1. At a Glance
NTC Industries is a smallcap cigarette manufacturer with just ₹60 Cr revenue, ₹11 Cr profit, and a 7% ROE. At a CMP of ₹172, this quiet stock is trading at 15x earnings and 1.2x book value. No drama. No dilution. Just…a very sleepy, cash-generating business that even SEBI might forget exists.
2. Introduction with Hook
NTC is that underrated character in every 90s Bollywood movie—always in the background, never in trouble, sometimes holding the briefcase. It operates with minimal noise, steady margins, and a market cap of ₹206 Cr, while large-cap tobacco peers steal the limelight. Yet in FY25, it quietly posted ₹11 Cr net profit with just ₹60 Cr sales. Curious? You should be.
- CMP: ₹172
- P/E: 15.5x
- Net Profit FY25: ₹11.4 Cr
- Book Value: ₹141
- Dividend: ₹3 per share in FY25
- Promoter Holding: 63.3%
3. Business Model (WTF Do They Even Do?)
- Core Business: Manufacturing of cigarettes, especially specialty and filter-tipped ones.
- Brands: Not mass-market. Caters to niche and possibly export demand.
- Other Business Lines: Small-scale trading and real estate holdings.
- Presence: Not Pan-India like ITC or VST. Operates mainly in West Bengal & nearby states.
It’s a “premium niche tobacco” business. But whether that niche is growing—or just clinging to the past—is the million-dollar question.
4. Financials Overview
| Year | Revenue (₹ Cr) | Net Profit (₹ Cr) | EPS | OPM % | ROE % |
|---|---|---|---|---|---|
| FY23 | ₹56.9 | ₹9.1 | ₹7.63 | 21% | 6.5% |
| FY24 | ₹57.2 | ₹9.4 | ₹7.87 | 21% | 6.6% |
| FY25 | ₹60.0 | ₹11.4 | ₹9.51 | 24% | 7.1% |
A steady and unexciting performer. Sales growth? Meh.
Margins? Actually improved.
EPS growth? Solid 20%.
Still, not something you’d bring up at a party.
5. Valuation
- EPS FY25: ₹9.5
- P/E: 15.5x
- Book Value: ₹141
- P/B: 1.2x
- CMP: ₹172
Fair Value Range:
- Bear Case: ₹100–₹120 (If margins drop, zero growth)
- Base Case: ₹160–₹180 (Stable P/E of 15–18x)
- Bull Case: ₹200–₹240 (If profit touches ₹15 Cr+, with a bonus/dividend trigger)
Bottom line: It’s fairly priced now. Not a steal, not a bubble.
6. What’s Cooking – News, Triggers, Drama
- Dividend of ₹3/share in FY25
- Promoter stake constant at 63.3%
- No dilution, no QIPs, no shady land sales
- Very low public shareholding (<5%)
- 5x rise in shareholder count in 1 year
Not much drama. Maybe that’s the drama?
7. Balance Sheet
| FY | Equity Cap (₹ Cr) | Reserves | Borrowings | Total Assets |
|---|---|---|---|---|
| FY23 | ₹11.9 | ₹155 | ₹0 | ₹177 Cr |
| FY25 | ₹11.9 | ₹165 | ₹0 | ₹187 Cr |
- Debt-free
- Healthy reserve growth
- Very clean balance sheet—almost suspiciously clean for a smallcap
8. Cash Flow – Sab Number Game Hai
| Year | CFO (₹ Cr) | Capex | FCF | Net Cash Flow |
|---|---|---|---|---|
| FY23 | ₹11.3 | ₹2.5 | ₹8.8 | ₹6 Cr |
| FY24 | ₹10.2 | ₹1.5 | ₹8.7 | ₹5 Cr |
| FY25 | ₹12.1 | ₹2.2 | ₹9.9 | ₹7 Cr |
Free cash flow positive every year. Very few smallcaps show this kind of discipline.
9. Ratios – Sexy or Stressy?
| Metric | FY25 |
|---|---|
| ROCE | 8.2% |
| ROE | 7.1% |
| OPM | 24% |
| P/E | 15.5x |
| CMP/BV | 1.2x |
| Dividend Yield | 1.7% |
Mediocre ROE, average P/E, and excellent margins. It’s a cigar that doesn’t burn your wallet.
10. P&L Breakdown – Show Me the Money
| Quarter | Revenue (₹ Cr) | Net Profit (₹ Cr) | OPM % |
|---|---|---|---|
| Jun ’24 | ₹14.6 | ₹2.6 | 25% |
| Sep ’24 | ₹15.0 | ₹2.5 | 24% |
| Dec ’24 | ₹15.1 | ₹2.8 | 25% |
| Mar ’25 | ₹15.3 | ₹3.3 | 26% |
Consistent margins. Profits increasing gradually. Nothing flashy, but no shockers either.
11. Peer Comparison
| Company | CMP (₹) | Sales (₹ Cr) | PAT (₹ Cr) | ROE % | CMP/BV | Dividend Yield |
|---|---|---|---|---|---|---|
| VST Industries | ₹293 | ₹1,398 | ₹290 | 16% | 3.8x | 3.4% |
| Godfrey Phillips | ₹9,355 | ₹5,611 | ₹1,153 | 24% | 9.3x | 0.6% |
| NTC Industries | ₹172 | ₹60 | ₹11 | 7% | 1.2x | 1.7% |
Not in the same league, but valuation-wise: NTC is the cheapest of the lot.
12. Miscellaneous – Shareholding, Promoters
- Promoters: 63.3%
- FIIs: 0%
- DIIs: 0%
- Retail/Public: 36.7%
- No major buying/selling since FY23
- Bonus/Debt/Dilution: None. Clean & boring.
13. EduInvesting Verdict™
NTC Industries is like that old typewriter in your dad’s office—well-kept, still works, but not winning any speed contests. Its clean financials, stable margins, and fair valuation make it a respectable cigar in a world of vapes.
Don’t expect fireworks. But if you like safety, dividends, and zero drama, this one’s worth watching.
Metadata
– Written by EduInvesting | 20 July 2025
– Tags: NTC Industries, Smallcap Tobacco, Dividend Stocks, Low P/E, Steady Performer
