Nilkanth Resources Limited

Industrials — Specialty Industrial Machinery · BSE

₹229.15−₹6.95 (−2.94%)

DalalBaazaar Score

60 / 100

🟢 Good

Verdict

CAUTION

Risk

High

Driven by negative free cash flow, micro-cap size, which brings thin liquidity, a beta above 1.3, so it swings harder than the index.

In simple words: Strong business and financial position, with both sales and profits growing well. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:01 pm

Understanding the Business

Company site ↗

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

What does this company do?

Nilkanth Resources Limited manufactures roto gravure printing cylinders in India. Its products are used in rotogravure printing, anilox rollers for Flexo, adhesive coating, and decorative printing applications.

IndustrySpecialty Industrial Machinery

SectorIndustrials

Employees4

Who are its competitors?

The closest listed comparisons in its industry are SIEMENS LTD, ABB INDIA LIMITED, LARSEN & TOUBRO LTD., HAVELLS INDIA 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?Some evidence

ROCE of 20.3% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

Peer median ROE17.1%

DalalBaazaar Score

60/ 100

Good

Weighted across six categories. Every point is explained below.

✗ P/E of 40.2x is demanding — it needs sustained high growth to justify
✗ P/B of 6.44x is a steep premium to book

Quality vs. Valuation

Company Quality

71/ 100

Good

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

Valuation

48/ 100

Fair

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

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

40.2x

Sector Median

66.2x

median of 4 sector peers

🟢Against its sector it trades 39% below the peer median of 66.2x.

vs. its own history

Not enough price and earnings history

vs. sector peers

Cheap

66.2x median of 4 peers · -39%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

26.8x

PEG

—

What's Good / What's Bad

🟢 What's Going Well4

Return on equity is rising
ROE has improved from -7.1% to 15.1%.
Return on capital is rising
ROCE has improved from -9.0% to 20.3%.
High return on capital employed
ROCE of 20.3% is the mark of a business that converts capital into profit efficiently.
Very low debt
Debt/Equity of 0.12x leaves the balance sheet with plenty of headroom.

🔴 What Needs Attention0

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

Red Flags

3 items require attention · 2 high · 1 watch

🔴Debt has risen sharplyFinancial
Total debt is up 1667% over 3 years, from ₹0 Cr to ₹3 Cr.
🔴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.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹15 Cr in the latest year.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 20.3% means each rupee reinvested earns well above what capital costs. If the company can keep deploying at this rate, growth creates value rather than just consuming cash.
Cheaper than its peers
It trades 39% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.

🔴 Bear CaseWhat could go wrong?

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
2 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

1Free cash flow remains positive✗ -₹15 Cr
Profit that never becomes cash eventually stops being profit.
2Debt / EBITDA stays below 2x✓ 0.5x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
3ROCE stays above 17%✓ 20.3%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

9 / 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

6 good · 2 neutral · 3 weak

Market Cap

₹160 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

40.2x

Expensive

Expensive — verify against sector peers

P/B Ratio

6.44x

Rich

Steep premium to book — needs high, durable returns to justify

EPS (TTM)

₹5.7

Profitable

Profitable on a per-share basis

ROE

15.1%

Strong

Strong capital efficiency

ROCE

20.3%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.12x

Low

Conservative leverage

Revenue Growth (YoY)

192.6%

Healthy

Healthy top-line growth

Profit Growth (YoY)

608.2%

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

-₹15 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

-0.3%

Weak

Thin margins leave little room for error

Net Margin

48.4%

Good

Strong bottom-line conversion

Current Ratio

4.16

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

1.39

High swing

Swings more than the market in both directions

52W Range Position

80%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

227.4 / 226.7

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

46.1

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
EBITDA	-₹1 Cr	-₹0 Cr	-₹0 Cr	₹6 Cr	—
PAT (Net Profit)	-₹2 Cr	-₹1 Cr	-₹1 Cr	₹4 Cr	—
EPS	₹-2.31	₹-1.23	₹-1.06	₹5.39	—
ROE	-7.1%	-3.9%	-3.5%	15.1%	—
ROCE	-9.0%	-5.0%	-5.0%	20.3%	—
Total Debt	₹0 Cr	₹1 Cr	₹0 Cr	₹3 Cr	+160.5%
Free Cash Flow	-₹0 Cr	-₹1 Cr	₹2 Cr	-₹15 Cr	—

🟢 EBITDA has turned positive, from -₹1 Cr to ₹6 Cr.

🟢 PAT (Net Profit) has turned positive, from -₹2 Cr to ₹4 Cr.

🟢 EPS has turned positive, from ₹-2.31 to ₹5.39.

🟢 ROE has risen from -7.1% to 15.1% over 3 years (+22.2 pts).

🟢 ROCE has risen from -9.0% to 20.3% over 3 years (+29.3 pts).

🔴 Total Debt has grown at 160.5% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹29 Cr

Total Liabilities

₹4 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

-₹15 Cr

Capex

—

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

70.5%

Peer Comparison

Company	P/E	ROE
SIEMENS LTD	88.8x	10.5%
ABB INDIA LIMITED	92.6x	19.1%
LARSEN & TOUBRO LTD.	30.1x	15.2%
HAVELLS INDIA LIMITED	43.5x	17.1%

Recent News

6 general

Nilkanth Resources (BSE:526604) - Stock Analysis

Simply Wall Street, 09 Oct

Lippi Systems shareholders approve name change to Nilkanth Resources

scanx.trade, 30 Sept

Lippi Systems Limited has Changed its Name to Nilkanth Resources Limited

www.marketscreener.com, 03 Oct

Lippi Systems to rebrand as Nilkanth Resources, seek ₹500 crore borrowing limit

scanx.trade, 08 Sept

Neelkanth Mishra appointed Executive Director at the World Bank

BusinessLine, 04 Jun

Lippi Systems approves name change to Nilkanth Resources, shifts to mining

scanx.trade, 27 Aug

Watch Items

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

DalalBaazaar Thesis

StrongBusiness Quality · Financial Health · Profitability

MiddlingGrowth

WeakValuation · Risk

Points for each in the Score ↑

Good business at a fair price

A sound business at a reasonable valuation. Suitable for a long-term holding, with the valuation and the direction of margins worth watching rather than the business itself. 2 high-severity red flags sit above this conclusion and should be read first.

1 of 3 tripwires tripped — Free cash flow remains positive · see Key things to watch ↑