Nila Spaces Limited

Real Estate — Real Estate - Development · NSE

₹11.13+₹0.07 (+0.63%)

DalalBaazaar Score

71 / 100

🟢 Good

Verdict

REASONABLE

Risk

High

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

In simple words: Strong business and financial position, with both sales and profits growing well. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:46 pm

Understanding the Business

Company site ↗

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

What does this company do?

Nila Spaces Limited engages in real estate development activities. It is involved in the construction and development of residential buildings. The company was formerly known as Parmananday Superstructure Limited and changed its name to Nila Spaces Limited in November 2017.

IndustryReal Estate - Development

SectorReal Estate

Employees18

Annual revenue₹185 Cr

How does it make money?

Turns over ₹185 Cr a year. Of every ₹100 of sales, about ₹15 reaches shareholders as profit, with ₹38 left at the operating level before interest, tax and depreciation. Each of its 18 employees supports ₹10.28 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹10.28 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 26.8% 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?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +18204% while net margin moved -104% 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+18204%

Margin effect-104%

DalalBaazaar Score

71/ 100

Good

Weighted across six categories. Every point is explained below.

• Beta of 0.92 — moves roughly with the market
✗ 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

75/ 100

Good

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

Valuation

86/ 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

14.1x

2Y Median

35.2x

28 monthly readings · mean 34.7x · range 15.3x–49.7x

Sector Median

30.2x

median of 3 sector peers

🟢Current valuation is approximately 60% below its 2y median of 35.2x. 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 53% below the peer median of 30.2x.

vs. its own history

Cheap

35.2x median over 28 months · -60%

vs. sector peers

Cheap

30.2x median of 3 peers · -53%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

7.1x

PEG

0.35

What's Good / What's Bad

🟢 What's Going Well4

Margins are improving
EBITDA margin is up from -561.1% to 38.0% over 3 years.
Return on equity is rising
ROE has improved from -3.6% to 16.7%.
Return on capital is rising
ROCE has improved from -4.7% to 26.8%.
High return on capital employed
ROCE of 26.8% is the mark of a business that converts capital into profit efficiently.

🔴 What Needs Attention0

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

Red Flags

1 item require attention · 1 watch

🟡Free cash flow is negativeFinancial
Free cash flow was -₹37 Cr in the latest year.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 26.8% 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 -561.1% to 38.0%. 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 60% 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 53% 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 351% a year✓ 467.8% CAGR
Latest reported year was 14.3%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 36%✓ 38.0%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹37 Cr
Profit that never becomes cash eventually stops being profit.
4Interest cover stays above 3x✗ 2.6x
How much operating profit can fall before interest stops being comfortably covered.
5Debt / EBITDA stays below 2x✓ 0.9x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.

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

7 good · 3 neutral · 1 weak

Market Cap

₹438 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

14.1x

Cheap

Cheap against the generic band

P/B Ratio

2.50x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹0.79

Profitable

Profitable on a per-share basis

ROE

16.7%

Strong

Strong capital efficiency

ROCE

26.8%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.46x

Low

Conservative leverage

Revenue Growth (YoY)

14.3%

Healthy

Healthy top-line growth

Profit Growth (YoY)

40.0%

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

-₹37 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

35.5%

Good

Healthy core-business profitability

Net Margin

16.3%

Good

Strong bottom-line conversion

Current Ratio

2.69

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.92

Market-like

Moves roughly in line with the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

11.3 / 12.0

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

49.7

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹1 Cr	₹91 Cr	₹136 Cr	₹185 Cr	+467.8%
EBITDA	-₹6 Cr	₹22 Cr	₹41 Cr	₹70 Cr	—
EBITDA Margin	-561.1%	24.2%	30.3%	38.0%	—
PAT (Net Profit)	-₹4 Cr	₹13 Cr	₹15 Cr	₹29 Cr	—
EPS	₹-0.1	₹0.34	₹0.37	₹0.72	—
ROE	-3.6%	10.5%	10.4%	16.7%	—
ROCE	-4.7%	15.8%	22.6%	26.8%	—
Total Debt	—	₹1 Cr	₹10 Cr	₹66 Cr	—
Free Cash Flow	₹13 Cr	₹24 Cr	-₹42 Cr	-₹37 Cr	—

🟢 Revenue has grown at 467.8% a year over 3 years.

🟢 EBITDA has turned positive, from -₹6 Cr to ₹70 Cr.

🟢 EBITDA Margin has risen from -561.1% to 38.0% over 3 years (+599.1 pts).

🟢 PAT (Net Profit) has turned positive, from -₹4 Cr to ₹29 Cr.

🟢 EPS has turned positive, from ₹-0.1 to ₹0.72.

🟢 ROE has risen from -3.6% to 16.7% over 3 years (+20.3 pts).

🟢 ROCE has risen from -4.7% to 26.8% over 3 years (+31.5 pts).

🔴 Free Cash Flow has turned negative, from ₹13 Cr to -₹37 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹364 Cr

Total Liabilities

₹194 Cr

Cash & Equivalents

₹7 Cr

Operating Cash Flow

-₹29 Cr

Capex

-₹8 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

63.2%

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

1 mixed5 general

Here's Why We Think Nila Spaces (NSE:NILASPACES) Is Well Worth Watching

Simply Wall Street, 26 Sept

Why Is Nila Spaces Share Price Falling Key Reasons 2026

Univest, 18 JunPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

Nila Spaces promoter Kiran Vadodaria cuts stake by 0.08% in latest sale

scanx.trade, 22 Sept

Nila Spaces Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 02 Sept

Nila Spaces Share: Bull Case vs Bear Case for 2026

Univest, 16 Sept

Nila Spaces and IKEA partner for B2B push, eye growth in India’s emerging ready-to-live homes market

Livemint, 24 Jun

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

StrongBusiness Quality · Financial Health · Growth · Profitability · Valuation

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.

2 of 5 tripwires tripped — Free cash flow remains positive; Interest cover stays above 3x · see Key things to watch ↑