Thursday, May 13, 2021

NACL Industries Ltd ( 524709 )- Healthy gross cash accruals strengthening Balance Sheet

NACL Industries Ltd ( 524709 )  closes   at 47.35 with  a  Loss  of   - 0.60 %   on    12-May-2021  with formation of  a  Large Red  Candle    on Daily  Price Chart.

About the Company : NACL Industries Limited, formerly Nagarjuna Agrichem Limited, is holding company, which is engaged in the business of agri inputs. The Company is involved in the business of crop protection. It manufactures technicals (active ingredient (AI)) and formulations. It manufactures pesticides, insecticides, acaricides, herbicides, fungicides and other plant growth chemicals. Its Formulation Business is primarily in the Indian Market. It has a range of branded formulations. It also exports technicals and formulations, and does toll manufacture for various companies. It manufactures a range of technicals, such as Acephate, Myclobutanil, Profenofos and Pretilachlor. It offers insecticides, including Cannon, Conserve and Dimite; fungicides, including Nagarjuna Mass Plus and Nagarjuna Combi Plus; herbicides, including Eraze, Point and Rhino, and plant growth regulators, including Nagarjuna Nutri G and Nagarjuna Nutri Plus.

Sector Update : Positive

Strength :  1. Healthy gross cash accruals, improvement in liquidity marked by reduced reliance on working capital borrowings due to efficient working capital management while maintaining healthy cash and liquid funds.2. Introduction of new products

Financials : NACL Industries Ltd has posted Net Sales / Revenue   of 1015.00 Cr & Net Profit of 17.00 Cr in FY2020 and expected to post Net Sales / Revenue   of 1138 Cr & Net Profit  of 38 Cr in FY2021 .

Valuations  : The Company is now Trading at X 1.50  of its  valuations ( last 4Quaters earnings considered here) with ~50 % premium .

Margin of Safety (1Yr Bond Yield: Value>1 ) is now  1.1  which  makes is. The  Equity Value Per Share ( Enterprise Value Method ) is  41.50

Whats  best in It   : NACL Industries Ltd  is now available at EPS of  0.87 (FY2020), which will improve to 1.98 in  FY2021, Return on Equity is 5.22% , ROA is 3.63%, Book Value per Share is 18.50 and Cos.  Has paid dividend of 0.10 per share in FY2020.

If We factor its earnings/valuations, its Price arrives at 65 with consideration FY2021 earnings, 85 with consideration FY2022 earnings & 110 with consideration FY2023 earnings

Disclaimer : We are / may going to take exposure shortly.

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Data Source NSE Website | Screener.In  | Capital Line Money Control |

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