N G Industries LTD

Healthcare — Medical Care Facilities · BSE

₹102.60−₹4.55 (−4.25%)

DalalBaazaar Score

44 / 100

🟡 Moderate

Verdict

CAUTION

Risk

High

Driven by high debt relative to equity, 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, 6:53 pm

Understanding the Business

Company site ↗

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

What does this company do?

N G Industries LTD provides various healthcare services in India.

IndustryMedical Care Facilities

SectorHealthcare

Employees64

Annual revenue₹16 Cr

How does it make money?

Turns over ₹16 Cr a year. Of every ₹100 of sales, about ₹11 reaches shareholders as profit, with ₹16 left at the operating level before interest, tax and depreciation. Each of its 64 employees supports ₹25.6 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹25.6 lakh

Who are its competitors?

The closest listed comparisons in its industry are APOLLO HOSPITALS ENTER. L, SUN PHARMACEUTICAL IND L, CIPLA 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?Little sign of one

Returns on capital of 6.6% 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 ROE14.5%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved -12% 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-12%

Margin effect-76%

DalalBaazaar Score

44/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 4.3% a year
✗ Profit has declined at 40.7% a year

Quality vs. Valuation

Company Quality

41/ 100

Weak

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

Valuation

61/ 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

17.8x

3Y Median

6.8x

40 monthly readings · mean 9.0x · range 4.9x–22.0x

Sector Median

34.9x

median of 3 sector peers

⚠️Current valuation is approximately 162% above its 3y median of 6.8x. Paying more than usual needs a reason — faster growth, a better balance sheet, or a re-rating you believe in.

🟢Against its sector it trades 49% below the peer median of 34.9x.

vs. its own history

Expensive

6.8x median over 40 months · +162%

vs. sector peers

Cheap

34.9x median of 3 peers · -49%

vs. generic bands

Fair

15x–35x

EV/EBITDA

13.1x

PEG

—

What's Good / What's Bad

🟢 What's Going Well2

Margins are improving
EBITDA margin is up from 11.8% to 16.1% over 3 years.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 29.5% to 5.2% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 34.3% to 6.6% — often a sign of competition or overexpansion.

Red Flags

5 items require attention · 3 high · 2 watch

🔴Debt has risen sharplyFinancial
Total debt is up 171% over 3 years, from ₹1 Cr to ₹2 Cr.
🔴High leverageFinancial
Debt/Equity of 4.78x — earnings must service borrowings before shareholders see anything.
🔴Receivables growing faster than salesFinancial
Receivables up 582% against revenue up -12% — sales are being booked faster than they are collected.
🟡Profit is decliningFinancial
Net profit is down 79% over 3 years.
🟡Inventory building faster than salesFinancial
Inventory up 26% against revenue up -12% — stock may not be moving.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 11.8% to 16.1%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Cheaper than its peers
It trades 49% 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?

Leverage amplifies any setback
Debt/Equity of 4.78x. Interest is payable whether or not the business has a good year.
Sales are being booked faster than collected
Receivables are up 582% against revenue up -12%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
The price already assumes success
The stock trades 162% above its own median multiple. At this level the business has to deliver just to stand still, and a stumble is repriced twice — lower earnings on a lower multiple.
Returns on shareholder capital are falling
ROE has dropped from 29.5% to 5.2%. 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.

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

1EBITDA margin holds above 14%✓ 16.1%
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✓ 0.6x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
4ROCE stays above 8%✗ 6.6%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.
5Valuation vs its own median of 6.8x✗ 17.8x 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

₹34 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

17.8x

Fair

Fairly valued against the generic band

P/B Ratio

1.03x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹5.76

Profitable

Profitable on a per-share basis

ROE

5.2%

Weak

Weak capital efficiency

ROCE

6.6%

Weak

Low return on total capital employed

Debt/Equity

4.78x

High

High leverage

Revenue Growth (YoY)

13.7%

Healthy

Healthy top-line growth

Profit Growth (YoY)

100.0%

Healthy

Profits growing at a healthy clip

Dividend Yield

3.41%

Healthy

Meaningful cash return while you hold the stock

Free Cash Flow

₹1 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

P/E (Forward)

18.9x

Flat

At or above the trailing multiple — no earnings uplift is being priced in

Operating Margin

7.3%

Average

Average margins

Net Margin

11.4%

Good

Strong bottom-line conversion

Current Ratio

1.55

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.09

Defensive

Steadier than the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

106.3 / 111.9

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

44.6

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹19 Cr	₹17 Cr	₹17 Cr	₹16 Cr	-4.3%
EBITDA	₹2 Cr	₹3 Cr	₹3 Cr	₹3 Cr	+6.2%
EBITDA Margin	11.8%	16.0%	16.7%	16.1%	—
PAT (Net Profit)	₹8 Cr	₹5 Cr	₹8 Cr	₹2 Cr	-40.7%
EPS	₹24.82	₹15.02	₹23.1	₹5.17	-40.7%
ROE	29.5%	13.9%	20.1%	5.2%	—
ROCE	34.3%	16.2%	23.9%	6.6%	—
Total Debt	₹1 Cr	₹1 Cr	₹2 Cr	₹2 Cr	+39.5%
Free Cash Flow	₹3 Cr	-₹2 Cr	₹1 Cr	₹1 Cr	-33.8%

🔴 Revenue has shrunk at 4.3% a year over 3 years.

🟢 EBITDA has grown at 6.2% a year over 3 years.

🟢 EBITDA Margin has risen from 11.8% to 16.1% over 3 years (+4.3 pts).

🔴 PAT (Net Profit) has shrunk at 40.7% a year over 3 years.

🔴 EPS has shrunk at 40.7% a year over 3 years.

🔴 ROE has fallen from 29.5% to 5.2% over 3 years (-24.3 pts).

🔴 ROCE has fallen from 34.3% to 6.6% over 3 years (-27.7 pts).

🔴 Total Debt has grown at 39.5% a year over 3 years.

🔴 Free Cash Flow has shrunk at 33.8% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹35 Cr

Total Liabilities

₹2 Cr

Cash & Equivalents

₹1 Cr

Operating Cash Flow

₹1 Cr

Capex

-₹0 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

77.3%

Corporate Actions

Dividend Rate

₹3.5

Ex-Dividend Date

18 Sept 2026

Peer Comparison

Company	P/E	ROE
APOLLO HOSPITALS ENTER. L	54.3x	22.0%
SUN PHARMACEUTICAL IND L	34.9x	14.5%
CIPLA LTD	31.8x	9.8%

Recent News

1 positive1 mixed4 general

NG Industries Ltd. Key Financial Ratios – Valuation, Profitability & More

Value Research, 29 Aug

NG Industries AGM resolutions passed; dividend of ₹3.50 approved

scanx.trade, 26 SeptCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

N.G.INDUSTRIES LTD. Share Price

Upstox, 05 May

StoneX cuts LCI Industries stock price target on volume concerns By Investing.com

Investing.com Nigeria, 13 OctAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

NG Industries Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 30 Aug

Beta Glass (NGSE:BETAGLAS) - Stock Analysis

Simply Wall Street, 15 Oct

Watch Items

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

MiddlingBusiness Quality · Financial Health · Profitability · Valuation

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

2 of 5 tripwires tripped — ROCE stays above 8%; Valuation vs its own median of 6.8x · see Key things to watch ↑