Nidan Laboratories and Healthcare Limited

Sector n/a · NSE

₹33.00+₹0.15 (+0.46%)

DalalBaazaar Score

44 / 100

🟡 Moderate

Verdict

CAUTION

Risk

Low

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 modest growth. Nothing on this snapshot stands out as an immediate concern — the usual checks on business quality and management still apply.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:02 pm

Understanding the Business

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

How does it make money?

Turns over ₹25 Cr a year. Of every ₹100 of sales, about ₹8 reaches shareholders as profit, with ₹29 left at the operating level before interest, tax and depreciation.

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.

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved -17% while net margin moved -10% 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-17%

Margin effect-10%

DalalBaazaar Score

44/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 6.1% a year
✗ Profit has declined at 9.5% a year

Quality vs. Valuation

Company Quality

45/ 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.

vs. its own history

Not enough price and earnings history

vs. sector peers

Not enough peers with a usable P/E

vs. generic bands

No P/E available

EV/EBITDA

7.6x

PEG

—

What's Good / What's Bad

🟢 What's Going Well3

Debt is being paid down
Total debt is down 42% over 3 years.
Cash generation is improving
Free cash flow is up 77% over 3 years.
Very low debt
Debt/Equity of 0.16x leaves the balance sheet with plenty of headroom.

🔴 What Needs Attention1

Return on capital is falling
ROCE has declined from 9.2% to 6.6% — often a sign of competition or overexpansion.

Red Flags

4 items require attention · 2 high · 2 watch

🔴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.
🔴Inventory building faster than salesFinancial
Inventory up 154% against revenue up -17% — stock may not be moving.
🟡Profit is decliningFinancial
Net profit is down 26% over 3 years.
🟡Margins are compressingFinancial
EBITDA margin is down 4.5 points over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Deleveraging frees up earnings
Debt is down 42% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
Self-funding with balance-sheet headroom
Positive free cash flow of ₹1 Cr alongside low debt means growth, buybacks or dividends need no outside money — and a downturn can be absorbed rather than refinanced.

🔴 Bear CaseWhat could go wrong?

Margins are being competed away
EBITDA margin has fallen from 33.8% to 29.4%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
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

1EBITDA margin holds above 27%✓ 29.4%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Interest cover stays above 3x✗ 2.3x
How much operating profit can fall before interest stops being comfortably covered.
3Free cash flow remains positive✓ ₹1 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 1.5x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 8%✗ 6.6%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

5 / 9 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
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

4 good · 5 neutral · 2 weak

Market Cap

₹46 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

Not available

No data

Source didn't return this field

P/B Ratio

Not available

No data

Source didn't return this field

EPS (TTM)

₹1.42

Profitable

Profitable on a per-share basis

ROE

2.9%

Weak

Weak capital efficiency

ROCE

6.6%

Weak

Low return on total capital employed

Debt/Equity

0.16x

Low

Conservative leverage

Revenue Growth (YoY)

1.4%

Modest

Modest growth

Profit Growth (YoY)

161.2%

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

₹1 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Gross Margin

96.8%

Proxy

Operating margin unavailable — showing gross margin instead

Net Margin

8.1%

Average

Average bottom-line conversion

Current Ratio

1.10

Adequate

Adequate, but no real cushion

Technical Snapshot

SMA 20 / SMA 50

13.2 / 13.4

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

46.7

Neutral momentum

Financial Trend (4-Year)

Metric	FY22	FY23	FY24	FY25	3Y CAGR
Revenue	₹30 Cr	₹24 Cr	₹24 Cr	₹25 Cr	-6.1%
EBITDA	₹10 Cr	₹10 Cr	₹9 Cr	₹7 Cr	-10.5%
EBITDA Margin	33.8%	40.8%	39.1%	29.4%	—
PAT (Net Profit)	₹3 Cr	₹4 Cr	-₹3 Cr	₹2 Cr	-9.5%
EPS	₹2.32	₹2.55	₹-2.33	₹1.42	-15.1%
ROE	4.0%	5.1%	-4.9%	2.9%	—
ROCE	9.2%	9.2%	-0.4%	6.6%	—
Total Debt	₹19 Cr	₹11 Cr	₹12 Cr	₹11 Cr	-16.8%
Free Cash Flow	₹1 Cr	₹10 Cr	₹5 Cr	₹1 Cr	+21.1%

🔴 Revenue has shrunk at 6.1% a year over 3 years.

🔴 EBITDA has shrunk at 10.5% a year over 3 years.

🔴 EBITDA Margin has fallen from 33.8% to 29.4% over 3 years (-4.5 pts).

🔴 PAT (Net Profit) has shrunk at 9.5% a year over 3 years.

🔴 EPS has shrunk at 15.1% a year over 3 years.

🔴 ROE has fallen from 4.0% to 2.9% over 3 years (-1.1 pts).

🔴 ROCE has fallen from 9.2% to 6.6% over 3 years (-2.6 pts).

🟢 Total Debt has shrunk at 16.8% a year over 3 years.

🟢 Free Cash Flow has grown at 21.1% a year over 3 years.

Balance Sheet & Cash Flow — FY2025

Total Assets

₹83 Cr

Total Liabilities

₹15 Cr

Cash & Equivalents

₹2 Cr

Operating Cash Flow

₹2 Cr

Capex

-₹1 Cr

Recent News

6 general

Nidan Laboratories And Healthcare Ltd. Share Price Live Today

CNBC TV18, 16 Jul

NIDAN Stock Price and Chart — NSE:NIDAN

TradingView, 02 Dec

Nidan Laboratories and Healthcare (NSEI:NIDAN) - Stock Analysis

Simply Wall Street, 13 Nov

Nidan Laboratories and Healthcare Ltd. IPO opens on 28th October, 2021

ThePrint, 26 Oct

MDRC Stock Price and Chart — BSE:MDRC

TradingView, 07 Jan

Family Care Hospitals (BSE:516110) - Stock Analysis

Simply Wall Street, 08 Sept

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.
Sector/industry classification unavailable — verify manually for peer comparison.
2 metrics couldn't be retrieved for this stock — this is more common for smaller or thinly-covered listings.

DalalBaazaar Thesis

StrongFinancial Health

MiddlingBusiness Quality · Valuation

WeakGrowth · Profitability · Risk

Points for each in the Score ↑

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

2 of 5 tripwires tripped — Interest cover stays above 3x; ROCE stays above 8% · see Key things to watch ↑