Niraj Ispat Industries Limited

Consumer Cyclical — Apparel Manufacturing · NSE

₹271.00+₹12.50 (+4.84%)

DalalBaazaar Score

54 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

Moderate

Driven by micro-cap size, which brings thin liquidity.

In simple words: Profitability data is thin for this company. Thin profit margins are the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:49 pm

Understanding the Business

Company site ↗

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

What does this company do?

Niraj Ispat Industries Limited manufactures and sells polyester buttons in two or four thread holes in India. Its products are used in dresses, sweaters, pouches, and shirts. Niraj Ispat Industries Limited was incorporated in 1985 and is based in Ghaziabad, India.

IndustryApparel Manufacturing

SectorConsumer Cyclical

Annual revenue₹3 Cr

How does it make money?

Turns over ₹3 Cr a year. Of every ₹100 of sales, about ₹25 reaches shareholders as profit, with ₹39 left at the operating level before interest, tax and depreciation.

Who are its competitors?

The closest listed comparisons in its industry are MARUTI SUZUKI INDIA LTD., TITAN COMPANY LIMITED, TRENT LTD, AVENUE SUPERMARTS LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 2 years revenue moved -33% while net margin moved +61% 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-33%

Margin effect+61%

DalalBaazaar Score

54/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ Profits have swung sharply from year to year — earnings are hard to forecast

Quality vs. Valuation

Company Quality

52/ 100

Average

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

Valuation

72/ 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

10.6x

3Y Median

17.9x

33 monthly readings · mean 17.8x · range 6.9x–34.3x

Sector Median

69.2x

median of 4 sector peers

🟢Current valuation is approximately 41% below its 3y median of 17.9x. 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 85% below the peer median of 69.2x.

vs. its own history

Cheap

17.9x median over 33 months · -41%

vs. sector peers

Cheap

69.2x median of 4 peers · -85%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

13.8x

PEG

2.83

What's Good / What's Bad

🟢 What's Going Well1

Margins are improving
EBITDA margin is up from 25.3% to 39.3% over 2 years.

🔴 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 -₹1 Cr in the latest year.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 25.3% to 39.3%. 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 41% 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 85% 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

1EBITDA margin holds above 37%✓ 39.3%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Free cash flow remains positive✗ -₹1 Cr
Profit that never becomes cash eventually stops being profit.
3Debt / EBITDA stays below 2x✓ 1.1x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
4Valuation vs its own median of 17.9x✓ 10.6x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

3 / 4 checks passed

✗ Healthy net margin (≥ 10%)
✓ 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

2 good · 9 neutral · 0 weak

Market Cap

₹16 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

10.6x

Cheap

Cheap against the generic band

P/B Ratio

Not available

No data

Source didn't return this field

EPS (TTM)

₹25.58

Profitable

Profitable on a per-share basis

ROE

Not available

No data

Source didn't return this field

ROCE

Not available

No data

Source didn't return this field

Debt/Equity

Not available

No data

Source didn't return this field

Revenue Growth (YoY)

Not available

No data

Source didn't return this field

Profit Growth (YoY)

Not available

No data

Source didn't return this field

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

Not available

No data

Source didn't return this field

More Metrics

Operating Margin

0.0%

Weak

Thin margins leave little room for error

Net Margin

0.0%

Weak

Very little revenue reaches the bottom line

52W Range Position

42%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

283.9 / 278.9

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

37.3

Neutral momentum

Financial Trend (3-Year)

Metric	FY22	FY23	FY24	2Y CAGR
Revenue	₹5 Cr	₹6 Cr	₹3 Cr	-18.2%
EBITDA	₹1 Cr	₹2 Cr	₹1 Cr	+1.9%
EBITDA Margin	25.3%	43.2%	39.3%	—
PAT (Net Profit)	₹1 Cr	₹2 Cr	₹1 Cr	+3.7%
EPS	₹12.54	₹27.8	₹13.5	+3.8%
ROE	7.2%	13.7%	6.2%	—
ROCE	8.8%	16.4%	7.7%	—
Total Debt	₹1 Cr	₹1 Cr	₹1 Cr	+2.4%
Free Cash Flow	₹1 Cr	-₹1 Cr	-₹1 Cr	—

🔴 Revenue has shrunk at 18.2% a year over 2 years.

🟡 EBITDA has been broadly flat over 2 years (1.9% a year).

🟢 EBITDA Margin has risen from 25.3% to 39.3% over 2 years (+14.0 pts).

🟢 PAT (Net Profit) has grown at 3.7% a year over 2 years.

🟢 EPS has grown at 3.8% a year over 2 years.

🟡 ROE has held roughly flat at 6.2% over 2 years.

🔴 ROCE has fallen from 8.8% to 7.7% over 2 years (-1.2 pts).

🔴 Total Debt has grown at 2.4% a year over 2 years.

🔴 Free Cash Flow has turned negative, from ₹1 Cr to -₹1 Cr.

Balance Sheet & Cash Flow — FY2025

Total Assets

—

Total Liabilities

—

Cash & Equivalents

—

Operating Cash Flow

—

Capex

—

Peer Comparison

Company	P/E	ROE
MARUTI SUZUKI INDIA LTD.	25.2x	13.4%
TITAN COMPANY LIMITED	68.5x	36.7%
TRENT LTD	87.2x	25.9%
AVENUE SUPERMARTS LIMITED	69.9x	12.7%

Recent News

6 general

Compare with

Equitymaster, 16 Oct

Niraj Ispat Industries Limited (NIRAJISPAT) Company Information

Simply Wall Street, 30 Sept

Niraj Ispat Industries Share Price Forecast to 2030

Univest, 22 Jul

Niraj Ispat Industries Ltd. Peer Comparison – Compare with Others

Value Research, 30 Aug

Niraj Ispat Industries Ltd

Equitypandit, 30 Dec

Compare with

Equitymaster, 16 Oct

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.
7 metrics couldn't be retrieved for this stock — this is more common for smaller or thinly-covered listings.

DalalBaazaar Thesis

StrongFinancial Health · Valuation

MiddlingBusiness Quality

WeakGrowth · Profitability · Risk

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.

1 of 4 tripwires tripped — Free cash flow remains positive · see Key things to watch ↑