Dolly Khanna portfolio: Dolly Khanna takes a stake in this small cap for the 4th quarter
The shareholding structure for the September quarter suggests that Khanna held 8,012,062 shares or 1.77% of the capital of NCL Industries, compared to 793,806 shares or 1.75% of the capital that she held in the company. to June 30. It owned 7,67,806 shares in cement. maker on March 31 and entered the script in the December 2020 quarter with 4,83,580 shares.
On Wednesday, the script was trading 1.01 percent higher at Rs 231.50 on BSE. At this price, Khanna’s stake was worth around Rs 19 crore.
The stock has returned 120% over the past year and around 326% from the March 2020 lows. It was still trading at 52% off its average price-to-sell ratio on 5 years and 18% discount on its average sliding PE over 5 years.
NCL operates in southern India and around 80 percent of its cement business comes from Andhra Pradesh and Telangana. It has a clinker and crushing capacity of 2.6 million tons and 2.7 million tons, respectively.
NCL has a cement bonded particle board capacity of 90,000 tonnes per year and hydroelectric power plants with a total capacity of 15.75 MW. The company also added a high-end door manufacturing plant with a capacity of 1,000 doors per day.
The abundant availability of limestone in captive mines along with the availability of adequate captive energy helps NCL industries meet 30-35% of its current needs and its advantageous location translates into moderate operational efficiency, said Crisil on last month.
The company has diversified its product profile by venturing into other building materials such as ready-mixed concrete, cement-bonded particle board and doors. The products are marketed under the brands “Nagarjuna Cement”, “Nagarjuna RMC”, “Bison Panels” and “NCLdoors”.
“Net worth and debt are healthy at around Rs 665 crore and 0.43 times, respectively, as of March 31, 2021. Debt protection measures are also healthy with interest coverage and net cash ratios on the total debt of 13.2 times and 0.62 times, respectively, for fiscal year 2021. The company is currently undertaking debt-financed capital expenditures of over Rs 250 crore to increase its cement capacity by 1 MTPA, which is expected to take approximately 18 months after receiving the required approvals. Despite this, the financial risk profile is expected to remain comfortable, “Crisil said last month.