Axis Securities today initiated coverage on the PSU company, NLC India with a BUY recommendation and a target price of Rs 340/share, representing a potential upside of 20% from the current market price (CMP). NLC India share price currently is at Rs 294 on the NSE. As a Navratna CPSE with significant operations in lignite and coal mining, power generation, and renewable energy, NLCIL is well-positioned to leverage its expansive growth plans, said the domestic brokerage firm.
“NLCIL’s ambitious capacity expansion plans are poised to drive substantial growth. The company aims to increase its mining capacity from 50 MTPA to 102 MTPA and its thermal power capacity from 4,640 MW to 10,465 MW by 2030. Additionally, NLCIL plans to expand its renewable energy (RE) capacity from 1,431 MW to 8,059 MW. These strategic expansions will necessitate a significant Capex of Rs 1 Lc Cr and will enhance the company’s growth prospects and market position in the coming years,” said Axis Securities.
According to the brokerage firm, NLCIL is also focusing on expanding its renewable energy and commercial mining operations. The company further plans to significantly boost its RE capacity to align with the government’s target of 50% renewables by 2030. Additionally, the brokerage says, through commercial coal e-auctions, NLCIL has secured significant mining assets, such as the North Dhadu (3 MTPA) and Machhakata (30 MTPA) mines. “This diversification will enhance revenue streams and mitigate execution risks associated with thermal power expansion,” said Axis Securites.
