?
2. 🛠️ Business Model – WTF Do They Even Do?
Core Segments:
- Ferro Manganese Slag Extraction
- High/Medium/Low carbon variants
- Used in steel and alloys
- Silico Manganese Recovery
- Electronal Division
- They don’t explain what this means
- Electro-Mechanical Division
- Again, vague but possibly control systems or transformers
No unique moat. It’s a low-margin, capital-intensive, commodity-linked business.
3. 📈 Financials Overview – Profit, Margins, ROE, Growth
| Metric | FY23 | FY24 | FY25 |
|---|---|---|---|
| Revenue | ₹43.8 Cr | ₹46.6 Cr | ₹62.2 Cr |
| Net Profit | ₹-3.7 Cr | ₹-0.6 Cr | ₹2.75 Cr |
| OPM | -0.7% | 0.6% | 4.7% |
| ROE | -2.8% | -0.4% | 3.3% |
| EPS | ₹-2.78 | ₹-0.43 | ₹2.10 |
🔼 Revenue jumped 33% YoY
🟢 Margins turned positive after years
⚠️ Still very small base
4. 💸 Valuation – Is It Cheap, Meh, or Crack?
| Metric | Value |
|---|---|
| Market Cap | ₹162 Cr |
| P/E | 58.8x |
| Book Value | ₹64.9 |
| CMP | ₹124 |
| Price / Book | 1.9x |
👎 The P/E is way too high for a company with:
- Fluctuating profits
- High dependency on “other income”
- ROE of 3.3%
🎯 Fair Value Range = ₹38 – ₹55
Assuming:
- Normalized EPS = ₹1.2–₹1.6
- P/E of 30–35 (generous for this sector)
5. 📊 What’s Cooking – News, Triggers, Drama
🗞️ Re-appointment of Independent Director
- Mr. Shyam Kanbargi for 5 years = governance stability (on paper)
📉 Delayed FY25 results
- Blamed it on subsidiaries, but it raised eyebrows
📦 Electronal and Electro-Mechanical Units
- Still no clarity — zero investor presentations or updates
- Either potential restructuring, or zombie divisions
📈 FY25 jump in “Other Income”: ₹5.2 Cr
- That’s 2x net profit — 🤔
6. 💣 Balance Sheet – How Much Debt, How Many Dreams?
| Metric | FY25 |
|---|---|
| Equity Capital | ₹13.1 Cr |
| Reserves | ₹71.9 Cr |
| Borrowings | ₹17.1 Cr |
| Total Liabilities | ₹124.4 Cr |
| Fixed Assets | ₹55.8 Cr |
| Investments | ₹24 Cr |
| Other Assets | ₹43.7 Cr |
⚠️ D/E = ~0.24 — low, but equity base is too small to take stress
🛠️ Asset-heavy with low turnover
7. 💵 Cash Flow – Sab Number Game Hai
| FY | CFO | CFI | CFF | Net Cash |
|---|---|---|---|---|
| FY23 | ₹2.3 Cr | ₹-1.87 Cr | ₹-0.39 Cr | ₹0.02 Cr |
| FY24 | ₹-3.95 Cr | ₹3.89 Cr | ₹1.48 Cr | ₹1.42 Cr |
| FY25 | ₹-9.13 Cr | ₹-0.49 Cr | ₹8.26 Cr | ₹-1.37 Cr |
🔻 FY25 CFO is negative, despite net profit — huge red flag
💰 Financing inflow of ₹8 Cr = patch job
8. ⚙️ Ratios – Sexy or Stressy?
| Ratio | FY25 |
|---|---|
| ROE | 3.30% |
| ROCE | 5.18% |
| Interest Coverage | ~1.3x |
| Working Capital Days | 271 |
| Cash Conversion Cycle | 241 days |
😬 Inventory Days = 192
😩 Debtor Days = 124
That’s a long cash cycle for a low-margin biz.
9. 📉 P&L Breakdown – Show Me the Money
| FY | Revenue | OPM | PAT | EPS |
|---|---|---|---|---|
| FY23 | ₹43.8 Cr | -0.7% | ₹-3.7 Cr | ₹-2.78 |
| FY24 | ₹46.6 Cr | 0.6% | ₹-0.6 Cr | ₹-0.43 |
| FY25 | ₹62.2 Cr | 4.7% | ₹2.75 Cr | ₹2.10 |
🟢 Sales improved steadily
🟢 Margins rebounded to ~5%
🔴 But bulk of PAT = other income
10. 🧩 Peer Comparison – Who Else in the Game?
| Company | P/E | ROE | OPM | Rev (Cr) |
|---|---|---|---|---|
| Indian Metals | 11x | 17% | 20.7% | ₹2,565 |
| Maithan Alloys | 5.5x | 18.3% | 9.8% | ₹1,806 |
| Jainam Ferro | 29x | 9% | 6.7% | ₹221 |
| Nagpur Power | 59x | 3.3% | 4.7% | ₹62.2 |
💀 NPIL is most expensive, least profitable, and smallest in scale.
11. 🧑💼 Miscellaneous – Shareholding, Promoters
| Category | % |
|---|---|
| Promoters | 61.23% |
| DIIs | 6.73% |
| Public | 32.05% |
| Shareholders | 4,883 (stable) |
✅ Promoter holding is solid
📉 No pledging
🤔 DIIs continue to hold despite muted returns — patience or inertia?
12. 🧠 EduInvesting Verdict™
“This isn’t a turnaround story. It’s a 30-year endurance test.”
Nagpur Power has:
- Weak margins
- Long working capital cycles
- Earnings heavily dependent on other income
- No dividend history
- Zero investor communication
Yet the stock is priced like a specialty chemical turnaround.
Unless you’re betting on manganese prices and management suddenly discovering operational leverage, this is more of a speculative relic than a strategic investment.
🎯 Fair Value = ₹38–₹55
✍️ Written by Prashant | 📅 08 July 2025
Tags: Nagpur Power, manganese stocks India, ferro alloys, microcap metal stocks, turnaround trap, long working capital, zero dividend companies, EduInvesting analysis
