NLC India: Hold Rating Based on Performance

NLC India, a largecap company in the power industry, has recently been downgraded to a 'Hold' by MarketsMOJO. This decision is based on the company's current financial performance and market trends.
Despite a healthy long-term growth rate of 29.78% in operating profit, the company's debt-equity ratio remains high at 1.32 times. However, NLC India has declared positive results for the last three consecutive quarters, with the highest PBT and PAT in the last quarter.

Technically, the stock is in a mildly bullish range and both the MACD and KST technical factors are also bullish. With a ROCE of 8.7, the stock is currently trading at an attractive valuation with a 1.5 enterprise value to capital employed. It is also trading at a discount compared to its average historical valuations.

Institutional investors have shown increasing interest in the company, with a 1.29% increase in their stake over the previous quarter. They hold 14.43% of the company, indicating their confidence in its fundamentals.

NLC India has also shown market-beating performance in the long term, generating 190.77% returns in the last year and outperforming BSE 500 in the last 3 years, 1 year, and 3 months.

However, the company's high debt to EBITDA ratio of 6.55 times raises concerns about its ability to service debt. Additionally, its return on equity (avg) of 9.97% indicates low profitability per unit of shareholders' funds.

Overall, while NLC India has shown promising growth and market performance, its high debt and low profitability may be cause for concern. Investors are advised to hold their positions and monitor the company's performance closely.