Stock to Watch Out: On Verge of 5-Month Long Consolidation Breakout – NLC India

Diverse Operations Across India

NLC India operates lignite and coal mines and thermal power stations in Neyveli and Tuticorin (NTPL) in Tamil Nadu, Barsingsar in Rajasthan, and Odisha. The company supplies power to state utilities in Tamil Nadu, Telangana, Rajasthan, Andhra Pradesh, Kerala, Karnataka, and the Union Territory of Puducherry.

Significant Mining and Power Generation Capacity

NLC India boasts four lignite mines and one coal block with a combined mining capacity of 50.1 MTPA. The company operates six thermal power stations with a combined generation capacity of 4,640 MW. Additionally, NLC runs a 1,380.06-MW solar power plant and a 51-MW wind power plant. This diverse portfolio earned the company Navratna status in fiscal 2011.

Financial Performance and Recent Stock Movements

On a consolidated basis, NLC India reported a profit after tax (PAT) of Rs 1,868 crore for fiscal 2024, with revenue from operations amounting to Rs 12,999 crore, as per the company’s abridged financial statement.

Recently, NLC India’s shares jumped 5%, trading near their 52-week high. The stock reached this peak in the first week of February this year, followed by a corrective phase, where prices declined to the Rs 193-195 level. This zone has since emerged as a crucial support level. The stock is now on the verge of breaking out of a 5-month-long consolidation pattern, with a potential breakout above the Rs 293-295 level.

Technical Indicators Signal Positive Momentum

Currently, NLC India is trading above its key moving averages. The daily MACD is pointing northward, sustaining above its nine-period average, which indicates a positive bias. The daily 14-period RSI is rebounding after forming a base at the nine-period average, further supporting the positive outlook for the stock.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. The information is based on various secondary sources on the internet and is subject to change. Please consult with a financial expert before making investment decisions.