Trade Setup: Navratna PSU Stock NLC India Sets Dividend At 15%, Technicals Signal Bullish Momentum; Buy?

Formerly known as Neyveli Lignite Corporation India Limited, NLC India Limited (NLCIL) is a Central Public Sector Undertaking (CPSE) in India that specializes in lignite mining and generating electricity, especially from renewable sources. The Ministry of Coal has administrative authority over this Navratna CPSE. In India, NLCIL is regarded as a Navratna CPSE and a pioneer in the production of renewable energy. Tamil Nadu, Andhra Pradesh, Karnataka, Kerala, Telangana, Rajasthan, and the Union Territory of Puducherry are among the states that receive energy from NLCIL. Renewable energy, electricity generation, and mining are all part of the company's portfolio.

NLC India Dividend

The Board of Directors considered and approved "Recommendation of Final Dividend of 15.00% (i.e. Rs.1.50 per equity share) for the Financial Year 2024-25, subject to C&AG Audit and approval of Members at the ensuing Annual General Meeting. The details of closure of Register of Members and Share Transfer Books/Record date and date on which the said Final dividend shall be paid/dispatched will be intimated in due course after fixing the date of Annual General Meeting," said the PSU company in a stock exchange filing.

NLC India Q4 Results

The government-owned NLC India reported a net profit of Rs 468.46 crore for the March quarter (Q4FY25), up 311% from Rs 114 crore in the same quarter of the previous fiscal year. The net revenue fell year on year to Rs 3,972 crore in Q4FY25 from Rs 4,034 crore in Q4FY24. In the fourth quarter of FY25, the firm recorded an EBITDA of Rs 997.26 crore, which corresponds to an EBITDA margin of 25.11%. EBITDA was higher at Rs 1,096.04 crore with an EBITDA margin of 27.17% for the quarter that ended on March 31, 2024 (Q4FY24). On a consolidated basis, net profit increased 41.38% to Rs 2621.36 crore for the entire year FY25, compared to Rs 1854.08 crore for the year that ended in March 2024. Compared to Rs 13001.33 crore in the year ending March 2024, sales increased 17.55% to Rs 15282.96 crore in the year ending March 2025 or FY25.

NLC India Share Price Target

"NLC India has formed a base around ₹235 and is now testing resistance near ₹245. A breakout above ₹245 could lead to a move toward ₹260. On the downside, support remains at ₹235 and then at ₹225. The stock is trading above its 20-day moving average, suggesting short-term strength. Traders may look to buy on dips toward ₹240 with a stop-loss at ₹235, or initiate positions above ₹245 for targets of ₹255-₹260. Overall, the chart structure favors the bulls if key levels hold," commented Riyank Arora - Technical Analyst - Mehta Equities Limited.

Disclaimer

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