So I decided to do a comparison of shares between a couple of Australian companies operating in India to see where NSL stands against them in market value.
The three shares are NSL Consolidated (ASX:NSL), Environmental Clean Technologies (ASX:ESI) and LWP Technologies (ASX:LWP).
Now NSL and ESI have more in common than either if the two do with LWP, but I thought it would make for a good example.
Just for a bit of background.
ESI are in the throes of signing a tripartite agreement with NMDC and NLC to for the advancement of its Coldry to demonstration stage and Matmor to pilot stage.
There are seven phases, as demonstrated below:
View attachment 89571
LWP are in the throes of starting up their kilns (takes several days) to test production of their flyash proppant in Queensland at their pilot plant capable or producing 3000 tonnes per annum.
From the horses mouth, what do these companies do?
View attachment 89572
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View attachment 89573
So what are the main points of difference in the stock prices of these three Australian companies trying to do business in India? (I know LWP are trying to crack the US market, but they were trying to manufacture in India I believe.)
|
Column 1 |
Column 2 |
Column 3 |
Column 4 |
| 1 |
Stock
|
|
|
|
| 2 |
ESI
|
|
|
|
| 3 |
LWP
|
|
|
|
| 4 |
NSL
|
|
|
|
| 5 |
52 Week High
|
|
|
|
| 6 |
2.8c
|
|
|
|
| 7 |
1.6c
|
|
|
|
| 8 |
1.7c
|
|
|
|
| 9 |
52 Week Low
|
|
|
|
| 10 |
0.6c
|
|
|
|
| 11 |
0.8c
|
|
|
|
| 12 |
0.3c
|
|
|
|
| 13 |
Market Capital
|
|
|
|
| 14 |
$40 million
|
|
|
|
| 15 |
$31 million
|
|
|
|
| 16 |
$9 million
|
|
|
|
| 17 |
Current Price
|
|
|
|
| 18 |
1.6c
|
|
|
|
| 19 |
0.8c
|
|
|
|
| 20 |
1.1c
|
|
|
|
Looking at these, it is evident that NSL is priced well below the others. Both ESI and LWP are still in the development stages of their technology. NSL is beginning production this week.
LWP is at its lowest in a year, half of its high and its market capital is still over three times as much as NSL.
How do the company financials compare for the last quarter? (ESI have not supplied a quarterly)
|
Column 1 |
Column 2 |
Column 3 |
| 1 |
Stock
|
|
|
| 2 |
LWP
|
|
|
| 3 |
NSL
|
|
|
| 4 |
Operating Investments
|
|
|
| 5 |
$603,000
|
|
|
| 6 |
$0
|
|
|
| 7 |
Operating Expenses
|
|
|
| 8 |
$681,000
|
|
|
| 9 |
$552,000
|
|
|
| 10 |
Director Fees
|
|
|
| 11 |
$416,000
|
|
|
| 12 |
$102,000
|
|
|
| 13 |
Cash on hand
|
|
|
| 14 |
$3 million
|
|
|
| 15 |
$200,000
|
|
|
All three are hoping to become big players in billion dollar markets. ESI are quite far away from commercial production. LWP are hoping to find a JV partner once they are ready to begin production in Q3 this year. NSL are starting production this week.
Its near impossible to compare companies with different products, different end goals and different paths ahead of them, but in terms of potential and the likelihood of reaching production, NSL seems like a much closer and better choice to me.
At the very least, NSL is significantly undervalued compared to ESI and LWP.
