NLC India vs NTPC Which Is More Profitable?

NLC India and NTPC are two prominent companies in the power sector of India. NLC India Limited, formerly Neyveli Lignite Corporation, is involved in the generation of thermal power and lignite mining. On the other hand, NTPC Limited is India's largest power utility company, engaged in the generation and distribution of electricity. Both companies are publicly listed on the stock exchange and are considered blue-chip stocks in the market. Investors often compare the performance of NLC India and NTPC stocks to make informed investment decisions.

NLC India or NTPC?

When comparing NLC India and NTPC, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between NLC India and NTPC.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. NLC India has a dividend yield of 1.12%, while NTPC has a dividend yield of 2.43%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. NLC India reports a 5-year dividend growth of -4.90% year and a payout ratio of 0.00%. On the other hand, NTPC reports a 5-year dividend growth of 13.16% year and a payout ratio of 0.00%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with NLC India P/E ratio at 18.78 and NTPC's P/E ratio at 16.25. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. NLC India P/B ratio is 1.94 while NTPC's P/B ratio is 2.13.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, NLC India has seen a 5-year revenue growth of 0.42%, while NTPC's is 0.90%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with NLC India's ROE at 10.10% and NTPC's ROE at 13.54%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ₹266.00 for NLC India and ₹367.75 for NTPC. Over the past year, NLC India's prices ranged from ₹180.80 to ₹311.80, with a yearly change of 72.46%. NTPC's prices fluctuated between ₹280.85 and ₹448.45, with a yearly change of 59.68%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.