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Nov 13, 2010

Neyveli Lignite Corporation Ltd - 513683

 

 

Name of Company

Neyveli Lignite Corporation Ltd

BSE Code

513683

NSE Code

NEYVELILIG

ICICI Code

Established

My Take

Like

Headquarters

Chennai/Neyveli

Promoters

Government of India

Story

Sector

Power

Sub-sector

Mining and power production, diversifying into wind as well.

Website

http://www.nlcindia.com/

Positives

Revenues would increase as coal prices and power tariffs increase. A mini ratna. The company has very good NPMs at 25-30%. Very good reserves at 8600 Cr. Regular dividend yield at 0.75%. Can give a big dividend sometime to redistribute the reserves to shareholders if it does not have huge expansion plans. Moderate growth rates- has doubled topline in 5 years. Government has 93% stake. LIC has more than 3% stake.

Negatives

4000 Cr debt which is almost equal to FY10 revenues.

Peers

News

Price @ blogged

152 (13-Nov-10)

Cost of company

25K cr reserves for a 25-30% NPM company with a FY10 profit at 1200 Cr and reserves at 8600 Cr. It has debt of 4000 Cr. Currently around 21 times.

 

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