Nexxus Petro Industries Limited

Basic Materials — Specialty Chemicals · BSE

₹64.50₹0.00 (0.00%)

DalalBaazaar Score

61 / 100

🟢 Good

Verdict

CAUTION

Risk

High

Driven by negative free cash flow, micro-cap size, which brings thin liquidity, falling profits.

In simple words: Strong business and financial position, but sales are shrinking. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:06 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 Nexxus Petro Industries Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Nexxus Petro Industries Limited manufactures, trades in, and sells bitumen products in India. It offers bitumen, bitumen emulsions, micro surfacing emulsion, polymer modified bitumen, crumb rubber modified bitumen, and bio-bitumen.

IndustrySpecialty Chemicals

SectorBasic Materials

Employees64

Annual revenue₹257 Cr

How does it make money?

Turns over ₹257 Cr a year. Of every ₹100 of sales, about ₹2 reaches shareholders as profit, with ₹5 left at the operating level before interest, tax and depreciation. Each of its 64 employees supports ₹4.02 Cr of revenue a year, the signature of a capital- or asset-led business.

EBITDA margin4.8%

Net margin2.5%

Revenue / employee₹4.02 Cr

Who are its competitors?

The closest listed comparisons in its industry are ASIAN PAINTS LIMITED, PIDILITE INDUSTRIES LTD, SRF LTD, UPL LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

ASIAN PAINTS LIMITEDP/E 46.9x · ROE 22.3%

PIDILITE INDUSTRIES LTDP/E 57.8x · ROE 24.4%

SRF LTDP/E 33.8x · ROE 15.4%

UPL LIMITEDP/E 21.5x · ROE 6.1%

What is its competitive advantage?The numbers suggest a real one

ROCE has stayed above 15% in every year available and stands at 25.4%. Returns that high normally get competed away; when they persist, something is protecting them, and its ROE of 18.0% against a peer median of 22.3% is consistent with that. What that something is — brand, scale, switching costs, regulation — the accounts cannot tell you.

ROCE25.4%

ROE18.0%

Peer median ROE22.3%

What has been driving growth?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved +81% while net margin moved +76% 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+81%

Margin effect+76%

DalalBaazaar Score

61/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of -0.64 — historically steadier than the index
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

58/ 100

Average

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

Historical Valuation

Current P/E

7.0x

2Y Median

11.3x

26 monthly readings · mean 15.0x · range 6.4x–30.4x

Sector Median

40.4x

median of 4 sector peers

🟢Current valuation is approximately 38% below its 2y median of 11.3x. 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 83% below the peer median of 40.4x.

vs. its own history

Cheap

11.3x median over 26 months · -38%

vs. sector peers

Cheap

40.4x median of 4 peers · -83%

vs. generic bands

Cheap

Below 15x

P/E (Trailing)

7.0x

P/B

1.16x

EV/EBITDA

5.2x

PEG

0.15

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well4

Margins are improving
EBITDA margin is up from 2.5% to 4.8% over 3 years.
High return on capital employed
ROCE of 25.4% is the mark of a business that converts capital into profit efficiently.
Valuation below its historical average
At 7.0x the stock trades 38% below its own median of 11.3x.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention5

Debt is rising
Total debt is up 149% over 3 years — worth checking what it funded.
Free cash flow is negative
The business is not currently covering its capital spending from operations.
Return on equity is falling
ROE has dropped from 75.8% to 16.5% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 106.4% to 25.4% — often a sign of competition or overexpansion.
Receivables growing faster than sales
Receivables are up 439% against revenue growth of 81% — customers are taking longer to pay.

Red Flags

3 items require attention · 3 high

🔴Debt has risen sharplyFinancial
Total debt is up 149% over 3 years, from ₹8 Cr to ₹21 Cr.
🔴Free cash flow negative for 4 yearsFinancial
The business has not covered its capital spending from operations for several years running, which has to be funded externally.
🔴Receivables growing faster than salesFinancial
Receivables up 439% against revenue up 81% — sales are being booked faster than they are collected.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 25.4% 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.
Margin expansion has further to run
EBITDA margin has risen from 2.5% to 4.8%. 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 38% 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 83% 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?

