Niraj Cement Structurals Limited

Industrials — Engineering & Construction · NSE

₹27.09−₹0.64 (−2.31%)

DalalBaazaar Score

58 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

Moderate

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

In simple words: The business is earning a fairly low return on the money invested in it, 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, 7:03 pm

Understanding the Business

Company site ↗

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

What does this company do?

Niraj Cement Structurals Limited engages in the civil construction and infrastructure business in India. The company engages in construction of highways, expressways, turnkey projects, roads, bridges, and tunnels, etc.

IndustryEngineering & Construction

SectorIndustrials

Employees22

Annual revenue₹527 Cr

How does it make money?

Turns over ₹527 Cr a year. Of every ₹100 of sales, about ₹4 reaches shareholders as profit, with ₹6 left at the operating level before interest, tax and depreciation. Each of its 22 employees supports ₹23.94 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹23.94 Cr

Who are its competitors?

The closest listed comparisons in its industry are LARSEN & TOUBRO LTD., ADANI PORT & SEZ LTD, SIEMENS LTD. 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 11.6% 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 ROE14.1%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved -11% while net margin moved +450% 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-11%

Margin effect+450%

DalalBaazaar Score

58/ 100

Moderate

Weighted across six categories. Every point is explained below.

✓ Beta of 0.11 — 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

54/ 100

Average

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 reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

6.8x

3Y Median

22.6x

40 monthly readings · mean 23.1x · range 5.9x–55.6x

Sector Median

30.1x

median of 3 sector peers

🟢Current valuation is approximately 70% below its 3y median of 22.6x. 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 77% below the peer median of 30.1x.

vs. its own history

Cheap

22.6x median over 40 months · -70%

vs. sector peers

Cheap

30.1x median of 3 peers · -77%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

6.9x

PEG

0.10

What's Good / What's Bad

🟢 What's Going Well5

Margins are improving
EBITDA margin is up from 2.2% to 6.4% over 3 years.
Return on equity is rising
ROE has improved from 2.5% to 8.0%.
Return on capital is rising
ROCE has improved from 4.1% to 11.6%.
Very low debt
Debt/Equity of 0.29x 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

5 items require attention · 3 high · 2 watch

🔴Debt has risen sharplyFinancial
Total debt is up 193% over 3 years, from ₹26 Cr to ₹76 Cr.
🔴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.
🔴Inventory building faster than salesFinancial
Inventory up 112% against revenue up -11% — stock may not be moving.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹103 Cr in the latest year.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 49% over 3 years — each existing share owns a smaller slice of the company.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 2.2% to 6.4%. 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 70% 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 77% 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?

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.
Several serious flags at once
3 high-severity checks triggered. Individually each has an explanation; together they raise the chance that something structural is wrong rather than a one-off.

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

1EBITDA margin holds above 4%✓ 6.4%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA stays below 2x✗ 2.2x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
3Free cash flow remains positive✗ -₹103 Cr
Profit that never becomes cash eventually stops being profit.
4ROCE stays above 9%✓ 11.6%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.
5Valuation vs its own median of 22.6x✓ 6.8x today
A re-rating above its own history needs a reason; without one it is just a higher price.

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

₹162 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

6.8x

Cheap

Cheap against the generic band

P/B Ratio

0.61x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹3.98

Profitable

Profitable on a per-share basis

ROE

8.0%

Weak

Weak capital efficiency

ROCE

11.6%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.29x

Low

Conservative leverage

Revenue Growth (YoY)

10.6%

Healthy

Healthy top-line growth

Profit Growth (YoY)

252.9%

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

-₹103 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

7.3%

Average

Average margins

Net Margin

4.3%

Average

Average bottom-line conversion

Current Ratio

2.02

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.11

Defensive

Steadier than the market

52W Range Position

27%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

27.9 / 28.3

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

41.9

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹593 Cr	₹463 Cr	₹502 Cr	₹527 Cr	-3.9%
EBITDA	₹13 Cr	₹23 Cr	₹23 Cr	₹34 Cr	+36.8%
EBITDA Margin	2.2%	5.0%	4.6%	6.4%	—
PAT (Net Profit)	₹4 Cr	₹10 Cr	₹15 Cr	₹21 Cr	+69.7%
EPS	₹1.08	₹2.42	₹3.51	₹3.55	+48.7%
ROE	2.5%	6.4%	6.2%	8.0%	—
ROCE	4.1%	8.6%	8.2%	11.6%	—
Total Debt	₹26 Cr	₹1 Cr	₹2 Cr	₹76 Cr	+43.1%
Free Cash Flow	-₹30 Cr	₹23 Cr	-₹77 Cr	-₹103 Cr	—

🔴 Revenue has shrunk at 3.9% a year over 3 years.

🟢 EBITDA has grown at 36.8% a year over 3 years.

🟢 EBITDA Margin has risen from 2.2% to 6.4% over 3 years (+4.2 pts).

🟢 PAT (Net Profit) has grown at 69.7% a year over 3 years.

🟢 EPS has grown at 48.7% a year over 3 years.

🟢 ROE has risen from 2.5% to 8.0% over 3 years (+5.5 pts).

🟢 ROCE has risen from 4.1% to 11.6% over 3 years (+7.5 pts).

🔴 Total Debt has grown at 43.1% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹467 Cr

Total Liabilities

₹201 Cr

Cash & Equivalents

₹4 Cr

Operating Cash Flow

-₹98 Cr

Capex

-₹5 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

73.0%

Peer Comparison

Company	P/E	ROE
LARSEN & TOUBRO LTD.	30.1x	15.2%
ADANI PORT & SEZ LTD	29.9x	14.1%
SIEMENS LTD	88.8x	10.5%

Recent News

3 mixed3 general

Niraj Cement Structurals Share Price Target 2027: Base and Bull Targets Built on FY26 Earnings

Univest, 09 OctAnalyst view

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

Niraj Cement Structurals closes trading window from Oct 1 for Q2FY27 results

scanx.trade, 29 SeptResults

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

Niraj Cement Structurals Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 28 Aug

Do Niraj Cement Structurals' (NSE:NIRAJ) Earnings Warrant Your Attention?

Simply Wall Street, 21 AprResults

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

Is Niraj Cement Structurals the Best Stock in Its Sector? A Look at the Numbers

Univest, 05 Oct

Niraj Cement Structurals open offer opens July 31 at ₹29 per share

scanx.trade, 31 Jul

Watch Items

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

DalalBaazaar Thesis

StrongFinancial Health · Valuation

MiddlingBusiness Quality · Growth · Profitability

WeakRisk

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. 3 high-severity red flags sit above this conclusion and should be read first.

2 of 5 tripwires tripped — Debt / EBITDA stays below 2x; Free cash flow remains positive · see Key things to watch ↑