Nidhi Granites Limited

Basic Materials — Building Materials · BSE

₹236.00+₹8.85 (+3.90%)

DalalBaazaar Score

76 / 100

🟢 Good

Verdict

REASONABLE

Risk

Low

Driven by micro-cap size, which brings thin liquidity.

In simple words: Strong business and financial position, but sales are shrinking. Whether sales start growing again is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:03 pm

Understanding the Business

Company site ↗

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

What does this company do?

Nidhi Granites Limited manufactures and trades in granite and marble slabs, tiles, and sandstone and limestone products in India. It also offers garments, construction materials, and financial technology and related services.

IndustryBuilding Materials

SectorBasic Materials

Annual revenue₹65 Cr

How does it make money?

Turns over ₹65 Cr a year. Of every ₹100 of sales, about ₹12 reaches shareholders as profit, with ₹22 left at the operating level before interest, tax and depreciation.

Who are its competitors?

The closest listed comparisons in its industry are ULTRATECH CEMENT LIMITED, GRASIM INDUSTRIES LTD, AMBUJA CEMENTS LTD, SHREE CEMENT LIMITED. 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?Some evidence

ROCE of 46.3% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

Peer median ROE7.4%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +158% while net margin moved +582% 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+158%

Margin effect+582%

DalalBaazaar Score

76/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of 0.75 — historically steadier than the index
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ Profits have swung sharply from year to year — earnings are hard to forecast

Quality vs. Valuation

Company Quality

83/ 100

Excellent

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

Valuation

75/ 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

22.7x

3Y Median

131.4x

40 monthly readings · mean 116.5x · range 24.3x–234.7x

Sector Median

36.2x

median of 4 sector peers

🟢Current valuation is approximately 83% below its 3y median of 131.4x. 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 37% below the peer median of 36.2x.

vs. its own history

Cheap

131.4x median over 40 months · -83%

vs. sector peers

Cheap

36.2x median of 4 peers · -37%

vs. generic bands

Fair

15x–35x

EV/EBITDA

13.3x

PEG

0.14

What's Good / What's Bad

🟢 What's Going Well8

Margins are improving
EBITDA margin is up from 4.3% to 21.7% over 3 years.
Debt is being paid down
Total debt is down 16% over 3 years.
Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.
Return on equity is rising
ROE has improved from 4.7% to 34.1%.
Return on capital is rising
ROCE has improved from 8.1% to 46.3%.
High return on capital employed
ROCE of 46.3% is the mark of a business that converts capital into profit efficiently.
Very low debt
Debt/Equity of 0.12x leaves the balance sheet with plenty of headroom.
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

2 items require attention · 2 watch

🟡Inventory building faster than salesFinancial
Inventory up 204% against revenue up 158% — stock may not be moving.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 51% over 3 years — each existing share owns a smaller slice of the company.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 46.3% 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 4.3% to 21.7%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Deleveraging frees up earnings
Debt is down 16% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
Priced below its own history
The stock trades 83% 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 37% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.

🔴 Bear CaseWhat could go wrong?

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.

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

1Revenue growth stays above 28% a year✓ 37.1% CAGR
Latest reported year was -19.4%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 20%✓ 21.7%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✓ ₹1 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.2x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 43%✓ 46.3%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

9 / 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 · 3 neutral · 2 weak

Market Cap

₹189 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

22.7x

Fair

Fairly valued against the generic band

P/B Ratio

8.37x

Rich

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

EPS (TTM)

₹10.4

Profitable

Profitable on a per-share basis

ROE

34.1%

Strong

Strong capital efficiency

ROCE

46.3%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.12x

Low

Conservative leverage

Revenue Growth (YoY)

-19.4%

Shrinking

Sales are contracting

Profit Growth (YoY)

29.3%

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

Operating Margin

24.4%

Good

Healthy core-business profitability

Net Margin

13.5%

Good

Strong bottom-line conversion

Current Ratio

2.40

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.75

Defensive

Steadier than the market

52W Range Position

18%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

240.0 / 263.8

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

39.0

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹25 Cr	₹39 Cr	₹45 Cr	₹65 Cr	+37.1%
EBITDA	₹1 Cr	₹2 Cr	₹2 Cr	₹14 Cr	+136.0%
EBITDA Margin	4.3%	4.8%	4.4%	21.7%	—
PAT (Net Profit)	₹0 Cr	₹1 Cr	₹2 Cr	₹8 Cr	+160.0%
EPS	₹2.08	₹0.98	₹2.4	₹9.6	+66.6%
ROE	4.7%	5.3%	12.9%	34.1%	—
ROCE	8.1%	9.5%	18.9%	46.3%	—
Total Debt	₹3 Cr	₹4 Cr	₹3 Cr	₹3 Cr	-5.6%
Free Cash Flow	-₹3 Cr	-₹3 Cr	-₹1 Cr	₹1 Cr	—

🟢 Revenue has grown at 37.1% a year over 3 years.

🟢 EBITDA has grown at 136.0% a year over 3 years.

🟢 EBITDA Margin has risen from 4.3% to 21.7% over 3 years (+17.4 pts).

🟢 PAT (Net Profit) has grown at 160.0% a year over 3 years.

🟢 EPS has grown at 66.6% a year over 3 years.

🟢 ROE has risen from 4.7% to 34.1% over 3 years (+29.4 pts).

🟢 ROCE has risen from 8.1% to 46.3% over 3 years (+38.2 pts).

🟢 Total Debt has shrunk at 5.6% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹3 Cr to ₹1 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹33 Cr

Total Liabilities

₹10 Cr

Cash & Equivalents

₹4 Cr

Operating Cash Flow

₹6 Cr

Capex

-₹5 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

90.3%

Corporate Actions

Ex-Dividend Date

13 Sept 1996

Peer Comparison

Company	P/E	ROE
ULTRATECH CEMENT LIMITED	37.6x	11.1%
GRASIM INDUSTRIES LTD	34.8x	5.5%
AMBUJA CEMENTS LTD	20.4x	7.4%
SHREE CEMENT LIMITED	49.7x	7.0%

Recent News

6 general

Nidhi Granites Lower Circuit Today: Price, Data and Peers

Univest, 13 Oct

Nidhi Granites acquires 50.50% stake in Jowela Exim for ₹1.6 crore

scanx.trade, 14 Oct

Nidhi Granites Ltd. Peer Comparison – Compare with Others

Value Research, 15 Sept

Nidhi Granites Ltd. Upper Circuit Streak: Day 2 Price and Data

Univest, 01 Oct

Nidhi Granites promoters purchase equity shares via open market

scanx.trade, 25 Jun

Nidhi Granites Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 30 Aug

Watch Items

Revenue growth is negative (-19.4%) on the latest reported period — check if this is one-off or a trend.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongBusiness Quality · Financial Health · Growth · Profitability

MiddlingValuation

WeakRisk

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.

All 5 tripwires holding · see Key things to watch ↑