N.D. Metal Industries Limited

Basic Materials — Other Industrial Metals & Mining · BSE

₹75.00₹0.00 (0.00%)

DalalBaazaar Score

53 / 100

🟡 Moderate

Verdict

CAUTION

Risk

Moderate

Driven by short-term liabilities exceed short-term assets, micro-cap size, which brings thin liquidity, a very high earnings multiple, which leaves little margin for disappointment.

In simple words: The business is earning a fairly low return on the money invested in it, but sales are shrinking. Short-term liquidity is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:09 pm

Caution warranted. Multiple fundamental metrics — flagged in red below — point to either valuation stretch, leverage risk, or weakening profitability. This doesn't mean avoid the stock outright, but it does mean the burden of proof is on the growth story to justify the current price.

Understanding the Business

Company site ↗

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

What does this company do?

N.D. Metal Industries Limited engages in the manufacturing and trading of non-ferrous metals in India.

IndustryOther Industrial Metals & Mining

SectorBasic Materials

Annual revenue₹0 Cr

How does it make money?

Turns over ₹0 Cr a year. Of every ₹100 of sales, about ₹631 reaches shareholders as profit, with ₹1297 left at the operating level before interest, tax and depreciation.

EBITDA margin1297.0%

Net margin630.7%

Who are its competitors?

The closest listed comparisons in its industry are HINDALCO INDUSTRIES LTD, VEDANTA LIMITED, TATA STEEL LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

HINDALCO INDUSTRIES LTDP/E 12.3x · ROE 12.0%

VEDANTA LIMITEDP/E 10.4x · ROE 18.7%

TATA STEEL LIMITEDP/E 19.8x · ROE 10.8%

What is its competitive advantage?Little sign of one

Returns on capital of 2.4% 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.

ROCE2.4%

ROE7.7%

Peer median ROE12.0%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved -8% while net margin moved -14% 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-8%

Margin effect-14%

DalalBaazaar Score

53/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 2.7% a year
✗ Profit has declined at 7.6% a year
✗ Latest-year revenue growth of -54.3% is below the longer-term trend — momentum is fading

Quality vs. Valuation

Company Quality

54/ 100

Average

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

Valuation

42/ 100

Expensive

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

77.3x

3Y Median

134.8x

39 monthly readings · mean 131.3x · range 50.7x–197.6x

Sector Median

12.3x

median of 3 sector peers

🟢Current valuation is approximately 43% below its 3y median of 134.8x. 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 528% above the peer median of 12.3x.

vs. its own history

Cheap

134.8x median over 39 months · -43%

vs. sector peers

Expensive

12.3x median of 3 peers · +528%

vs. generic bands

Expensive

Above 35x

P/E (Trailing)

77.3x

P/B

5.69x

EV/EBITDA

63.6x

PEG

—

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well4

Margins are improving
EBITDA margin is up from 1113.5% to 1297.0% over 3 years.
Valuation below its historical average
At 77.3x the stock trades 43% below its own median of 134.8x.
Very low debt
Debt/Equity of 0.15x leaves the balance sheet with plenty of headroom.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Free cash flow is negative
The business is not currently covering its capital spending from operations.
Short-term liquidity is tight
Current ratio of 0.63 — near-term obligations exceed near-term assets.

Red Flags

3 items require attention · 3 watch

🟡Free cash flow is negativeFinancial
Free cash flow was -₹1 Cr in the latest year.
🟡Profit is decliningFinancial
Net profit is down 21% over 3 years.
🟡Short-term liquidity is tightFinancial
Current ratio of 0.63 — near-term obligations exceed near-term assets.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 1113.5% to 1297.0%. 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 43% 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.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

A premium to the sector to defend
It trades 528% above the peer median. That premium needs a reason that persists, or it closes.
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.

