Nile Limited

Basic Materials — Other Industrial Metals & Mining · NSE

₹1,438.40+₹46.90 (+3.37%)

DalalBaazaar Score

70 / 100

🟢 Good

Verdict

REASONABLE

Risk

High

Driven by high debt relative to equity, micro-cap size, which brings thin liquidity.

In simple words: Strong business and financial position, 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, 6:07 pm

Mixed / neutral. No major red flags jump out, but nothing here screams "obviously cheap" either. This is a name that needs a peer comparison and a view on near-term earnings triggers before sizing a position.

Understanding the Business

Company site ↗

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

What does this company do?

Nile Limited engages in the manufacture and sale of pure lead for battery consumption in India and internationally. The company offers lead antimony, lead selenium, lead calcium, lead tin, and pure lead.

IndustryOther Industrial Metals & Mining

SectorBasic Materials

Employees131

Annual revenue₹1,039 Cr

How does it make money?

Turns over ₹1,039 Cr a year. Of every ₹100 of sales, about ₹5 reaches shareholders as profit, with ₹8 left at the operating level before interest, tax and depreciation. Each of its 131 employees supports ₹7.93 Cr of revenue a year, the signature of a capital- or asset-led business.

EBITDA margin8.0%

Net margin5.3%

Revenue / employee₹7.93 Cr

Who are its competitors?

The closest listed comparisons in its industry are HINDALCO INDUSTRIES LTD, VEDANTA LIMITED, TATA STEEL LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

HINDALCO INDUSTRIES LTDP/E 12.3x · ROE 12.0%

VEDANTA LIMITEDP/E 10.4x · ROE 18.7%

TATA STEEL LIMITEDP/E 19.8x · ROE 10.8%

What is its competitive advantage?The numbers suggest a real one

ROCE has stayed above 15% in every year available and stands at 23.5%. Returns that high normally get competed away; when they persist, something is protecting them, and its ROE of 17.5% against a peer median of 12.0% is consistent with that. What that something is — brand, scale, switching costs, regulation — the accounts cannot tell you.

ROCE23.5%

ROE17.5%

Peer median ROE12.0%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +29% while net margin moved +90% 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+29%

Margin effect+90%

DalalBaazaar Score

70/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of 0.43 — historically steadier than the index
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ High leverage magnifies any downturn in earnings

Quality vs. Valuation

Company Quality

70/ 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

9.1x

Sector Median

12.3x

median of 3 sector peers

🟢Against its sector it trades 26% below the peer median of 12.3x.

vs. its own history

Not enough price and earnings history

vs. sector peers

Cheap

12.3x median of 3 peers · -26%

vs. generic bands

Cheap

Below 15x

P/E (Trailing)

9.1x

P/B

1.37x

EV/EBITDA

5.0x

PEG

0.26

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well6

Margins are improving
EBITDA margin is up from 4.4% to 8.0% over 3 years.
Cash generation is improving
Free cash flow is up 44% over 3 years.
Return on equity is rising
ROE has improved from 11.3% to 17.5%.
Return on capital is rising
ROCE has improved from 15.6% to 23.5%.
High return on capital employed
ROCE of 23.5% is the mark of a business that converts capital into profit efficiently.
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

1 item require attention · 1 high

🔴High leverageFinancial
Debt/Equity of 3.79x — earnings must service borrowings before shareholders see anything.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 23.5% 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 4.4% to 8.0%. 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 26% 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 3.79x. Interest is payable whether or not the business has a good year.
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 6%✓ 8.0%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Revenue growth stays above 7% a year✓ 8.9% CAGR
Latest reported year was 14.4%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
3Free cash flow remains positive✓ ₹66 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 20%✓ 23.5%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

