NCL Buildtek Unlisted Shares
Buy - ₹200.00
Sell - ₹250.00
About NCL Buildtek Unlisted Shares
1. About NCL Buildtek
NCL Buildtek is a leading name in the building materials sector in India, with a strong presence in the plaster and paint market. The company is the sole licensee in India for ICP (International Coating Products) of Sweden, known for its premium range of Alltek Plasters. These plasters are engineered to withstand diverse climatic conditions and are highly regarded for their durability and high performance across markets such as Europe, Africa, Middle East, and Asia. Alltek Plasters are made with natural minerals like marble powder, sand, and quartz, bound with acrylic medium for enhanced quality, offering qualities such as anti-cracking, anti-foaming, anti-fungal, and anti-rusting.
NCL Buildtek has extended its product offerings to include water-based emulsion paints in over 300 shades, suitable for both interior and exterior applications. The company also manufactures cement primers tailored to meet specific demands in the Indian market. With its strong product portfolio and focus on innovation, NCL Buildtek has become an established player in the building material industry.
2. Business Divisions
NCL Buildtek operates in two primary segments that contribute to its growth:
- Plaster and Paints Division:
NCL Buildtek’s flagship product, Alltek Plasters, is designed for use in exterior applications, offering exceptional durability and protection. These plasters come in various shades and are known for their ability to withstand harsh environmental conditions. The company also produces paints and primers that cater to both interior and exterior requirements, offering a wide range of options for customers in residential, commercial, and industrial projects. - Construction Chemicals and Solutions:
In addition to its core plaster and paint products, NCL Buildtek is involved in the manufacturing of construction chemicals that provide enhanced functionality to the building materials used in construction. These products include waterproofing solutions, adhesives, and surface protection coatings, which help improve the overall lifespan and quality of buildings.
3. Financial Highlights:
Here are the key financial highlights for NCL Buildtek Unlisted Shares:
- Revenue Growth:
NCL Buildtek achieved revenue growth of 10.56% in FY2022-23, reaching ₹450 crores compared to ₹407 crores in FY2022. This growth reflects the increasing demand for the company’s products, particularly in the plaster and paints segments. - Profitability Improvement:
The company saw a significant improvement in profitability in FY2024, with a net profit (PAT) of ₹27 crores, up from ₹19 crores in FY2023. The net profit margin (NPM) improved to 6.21%, reflecting better cost management and operational efficiency. - Earnings Per Share (EPS):
NCL Buildtek’s Earnings Per Share (EPS) for FY2024 stood at ₹23.36, a substantial increase from ₹16.52 in FY2023, showcasing the company’s ability to generate solid earnings for shareholders despite a challenging economic landscape. - Improved Operational Efficiency:
The company posted a rise in operating profit margin (OPM) to 11.26% in FY2024, up from 9.56% in FY2023. This increase signifies effective cost management and a focus on enhancing profitability through operational improvements. - Strong Balance Sheet:
As of FY2024, NCL Buildtek’s total assets amounted to ₹418 crores, reflecting stability and financial strength. The company’s reserves grew to ₹181 crores in FY2024, and its debt-to-equity ratio stands at a manageable 0.44, indicating a solid financial position with controlled debt levels.
Disclaimer*This research has been conducted on available data. Investors are advised to perform their own research and due diligence before making any investment decisions. We are not responsible for any financial losses or inaccuracies in the data provided
Pros
- Strong Product Portfolio: High-quality, unique products like Alltek Plasters and textured paints differentiate the brand in the market.
- Growing Revenue and Profitability: Consistent revenue growth and improved profitability reflect strong market demand and operational efficiency.
- Strategic License Agreement: Exclusive agreement with ICP Sweden boosts market position with no local competition for premium products.
Cons
- Profitability Pressures: Rising raw material costs and inflation have negatively impacted margins, particularly in FY2024.
- Revenue Decline in Past Years: Slight revenue decline in FY2023 raises concerns over potential slowdown in market demand.
- Dependence on Raw Material Costs: Vulnerability to raw material price fluctuations could impact profitability and margins.