Sales are being booked faster than collected
Receivables are up 439% against revenue up 81%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
Returns on shareholder capital are falling
ROE has dropped from 75.8% to 16.5%. Each rupee of equity earns less than it did, so profit growth increasingly depends on raising more capital rather than on the existing base working harder.
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
3 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

1Revenue growth stays above 16% a year✓ 21.9% CAGR
Latest reported year was -44.3%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 3%✓ 4.8%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹3 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 1.7x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 22%✓ 25.4%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

6 / 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

₹45 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

7.0x

Cheap

Cheap against the generic band

P/B Ratio

1.16x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹9.2

Profitable

Profitable on a per-share basis

ROE

18.0%

Strong

Strong capital efficiency

ROCE

25.4%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.54x

Low

Conservative leverage

Revenue Growth (YoY)

-44.3%

Shrinking

Sales are contracting

Profit Growth (YoY)

-8.6%

Falling

Profits are shrinking

Dividend Yield

None

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

Free Cash Flow

-₹5 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

CMP

₹64.5

ROA

10.5%

Good

Assets are working hard

Operating Margin

5.5%

Average

Average margins

Net Margin

2.4%

Weak

Very little revenue reaches the bottom line

Current Ratio

2.13

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

-0.64

Defensive

Steadier than the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

67.2 / 74.3

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

36.9

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹142 Cr	₹237 Cr	₹303 Cr	₹257 Cr	+21.9%
EBITDA	₹4 Cr	₹7 Cr	₹11 Cr	₹12 Cr	+51.3%
EBITDA Margin	2.5%	2.8%	3.7%	4.8%	—
PAT (Net Profit)	₹2 Cr	₹4 Cr	₹6 Cr	₹6 Cr	+47.1%
EPS	₹2.89	₹5.06	₹10.14	—	—
ROE	75.8%	40.5%	18.9%	16.5%	—
ROCE	106.4%	45.9%	31.9%	25.4%	—
Total Debt	₹8 Cr	₹22 Cr	₹19 Cr	₹21 Cr	+35.5%
Free Cash Flow	-₹4 Cr	-₹10 Cr	-₹12 Cr	-₹3 Cr	—

🟢 Revenue has grown at 21.9% a year over 3 years.

🟢 EBITDA has grown at 51.3% a year over 3 years.

🟢 EBITDA Margin has risen from 2.5% to 4.8% over 3 years (+2.3 pts).

🟢 PAT (Net Profit) has grown at 47.1% a year over 3 years.

🔴 ROE has fallen from 75.8% to 16.5% over 3 years (-59.3 pts).

🔴 ROCE has fallen from 106.4% to 25.4% over 3 years (-81.1 pts).

🔴 Total Debt has grown at 35.5% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹65 Cr

Total Liabilities

₹26 Cr

Total Debt

₹21 Cr

Cash & Equivalents

₹1 Cr

Operating Cash Flow

₹7 Cr

Capex

-₹10 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

75.3%

Peer Comparison

Company	P/E	ROE
ASIAN PAINTS LIMITED	46.9x	22.3%
PIDILITE INDUSTRIES LTD	57.8x	24.4%
SRF LTD	33.8x	15.4%
UPL LIMITED	21.5x	6.1%

Recent News

1 mixed5 general

Nexxus Petro Industries Limite Share Price

Upstox, 08 Oct

Nexxus Petro Industries holds 5th AGM, approves director reappointments

scanx.trade, 29 Sept

Karamtara Engineering Q1 Result: IPO के बाद पहली कमाई दमदार, मुनाफे में **45%** से ज्यादा का उछाल

Whalesbook, 06 OctResults

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

Nexxus Petro Leads India's Shift To Bio-Bitumen

Construction World, 15 Apr

Nexxus Petro Industries reports FY26 PAT of ₹6.39 crore

scanx.trade, 15 Jun

Nexxus Petro Industries Positioned at Forefront of India's Bio-Bitumen Revolution with CSIR-Certified Technology

scanx.trade, 14 Apr

Watch Items

Revenue growth is negative (-44.3%) 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.

DalalBaazaar Thesis

🟡Business QualityAdequate9.6/20

🟡Financial HealthAdequate12/20

🟢GrowthStrong14.9/20

🟡ProfitabilityModerate7.3/15

🟢ValuationAttractive13.2/15

🔴RiskHigh4.4/10

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. 3 high-severity red flags sit above this conclusion and should be read first.

This thesis breaks if

✓Revenue growth stays above 16% a year21.9% CAGR
✓EBITDA margin holds above 3%4.8%
✗Free cash flow remains positive-₹3 Cr
✓Debt / EBITDA stays below 2x1.7x
✓ROCE stays above 22%25.4%