Nilkamal Limited

Consumer Cyclical — Furnishings, Fixtures & Appliances · NSE

₹1,769.00−₹18.70 (−1.05%)

DalalBaazaar Score

52 / 100

🟡 Moderate

Verdict

NEUTRAL

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, 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, 7:46 pm

Understanding the Business

Company site ↗

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

What does this company do?

Nilkamal Limited, together with its subsidiaries, manufactures and sells plastic products in India and internationally.

IndustryFurnishings, Fixtures & Appliances

SectorConsumer Cyclical

Employees3,524

Annual revenue₹3,744 Cr

How does it make money?

Turns over ₹3,744 Cr a year. Of every ₹100 of sales, about ₹3 reaches shareholders as profit, with ₹9 left at the operating level before interest, tax and depreciation. Each of its 3,524 employees supports ₹1.06 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹1.06 Cr

Who are its competitors?

The closest listed comparisons in its industry are HAVELLS INDIA LIMITED, VOLTAS LTD, TITAN COMPANY 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?Little sign of one

Returns on capital of 10.0% 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.

Peer median ROE17.1%

What is the outlook?

1 analysts covering the stock expect revenue to grow about 18.0% and earnings to grow about 21.5% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+18.0%

Est. earnings growth+21.5%

Analysts1

What has been driving growth?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved +21% while net margin moved -29% 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+21%

Margin effect-29%

DalalBaazaar Score

52/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ ROE of 7.3% is weak

Quality vs. Valuation

Company Quality

48/ 100

Average

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

Valuation

67/ 100

Fair

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.

Historical Valuation

Current P/E

21.2x

3Y Median

21.8x

40 monthly readings · mean 21.8x · range 15.0x–27.5x

Sector Median

68.5x

median of 3 sector peers

🟡Currently trading close to its 3y median of 21.8x — the market is paying about what it usually pays for this company.

🟢Against its sector it trades 69% below the peer median of 68.5x.

vs. its own history

Fair

21.8x median over 40 months · -3%

vs. sector peers

Cheap

68.5x median of 3 peers · -69%

vs. generic bands

Fair

15x–35x

EV/EBITDA

8.6x

PEG

—

What's Good / What's Bad

🟢 What's Going Well3

Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.
Very low debt
Debt/Equity of 0.26x leaves the balance sheet with plenty of headroom.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention1

Return on capital is falling
ROCE has declined from 12.5% to 10.0% — often a sign of competition or overexpansion.

Red Flags

No automated checks triggered

None of the automated financial checks below were triggered on the years of data available. That is not the same as a clean bill of health — see what could not be checked.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Cheaper than its peers
It trades 69% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Self-funding with balance-sheet headroom
Positive free cash flow of ₹153 Cr alongside low debt means growth, buybacks or dividends need no outside money — and a downturn can be absorbed rather than refinanced.
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?

Growth barely outpaces inflation
Revenue compounding at 6.5% a year is close to the rate prices rise, so the business is gaining little ground in real terms. That leaves the share price dependent on a re-rating rather than on earnings growth.
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 7%✓ 9.3%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Revenue growth stays above 5% a year✓ 6.5% CAGR
Latest reported year was -7.2%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
3Free cash flow remains positive✓ ₹153 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 1.2x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 8%✓ 10.0%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

7 / 12 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
✓ Analyst consensus isn't majority-sell
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

4 good · 5 neutral · 2 weak

Market Cap

₹2,649 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

21.2x

Fair

Fairly valued against the generic band

P/B Ratio

1.67x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹83.53

Profitable

Profitable on a per-share basis

ROE

7.3%

Weak

Weak capital efficiency

ROCE

10.0%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.26x

Low

Conservative leverage

Revenue Growth (YoY)

-7.2%

Shrinking

Sales are contracting

Profit Growth (YoY)

59.5%

Healthy

Profits growing at a healthy clip

Dividend Yield

1.13%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

₹153 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

P/E (Forward)

15.1x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

4.4%

Weak

Thin margins leave little room for error

Net Margin

3.4%

Average

Average bottom-line conversion

Current Ratio

2.33

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.34

Defensive

Steadier than the market

52W Range Position

65%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

1843.8 / 1925.6

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

30.9

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹3,099 Cr	₹3,172 Cr	₹3,292 Cr	₹3,744 Cr	+6.5%
EBITDA	₹322 Cr	₹306 Cr	₹300 Cr	₹349 Cr	+2.7%
EBITDA Margin	10.4%	9.6%	9.1%	9.3%	—
PAT (Net Profit)	₹134 Cr	₹122 Cr	₹106 Cr	₹116 Cr	-4.8%
EPS	₹89.76	₹81.92	₹71.32	₹77.45	-4.8%
ROE	10.2%	8.7%	7.2%	7.3%	—
ROCE	12.5%	11.1%	9.3%	10.0%	—
Total Debt	₹351 Cr	₹406 Cr	₹531 Cr	₹418 Cr	+6.0%
Free Cash Flow	-₹6 Cr	₹94 Cr	-₹23 Cr	₹153 Cr	—

🟢 Revenue has grown at 6.5% a year over 3 years.

🟢 EBITDA has grown at 2.7% a year over 3 years.

🔴 EBITDA Margin has fallen from 10.4% to 9.3% over 3 years (-1.1 pts).

🔴 PAT (Net Profit) has shrunk at 4.8% a year over 3 years.

🔴 EPS has shrunk at 4.8% a year over 3 years.

🔴 ROE has fallen from 10.2% to 7.3% over 3 years (-2.9 pts).

🔴 ROCE has fallen from 12.5% to 10.0% over 3 years (-2.4 pts).

🔴 Total Debt has grown at 6.0% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹6 Cr to ₹153 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹2,518 Cr

Total Liabilities

₹939 Cr

Cash & Equivalents

₹76 Cr

Operating Cash Flow

₹306 Cr

Capex

-₹153 Cr

Shareholding (proxy)

Institutional Holding

13.3%

Insider Holding

70.0%

Corporate Actions

Dividend Rate

₹20

Ex-Dividend Date

10 Jul 2026

Analyst Consensus

Recommendations

1 Buy · 1 Hold · 0 Sell

Target Price (Mean)

₹1,753

-0.9% vs CMP

Target Range

₹1,753 – ₹1,753

Peer Comparison

Company	P/E	ROE
HAVELLS INDIA LIMITED	43.5x	17.1%
VOLTAS LTD	75.8x	7.0%
TITAN COMPANY LIMITED	68.5x	36.7%

Recent News

2 positive3 mixed1 general

Nilkamal Share Price Rallies 11%, Gain Over 22% In 5 Sessions. Here's Why

NDTV Profit, 21 JulPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Here's What We Like About Nilkamal's (NSE:NILKAMAL) Upcoming Dividend

Simply Wall Street, 06 JulCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

Nilkamal Ltd. Share Price: Technicals Near 52-Week High

Univest, 19 Aug

NILKAMAL Forecast — Price Target — Prediction for 2027

TradingView, 25 JunAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Nilkamal FY26 revenue rises 14% to ₹3,686 crore

scanx.trade, 17 JulResults

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

Nilkamal Reports 22.3% Surge in Q4 Net Profit Reaching ₹417 Million YoY

Sahi, 14 MayResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Watch Items

Revenue growth is negative (-7.2%) 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

StrongFinancial Health

MiddlingBusiness Quality · Valuation · Risk

WeakGrowth · Profitability

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.

All 5 tripwires holding · see Key things to watch ↑