This article delves into the NSL Company, focusing on the upcoming announcement of its Quarter 1 results – the first significant event post-IPO. We will explore the company’s IPO response, its historical financial performance, key growth metrics, and the current shareholding structure. Stay informed by subscribing for daily IPO and Grey Market Premium updates, and for timely notifications, consider joining our Telegram group via the link in the comments.
NSL IPO Subscription Success
The NSL IPO witnessed an exceptionally strong response across all investor categories. The Qualified Institutional Buyers (QIB) category was subscribed approximately 104 times, demonstrating significant institutional interest. High Net Worth Individual (HNI) category saw a subscription of about 35 times, with the Big HNI segment reaching approximately 37.73 times. The Small HNI category was subscribed 29.47 times.
Retail investors also showed strong participation, subscribing 7.76 times, while the Employee category was subscribed around 50 times. Overall, the IPO was subscribed a total of 41 times. The IPO received approximately 52 lakh applications, indicating a record inflow of funds by the end of the third day. The positive response from QIBs significantly contributed to the strong momentum seen both during listing and in the subsequent days.
Financial Performance: A Look at Growth
Analyzing the company’s revenue and sales figures, NSL has shown consistent growth. Sales were 761 crore in 2022, rising to 1022 crore in 2023, 1268 crore in 2024, and projected at 1420 crore in 2025. Expenses have increased proportionally with revenue.
The company’s Operating Profit Margin (OPM) has shown fluctuations, starting at 31%, then 25%, 22%, and currently standing at 26%. Other income is reported at 117 crore, with the operating profit margin consistently improving.
Net profit, post-tax, has also seen steady growth, from 225 crore, then 189 crore, 213 crore, 235 crore, 275 crore, and finally 343 crore. This reflects consistent year-on-year growth. In the upcoming Q1 results, it will be crucial to observe if the operating profit margin exceeds 26%, which would be a positive indicator. An OPM above 30% would be considered outstanding, showcasing excellent profitability.
Key Financial Ratios & Growth Metrics
NSL’s growth metrics further underscore its strong performance:
- Compound Sales Growth:
- Past 3 years: 23% CAGR
- Trailing 12 months (TTM): 34%
- Compound Profit Growth:
- Past 5 years: 21% CAGR
- Past 3 years: 17%
- Trailing 12 months (TTM): 25%
- Return on Equity (ROE): Consistently around 18%, 17%, and 18% over various periods.
Shareholding Structure: A Positive Outlook
Recent updates on NSL’s shareholding reveal a significant institutional presence. Foreign Institutional Investors (FIIs) hold 15% of the company’s shares, while Domestic Institutional Investors (DIIs) hold 44%. Public shareholding accounts for 40%. Within the public holding, a notable 15% stake is held by NSE, meaning approximately 25% of the shares are held by other public investors. Overall, a substantial 85% stake is held by large institutional players like FIIs and DIIs, which is considered a positive indication for the company and has contributed to short-term momentum. Despite 52 lakh applications in the IPO, the number of shareholders currently stands at approximately 10,357.
Anticipating NSL’s Q1 Results
The company’s Quarter 1 results are scheduled to be reported on August 12th, which falls on Tuesday of the upcoming week. This announcement is highly anticipated as it will reveal any fundamental changes in the company’s performance, along with its future commentary and growth guidance. Observing both these parameters will be important. Updates regarding the quarterly numbers will be provided through video.
Post-Listing Performance
Following its listing, NSL has displayed strong market momentum. It saw a positive movement on its listing day, followed by a 20% upper circuit the next day. On Friday, the stock closed more than 15% higher. The upcoming Q1 results on August 12th will therefore be a very important event for the company’s trajectory.
We encourage you to share your opinion on NSL Company in the comments section. Also, let us know if you have sold or are holding your shares.
