1. At a Glance
NCL Industries Ltd — cement, particle boards, ready-mix concrete, doors, and even small hydropower — is what happens when a company tries to diversify but still gets measured on cement margins. Q1 FY26 clocked ₹338 crore in sales and ₹20.21 crore in net profit, but promoter pledges at 33.7% of holding keep investors twitchy.
2. Introduction
Think of NCL Industries as the middle-order batsman of the cement sector: rarely making headlines, sometimes hitting a surprise fifty, often just holding the crease. Founded in 1979 and part of the NCL Group, the company caters to the South Indian construction market with a spread that covers:
- Cement (core revenue driver)
- Ready-Mix Concrete
- Cement Particle Boards
- Pre-hung Doors
- Two small hydro power projects (because why not)
With 2,000+ dealers, the distribution reach is strong, but growth has been sluggish — 5-year sales CAGR at just 9% and 3-year profit CAGR negative.
3. Business Model (WTF Do They Even Do?)
- Cement & RMC: Bulk of revenue, margin-sensitive to fuel, freight, and clinker
- prices.
- CBPB: Niche product for interiors and construction boards.
- Doors: Fits into real estate and institutional supply.
- Hydro Projects: Small, steady, not a game-changer.
Diversification helps de-risk, but cement is still king here — other segments are garnish on the thali.
4. Financials Overview
Q1 FY26 (Jun 2025)
- Revenue: ₹338.47 crore (YoY -4.63%)
- Operating Profit: ₹51 crore (OPM 15%)
- Net Profit: ₹20.21 crore (YoY +56.18%)
- EPS: ₹4.47
Annualised EPS: ₹4.47 × 4 = ₹17.88 → P/E = 222 / 17.88 ≈ 12.4 (vs reported 26.2, which is based on trailing weaker quarters).
5. Valuation (Fair Value RANGE only)
| Method | Assumptions | Value/Share (₹) |
|---|---|---|
| P/E | 12–15× on ₹17.88 EPS | 215 – 268 |
| EV/EBITDA | FY26E EBITDA ₹200 cr × 6–7× | 210 – 245 |
| DCF | 5% sales growth, 11% discount rate | 200 – 240 |
Fair Value