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

1EBITDA margin holds above 1295%✓ 1297.0%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Free cash flow remains positive✗ -₹1 Cr
Profit that never becomes cash eventually stops being profit.
3Debt / EBITDA stays below 2x✓ 1.7x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
4ROCE stays above 8%✗ 2.4%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.
5Valuation vs its own median of 134.8x✓ 77.3x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

5 / 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

4 good · 2 neutral · 5 weak

Market Cap

₹19 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

77.3x

Expensive

Expensive — verify against sector peers

P/B Ratio

5.69x

Rich

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

EPS (TTM)

₹0.97

Profitable

Profitable on a per-share basis

ROE

7.7%

Weak

Weak capital efficiency

ROCE

2.4%

Weak

Low return on total capital employed

Debt/Equity

0.15x

Low

Conservative leverage

Revenue Growth (YoY)

-54.3%

Shrinking

Sales are contracting

Profit Growth (YoY)

200.0%

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

₹4 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

CMP

₹75

ROA

1.8%

Weak

Assets generate little profit

Operating Margin

183.3%

Good

Healthy core-business profitability

Net Margin

234.0%

Good

Strong bottom-line conversion

Current Ratio

0.63

Tight

Tight short-term liquidity

Beta (vs Nifty)

-0.22

Defensive

Steadier than the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

75.0 / 75.1

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

100.0

Overbought zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹0 Cr	₹0 Cr	₹0 Cr	₹0 Cr	-2.7%
EBITDA	₹0 Cr	₹0 Cr	₹1 Cr	₹0 Cr	+2.3%
EBITDA Margin	1113.5%	728.3%	1020.4%	1297.0%	—
PAT (Net Profit)	₹0 Cr	₹0 Cr	₹0 Cr	₹0 Cr	-7.6%
EPS	₹0.74	₹0.52	₹1.03	₹0.59	-7.3%
ROE	5.0%	3.3%	8.5%	4.6%	—
ROCE	2.0%	1.6%	2.8%	2.4%	—
Total Debt	₹0 Cr	₹0 Cr	₹0 Cr	₹0 Cr	+0.0%
Free Cash Flow	₹2 Cr	-₹0 Cr	₹1 Cr	-₹1 Cr	—

🔴 Revenue has shrunk at 2.7% a year over 3 years.

🟢 EBITDA has grown at 2.3% a year over 3 years.

🟢 EBITDA Margin has risen from 1113.5% to 1297.0% over 3 years (+183.4 pts).

🔴 PAT (Net Profit) has shrunk at 7.6% a year over 3 years.

🔴 EPS has shrunk at 7.3% a year over 3 years.

🟡 ROE has held roughly flat at 4.6% over 3 years.

🟡 ROCE has held roughly flat at 2.4% over 3 years.

🟡 Total Debt has been broadly flat over 3 years (0.0% a year).

🔴 Free Cash Flow has turned negative, from ₹2 Cr to -₹1 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹7 Cr

Total Liabilities

₹3 Cr

Total Debt

₹0 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

-₹1 Cr

Capex

-₹0 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

88.8%

Corporate Actions

Ex-Dividend Date

20 Sept 2007

Peer Comparison

Company	P/E	ROE
HINDALCO INDUSTRIES LTD	12.3x	12.0%
VEDANTA LIMITED	10.4x	18.7%
TATA STEEL LIMITED	19.8x	10.8%

Recent News

6 general

ND Metal Industries passes all resolutions at 40th AGM

scanx.trade, 30 Sept

ND Metal Industries Ltd. Financials – Balance Sheet, Profit & Loss, Cash Flow

Value Research, 31 Aug

A-ONE STEELS INDIA LTD. Stock/Share price , NSE/BSE Forecast News and Live Quotes

Equitymaster, 02 Oct

ND Metal Industries Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 31 Aug

5 Best Metals Stocks for 2026 and How to Invest

The Motley Fool, 16 Aug

ND Metal Industries sets September 23 e-voting cut-off for 40th AGM

scanx.trade, 23 Sept

Watch Items

Revenue growth is negative (-54.3%) on the latest reported period — check if this is one-off or a trend.
Trading very close to its 52-week low — worth checking whether this reflects a temporary setback or a structural problem.
Cross-check against the company's latest quarterly filing / investor presentation before acting.
RSI is in overbought territory — momentum entries here carry more short-term pullback risk.

DalalBaazaar Thesis

🟢Business QualityStrong13/20

🟢Financial HealthStrong14.6/20

🔴GrowthWeak4.1/20

🟡ProfitabilityModerate8.9/15

🔴ValuationDemanding6.7/15

🟡RiskModerate5.2/10

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you.

This thesis breaks if

✓EBITDA margin holds above 1295%1297.0%
✗Free cash flow remains positive-₹1 Cr
✓Debt / EBITDA stays below 2x1.7x
✗ROCE stays above 8%2.4%
✓Valuation vs its own median of 134.8x77.3x today