Power Generation Company's Price Jumps After Winning Strategic Mineral Blocks in Chhattisgarh
Year-to-date, the stock has posted a modest gain of 1.08 per cent, while over the last 12 months it has delivered returns of 6.36 per cent.
NLC India Limited’s shares surged following the company’s announcement of winning two critical mineral blocks in Chhattisgarh. Year-to-date, the stock has posted a modest gain of 1.08 per cent, while over the last 12 months it has delivered returns of 6.36 per cent. In the past three months, the stock generated more robust returns of 15.47 per cent, drawing attention from investors on the bourses.
NLC India, a Navratna Government of India enterprise, was declared the preferred bidder for two strategic mineral blocks: the Semhardih Phosphorite and Limestone Block and the Raipura Phosphorite and Limestone Block. Both blocks are situated in Balod district of Chhattisgarh. These blocks were auctioned in a recent e-auction held by the Ministry of Mines, Government of India, on May 15 and May 16, 2025. Securing these mineral blocks is a significant step for NLC India as it aims to strengthen its presence in the mining sector, complementing its core operations in lignite mining and power generation.
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The company’s strong Quarterly Results have supported investor confidence. For the quarter ended March 2025, NLC India reported revenue from operations of Rs 3,836 crore, up by 8.34 per cent year-on-year from Rs 3,540.64 crore in the same quarter last year. More notably, profit after tax jumped sharply by 311.67 per cent to Rs 468.36 crore compared to Rs 113.77 crore in the March 2024 quarter.
For the full financial year ending March 2025, the company recorded revenue of Rs 15,282.96 crore, representing an annual growth of 17.55 per cent from Rs 13,001.33 crore in FY24. Profit after tax for the year also rose significantly by 45.31 per cent to Rs 2,713.37 crore from Rs 1,867.32 crore in the previous fiscal year. These strong numbers highlight NLC India’s improving operational performance and its growing contribution to the power and mining sectors.
NLC India operates primarily in lignite mining and power generation, including renewable energy sources. As a Large-Cap, Navratna government corporation under the Ministry of Coal, it plays a critical role in India’s fossil fuel and thermal power generation landscape. The recent acquisition of critical mineral blocks is expected to diversify the company’s resource base, potentially contributing to long-term growth.
While the stock has not yet achieved multibagger status, its recent price momentum and strategic expansions have made it a notable pick in the Mid-Cap to large-cap segment. Investors should watch for upcoming quarterly results and announcements such as dividends, bonus issues, or rights offerings that could impact stock performance.
Disclaimer: The article is for informational purposes only and not investment advice.