Neil Industries Limited

Financial Services — Credit Services · BSE

₹6.63+₹0.50 (+8.16%)

DalalBaazaar Score

68 / 100

🟢 Good

Verdict

NEUTRAL

Risk

Moderate

Driven by 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. Nothing obvious stands out as stretched — the usual checks on business quality and management still apply.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:45 pm

Understanding the Business

Company site ↗

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

What does this company do?

Neil Industries Limited operates as a non-banking finance company primarily in India.

IndustryCredit Services

SectorFinancial Services

Employees7

Annual revenue₹4 Cr

How does it make money?

Turns over ₹4 Cr a year. Of every ₹100 of sales, about ₹38 reaches shareholders as profit, with ₹67 left at the operating level before interest, tax and depreciation. Each of its 7 employees supports ₹56.5 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹56.5 lakh

Who are its competitors?

The closest listed comparisons in its industry are BAJAJ FINANCE LIMITED, STATE BANK OF INDIA, HDFC BANK LTD, ICICI BANK LTD.. 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?Not assessable from these ratios

For a lender, returns on capital are shaped by leverage and funding cost rather than by pricing power, so the usual financial signature of an advantage does not apply. Judge this one on deposit franchise, cost of funds and asset quality — none of which are in this data.

Peer median ROE16.5%

What has been driving growth?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved +32% while net margin moved -39% 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+32%

Margin effect-39%

DalalBaazaar Score

68/ 100

Good

Weighted across six categories. Every point is explained below.

• Revenue CAGR of 9.7% is steady
✗ Profit has declined at 7.1% a year
✗ Profit is compounding slower than revenue — margins are being squeezed as the business grows

Quality vs. Valuation

Company Quality

66/ 100

Good

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

Valuation

88/ 100

Cheap

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

A good business currently available at an undemanding price — the combination this framework is built to look for.

Historical Valuation

Current P/E

7.7x

3Y Median

11.4x

40 monthly readings · mean 11.9x · range 5.4x–20.7x

Sector Median

17.0x

median of 4 sector peers

🟢Current valuation is approximately 32% below its 3y median of 11.4x. 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 55% below the peer median of 17.0x.

vs. its own history

Cheap

11.4x median over 40 months · -32%

vs. sector peers

Cheap

17.0x median of 4 peers · -55%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

6.7x

PEG

0.32

What's Good / What's Bad

🟢 What's Going Well1

Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

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

Red Flags

1 item require attention · 1 high

🔴Significant margin compressionFinancial
EBITDA margin has fallen 16.9 points, from 83.9% to 66.9%.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Priced below its own history
The stock trades 32% 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.
Cheaper than its peers
It trades 55% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
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?

Margins are being competed away
EBITDA margin has fallen from 83.9% to 66.9%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
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 65%✓ 66.9%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Return on equity stays above 8%✗ 2.8%
For a lender this is the cleanest single read on whether the book is being grown profitably.
3Revenue growth stays above 7% a year✓ 9.7% CAGR
Latest reported year was 17.7%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
4Valuation vs its own median of 11.4x✓ 7.7x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

7 / 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

₹13 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

7.7x

Cheap

Cheap against the generic band

P/B Ratio

0.21x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹0.86

Profitable

Profitable on a per-share basis

ROE

2.8%

Weak

Weak capital efficiency

ROCE

3.3%

Weak

Low return on total capital employed

Debt/Equity

7.15x

High

High leverage

Revenue Growth (YoY)

17.7%

Healthy

Healthy top-line growth

Profit Growth (YoY)

24.0%

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

₹2 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

ROA

2.5%

Weak

Assets generate little profit

Operating Margin

79.2%

Good

Healthy core-business profitability

Net Margin

47.7%

Good

Strong bottom-line conversion

Current Ratio

6.83

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

-0.14

Defensive

Steadier than the market

52W Range Position

43%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

6.4 / 6.7

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

56.1

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹3 Cr	₹3 Cr	₹3 Cr	₹4 Cr	+9.7%
EBITDA	₹3 Cr	₹3 Cr	₹2 Cr	₹3 Cr	+1.7%
EBITDA Margin	83.9%	88.0%	76.9%	66.9%	—
PAT (Net Profit)	₹2 Cr	₹3 Cr	₹1 Cr	₹1 Cr	-7.1%
EPS	₹0.95	₹1.28	₹0.61	₹0.76	-7.2%
ROE	3.4%	4.4%	2.0%	2.5%	—
ROCE	4.4%	4.8%	3.0%	3.3%	—
Total Debt	—	—	₹6 Cr	₹5 Cr	—
Free Cash Flow	₹5 Cr	₹0 Cr	-₹3 Cr	₹2 Cr	-29.3%

🟢 Revenue has grown at 9.7% a year over 3 years.

🟡 EBITDA has been broadly flat over 3 years (1.7% a year).

🔴 EBITDA Margin has fallen from 83.9% to 66.9% over 3 years (-16.9 pts).

🔴 PAT (Net Profit) has shrunk at 7.1% a year over 3 years.

🔴 EPS has shrunk at 7.2% a year over 3 years.

🟡 ROE has held roughly flat at 2.5% over 3 years.

🔴 ROCE has fallen from 4.4% to 3.3% over 3 years (-1.1 pts).

🔴 Free Cash Flow has shrunk at 29.3% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹66 Cr

Total Liabilities

₹6 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

₹2 Cr

Capex

—

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

40.9%

Peer Comparison

Company	P/E	ROE
BAJAJ FINANCE LIMITED	30.2x	17.8%
STATE BANK OF INDIA	10.3x	15.2%
HDFC BANK LTD	15.9x	13.8%
ICICI BANK LTD.	18.1x	16.5%

Recent News

1 positive1 mixed1 negative3 general

Neil Industries Ltd Downgraded to Strong Sell Amid Technical and Financial Concerns

MarketsMojo, 12 OctAnalyst view

🔴Potentially negativeAn analyst opinion changing, which moves the price without changing the business.

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

Value Research, 30 Aug

Neil Industries Limited Reports Earnings Results for the Second Quarter and Six Months Ended September 30, 2026

www.marketscreener.com, 12 OctResults

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

Neil Industries passes all resolutions at 43rd AGM held on September 26, 2026

scanx.trade, 26 Sept

Neil Industries Ltd Upgraded to Sell on Technical and Valuation Shifts

MarketsMojo, 13 OctAnalyst view

🟢Potentially positiveAn analyst opinion changing, which moves the price without changing the business.

SOLLFEGE SMART ELECTRONICS LTD. Stock/Share price , NSE/BSE Forecast News and Live Quotes

Equitymaster, 09 Oct

Watch Items

This is a financial-sector business: borrowing is its raw material, not leverage in the usual sense. Debt/Equity and ROCE here aren't comparable to a manufacturer's — read them alongside NIM, GNPA and capital adequacy from the company's own disclosures.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongBusiness Quality · Financial Health · Valuation

MiddlingProfitability · Risk

WeakGrowth

Points for each in the Score ↑

Attractive on both counts

A good business currently available at an undemanding price — the combination this framework exists to look for. The work left is qualitative: whether the advantage the numbers imply is one you can identify and expect to last. 1 high-severity red flag sits above this conclusion and should be read first.

1 of 4 tripwires tripped — Return on equity stays above 8% · see Key things to watch ↑