Art Nirman Limited

Real Estate — Real Estate - Development · NSE

₹38.17−₹0.91 (−2.33%)

DalalBaazaar Score

40 / 100

🟡 Moderate

Verdict

CAUTION

Risk

Very High

Driven by high debt relative to equity, negative free cash flow, micro-cap size, which brings thin liquidity.

In simple words: The business is earning a fairly low return on the money invested in it, with both sales and profits growing well. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 8:28 pm

Understanding the Business

Company site ↗

The 60-second version of Art Nirman Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Art Nirman Limited engages in the real estate development and allied activities in India. The company is involved in the construction and development of residential, commercial, and plotting projects.

IndustryReal Estate - Development

SectorReal Estate

Employees20

Annual revenue₹27 Cr

How does it make money?

Turns over ₹27 Cr a year. Of every ₹100 of sales, about ₹7 reaches shareholders as profit, with ₹13 left at the operating level before interest, tax and depreciation. Each of its 20 employees supports ₹1.37 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹1.37 Cr

Who are its competitors?

The closest listed comparisons in its industry are DLF LIMITED, GODREJ PROPERTIES LTD, OBEROI REALTY LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Little sign of one

Returns on capital of 5.3% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

Peer median ROE10.3%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved -25% while net margin moved -124% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect-25%

Margin effect-124%

DalalBaazaar Score

40/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 9.3% a year

Quality vs. Valuation

Company Quality

38/ 100

Weak

How good the business is, ignoring the share price entirely.

Valuation

45/ 100

Fair

What you are being asked to pay, ignoring how good the business is.

Weak on business quality and not cheap enough to compensate.

Historical Valuation

Current P/E

74.8x

3Y Median

107.0x

40 monthly readings · mean 496.2x · range 36.7x–1912.5x

Sector Median

30.2x

median of 3 sector peers

🟢Current valuation is approximately 30% below its 3y median of 107.0x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

⚠️Against its sector it trades 148% above the peer median of 30.2x.

vs. its own history

Cheap

107.0x median over 40 months · -30%

vs. sector peers

Expensive

30.2x median of 3 peers · +148%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

31.5x

PEG

—

What's Good / What's Bad

🟢 What's Going Well3

Margins are improving
EBITDA margin is up from -26.9% to 13.1% over 3 years.
Return on equity is rising
ROE has improved from -32.3% to 5.3%.
Return on capital is rising
ROCE has improved from -26.6% to 5.3%.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

5 items require attention · 4 high · 1 watch

🔴Debt has risen sharplyFinancial
Total debt is up 7851% over 3 years, from ₹0 Cr to ₹18 Cr.
🔴High leverageFinancial
Debt/Equity of 1.96x — earnings must service borrowings before shareholders see anything.
🔴Profit up while operating cash flow fallsFinancial
Reported profit rose but cash generated by operations declined — worth checking whether earnings are being supported by non-cash items or working capital.
🔴Inventory building faster than salesFinancial
Inventory up 413% against revenue up -25% — stock may not be moving.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹13 Cr in the latest year.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from -26.9% to 13.1%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Priced below its own history
The stock trades 30% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.

🔴 Bear CaseWhat could go wrong?

The debt load needs earnings to hold up
Debt is 5.0x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
A premium to the sector to defend
It trades 148% above the peer median. That premium needs a reason that persists, or it closes.
Earnings are hard to forecast
Profit has swung sharply from year to year, so any single year — good or bad — is a weak guide to the next. Cyclical earnings deserve lower multiples for that reason.
Size brings its own risk
Micro Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.
Several serious flags at once
4 high-severity checks triggered. Individually each has an explanation; together they raise the chance that something structural is wrong rather than a one-off.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1EBITDA margin holds above 11%✓ 13.1%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA falls below 3x✗ 5.0x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
3Free cash flow remains positive✗ -₹13 Cr
Profit that never becomes cash eventually stops being profit.
4Interest cover stays above 3x✗ 2.8x
How much operating profit can fall before interest stops being comfortably covered.
5ROCE stays above 8%✗ 5.3%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

4 / 11 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✗ Generates positive free cash flow
✗ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✗ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

