Nila Infrastructures Limited

Real Estate — Real Estate - Development · NSE

₹6.82+₹0.04 (+0.59%)

DalalBaazaar Score

68 / 100

🟢 Good

Verdict

REASONABLE

Risk

Moderate

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

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, 7:01 pm

Understanding the Business

Company site ↗

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

What does this company do?

Nila Infrastructures Limited constructs and develops infrastructure and real estate projects in India.

IndustryReal Estate - Development

SectorReal Estate

Employees62

Annual revenue₹322 Cr

How does it make money?

Turns over ₹322 Cr a year. Of every ₹100 of sales, about ₹7 reaches shareholders as profit, with ₹14 left at the operating level before interest, tax and depreciation. Each of its 62 employees supports ₹5.19 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹5.19 Cr

Who are its competitors?

The closest listed comparisons in its industry are DLF LIMITED, GODREJ PROPERTIES LTD, OBEROI REALTY 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 19.4% 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 ROE10.3%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +183% while net margin moved -1933% 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+183%

Margin effect-1933%

DalalBaazaar Score

68/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of 0.76 — 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
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

68/ 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

10.8x

2Y Median

19.4x

28 monthly readings · mean 25.9x · range 11.4x–49.7x

Sector Median

30.2x

median of 3 sector peers

🟢Current valuation is approximately 44% below its 2y median of 19.4x. 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 64% below the peer median of 30.2x.

vs. its own history

Cheap

19.4x median over 28 months · -44%

vs. sector peers

Cheap

30.2x median of 3 peers · -64%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

6.6x

PEG

0.46

What's Good / What's Bad

🟢 What's Going Well4

Debt is being paid down
Total debt is down 64% over 3 years.
Return on equity is rising
ROE has improved from -0.3% to 12.4%.
Return on capital is rising
ROCE has improved from 7.6% to 19.4%.
Very low debt
Debt/Equity of 0.13x leaves the balance sheet with plenty of headroom.

🔴 What Needs Attention0

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

Red Flags

2 items require attention · 1 high · 1 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.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹27 Cr in the latest year.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 19.4% 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.
Deleveraging frees up earnings
Debt is down 64% 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 44% 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 64% 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 31% a year✓ 41.4% CAGR
Latest reported year was -19.9%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 12%✓ 13.8%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹27 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.5x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 16%✓ 19.4%
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 · 3 neutral · 2 weak

Market Cap

₹269 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

10.8x

Cheap

Cheap against the generic band

P/B Ratio

1.43x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹0.63

Profitable

Profitable on a per-share basis

ROE

12.4%

Moderate

Moderate capital efficiency

ROCE

19.4%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.13x

Low

Conservative leverage

Revenue Growth (YoY)

-19.9%

Shrinking

Sales are contracting

Profit Growth (YoY)

23.5%

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

-₹27 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

9.5%

Average

Average margins

Net Margin

8.2%

Average

Average bottom-line conversion

Current Ratio

1.10

Adequate

Adequate, but no real cushion

Beta (vs Nifty)

0.76

Defensive

Steadier than the market

52W Range Position

20%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

6.7 / 6.9

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

46.9

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹114 Cr	₹183 Cr	₹246 Cr	₹322 Cr	+41.4%
EBITDA	₹15 Cr	₹24 Cr	₹37 Cr	₹44 Cr	+42.5%
EBITDA Margin	13.5%	12.8%	14.9%	13.8%	—
PAT (Net Profit)	-₹0 Cr	₹11 Cr	₹20 Cr	₹23 Cr	—
EPS	₹-0.01	₹0.29	₹0.52	₹0.59	—
ROE	-0.3%	7.8%	12.5%	12.4%	—
ROCE	7.6%	12.6%	17.6%	19.4%	—
Total Debt	₹66 Cr	₹35 Cr	₹26 Cr	₹24 Cr	-28.9%
Free Cash Flow	₹58 Cr	₹65 Cr	₹57 Cr	-₹27 Cr	—

🟢 Revenue has grown at 41.4% a year over 3 years.

🟢 EBITDA has grown at 42.5% a year over 3 years.

🟡 EBITDA Margin has held roughly flat at 13.8% over 3 years.

🟢 PAT (Net Profit) has turned positive, from -₹0 Cr to ₹23 Cr.

🟢 EPS has turned positive, from ₹-0.01 to ₹0.59.

🟢 ROE has risen from -0.3% to 12.4% over 3 years (+12.8 pts).

🟢 ROCE has risen from 7.6% to 19.4% over 3 years (+11.8 pts).

🟢 Total Debt has shrunk at 28.9% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹58 Cr to -₹27 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹894 Cr

Total Liabilities

₹706 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

-₹26 Cr

Capex

-₹1 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

65.9%

Corporate Actions

Ex-Dividend Date

19 Sept 2018

Peer Comparison

Company	P/E	ROE
DLF LIMITED	36.6x	10.3%
GODREJ PROPERTIES LTD	30.2x	8.4%
OBEROI REALTY LIMITED	23.5x	14.7%

Recent News

2 positive4 general

Is Nila Infrastructures the Best Stock in Its Sector? A Look at the Numbers

Univest, 05 Oct

Nila Infrastructures' (NSE:NILAINFRA) Profits May Not Reveal Underlying Issues

Simply Wall Street, 10 May

Nila Infrastructures consolidated net profit rises 25.78% in the June 2026 quarter

Business Standard, 25 JulResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

Nila Infrastructures Reports FY26 Audited Results; Profit Rises to ₹2,699.11 Lakh

scanx.trade, 04 MayResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

Nila Infrastructures Share Price Forecast: 3 Year Outlook to 2030

Univest, 22 Jul

Nila Infrastructures Ltd

Equitypandit, 21 Sept

Watch Items

Revenue growth is negative (-19.9%) 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 · Valuation

MiddlingProfitability

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. 1 high-severity red flag sits above this conclusion and should be read first.

1 of 5 tripwires tripped — Free cash flow remains positive · see Key things to watch ↑