8 / 10 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

Price history

Quick Metrics

8 good · 2 neutral · 1 weak

Market Cap

₹432 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

9.1x

Cheap

Cheap against the generic band

P/B Ratio

1.37x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹158.82

Profitable

Profitable on a per-share basis

ROE

17.5%

Strong

Strong capital efficiency

ROCE

23.5%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

3.79x

High

High leverage

Revenue Growth (YoY)

14.4%

Healthy

Healthy top-line growth

Profit Growth (YoY)

52.0%

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

₹66 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

CMP

₹1,438.4

Operating Margin

3.4%

Weak

Thin margins leave little room for error

Net Margin

4.5%

Average

Average bottom-line conversion

Current Ratio

9.63

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.43

Defensive

Steadier than the market

52W Range Position

66%

Mid-range

Technical Snapshot

RSI (14)

56.9

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹806 Cr	₹836 Cr	₹918 Cr	₹1,039 Cr	+8.9%
EBITDA	₹36 Cr	₹46 Cr	₹56 Cr	₹83 Cr	+32.4%
EBITDA Margin	4.4%	5.5%	6.1%	8.0%	—
PAT (Net Profit)	₹23 Cr	₹31 Cr	₹36 Cr	₹55 Cr	+34.8%
EPS	₹75.41	₹103.71	₹121.07	₹183.67	+34.5%
ROE	11.3%	13.6%	13.7%	17.5%	—
ROCE	15.6%	17.6%	18.7%	23.5%	—
Total Debt	₹16 Cr	₹12 Cr	₹22 Cr	₹18 Cr	+3.0%
Free Cash Flow	₹46 Cr	₹6 Cr	-₹15 Cr	₹66 Cr	+13.0%

🟢 Revenue has grown at 8.9% a year over 3 years.

🟢 EBITDA has grown at 32.4% a year over 3 years.

🟢 EBITDA Margin has risen from 4.4% to 8.0% over 3 years (+3.5 pts).

🟢 PAT (Net Profit) has grown at 34.8% a year over 3 years.

🟢 EPS has grown at 34.5% a year over 3 years.

🟢 ROE has risen from 11.3% to 17.5% over 3 years (+6.2 pts).

🟢 ROCE has risen from 15.6% to 23.5% over 3 years (+7.9 pts).

🔴 Total Debt has grown at 3.0% a year over 3 years.

🟢 Free Cash Flow has grown at 13.0% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹354 Cr

Total Liabilities

₹38 Cr

Total Debt

₹18 Cr

Cash & Equivalents

₹34 Cr

Operating Cash Flow

₹83 Cr

Capex

-₹17 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

57.3%

Peer Comparison

Company	P/E	ROE
HINDALCO INDUSTRIES LTD	12.3x	12.0%
VEDANTA LIMITED	10.4x	18.7%
TATA STEEL LIMITED	19.8x	10.8%

Recent News

1 mixed1 negative4 general

Nile Ltd. (NILE) Share Price Falls Over 10% Today

Univest, 04 AugPrice 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.

Nile (NILE) Share/Stock Price Live, NSE

TechGraph, 08 Oct

Nile Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 01 Sept

NILE Stock Price and Chart — NSE:NILE

TradingView, 20 Apr

Nile Ltd. Share Price Near 52-Week Low, Price View

Univest, 08 Oct

NILE consolidated net profit declines 45.24% in the June 2026 quarter

Business Standard, 04 AugResults

🔴Potentially negativeReported deterioration, which feeds the growth and margin inputs on this page directly.

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

🟡Business QualityAdequate12.4/20

🟢Financial HealthStrong13.9/20

🟢GrowthStrong16.1/20

🟢ProfitabilityStrong9.8/15

🟢ValuationAttractive13/15

🔴RiskHigh4.3/10

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.

This thesis breaks if

✓EBITDA margin holds above 6%8.0%
✓Revenue growth stays above 7% a year8.9% CAGR
✓Free cash flow remains positive₹66 Cr
✓Debt / EBITDA stays below 2x0.2x
✓ROCE stays above 20%23.5%