3 good · 3 neutral · 5 weak

Market Cap

₹95 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

74.8x

Expensive

Expensive — verify against sector peers

P/B Ratio

2.29x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹0.51

Profitable

Profitable on a per-share basis

ROE

5.3%

Weak

Weak capital efficiency

ROCE

5.3%

Weak

Low return on total capital employed

Debt/Equity

1.96x

High

High leverage

Revenue Growth (YoY)

41.0%

Healthy

Healthy top-line growth

Profit Growth (YoY)

69.0%

Healthy

Profits growing at a healthy clip

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

-₹13 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

-10.9%

Weak

Thin margins leave little room for error

Net Margin

1.2%

Weak

Very little revenue reaches the bottom line

Current Ratio

5.57

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.70

Defensive

Steadier than the market

52W Range Position

23%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

39.5 / 40.3

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

46.9

Neutral momentum

Financial Trend (4-Year)

Metric	FY22	FY23	FY24	FY25	3Y CAGR
Revenue	₹37 Cr	₹20 Cr	₹34 Cr	₹27 Cr	-9.3%
EBITDA	-₹10 Cr	₹1 Cr	₹2 Cr	₹4 Cr	—
EBITDA Margin	-26.9%	5.1%	6.5%	13.1%	—
PAT (Net Profit)	-₹11 Cr	₹0 Cr	₹1 Cr	₹2 Cr	—
EPS	₹-4.41	₹0.04	₹0.47	₹0.8	—
ROE	-32.3%	0.3%	3.3%	5.3%	—
ROCE	-26.6%	0.7%	4.0%	5.3%	—
Total Debt	₹0 Cr	₹3 Cr	₹3 Cr	₹18 Cr	+330.0%
Free Cash Flow	₹9 Cr	-₹7 Cr	₹2 Cr	-₹13 Cr	—

🔴 Revenue has shrunk at 9.3% a year over 3 years.

🟢 EBITDA has turned positive, from -₹10 Cr to ₹4 Cr.

🟢 EBITDA Margin has risen from -26.9% to 13.1% over 3 years (+40.0 pts).

🟢 PAT (Net Profit) has turned positive, from -₹11 Cr to ₹2 Cr.

🟢 EPS has turned positive, from ₹-4.41 to ₹0.8.

🟢 ROE has risen from -32.3% to 5.3% over 3 years (+37.7 pts).

🟢 ROCE has risen from -26.6% to 5.3% over 3 years (+31.9 pts).

🔴 Total Debt has grown at 330.0% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹9 Cr to -₹13 Cr.

Balance Sheet & Cash Flow — FY2025

Total Assets

₹69 Cr

Total Liabilities

₹32 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

-₹13 Cr

Capex

-₹0 Cr

Peer Comparison

Company	P/E	ROE
DLF LIMITED	36.6x	10.3%
GODREJ PROPERTIES LTD	30.2x	8.4%
OBEROI REALTY LIMITED	23.5x	14.7%

Recent News

2 mixed4 general

Art Nirman Share Price Fall Streak: Fundamental View

Univest, 15 OctPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

Momentum Stocks: Udayshivakumar Infra, Art Nirman, Vikran Engineering rally on strong momentum

Moneycontrol.com, 13 Oct

Art Nirman NSE:ARTNIRMAN Depository Certificate Q2 2026

Kalkine India, 14 OctResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Volume Gainers October 13, 2026 at 12:00 PM IST

HDFC Sky, 13 Oct

Art Nirman Ltd. Financials – Balance Sheet, Profit & Loss, Cash Flow

Value Research, 02 Sept

Low-Priced Movers in View as Thin Trading Lifts Volatility

Kalkine India, 14 Oct

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

MiddlingBusiness Quality · Profitability · Valuation

WeakFinancial Health · Growth · Risk

Points for each in the Score ↑

Weak on the fundamentals

Poor scores on business quality without a price low enough to compensate. There is no obvious argument for owning this over a stronger company at a similar valuation. 4 high-severity red flags sit above this conclusion and should be read first.

4 of 5 tripwires tripped — Debt / EBITDA falls below 3x; Free cash flow remains positive; Interest cover stays above 3x; ROCE stays above 8% · see Key things to watch ↑