Nirav Commercials Limited

Basic Materials — Aluminum · BSE

₹698.45₹0.00 (0.00%)

DalalBaazaar Score

44 / 100

🟡 Moderate

Verdict

CAUTION

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, but sales are shrinking. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:44 pm

Understanding the Business

Company site ↗

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

What does this company do?

Nirav Commercials Limited manufactures and sells aluminum grills, doors, and windows in India. The company also provides surface coatings. It offers its products under the Decofloor, Decoframe, Decogrille, and Decotech brands. The company exports its products.

IndustryAluminum

SectorBasic Materials

Employees11

Annual revenue₹13 Cr

How does it make money?

Turns over ₹13 Cr a year. Of every ₹100 of sales, about ₹3 reaches shareholders as profit, with ₹5 left at the operating level before interest, tax and depreciation. Each of its 11 employees supports ₹1.17 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹1.17 Cr

Who are its competitors?

The closest listed comparisons in its industry are HINDALCO INDUSTRIES LTD, VEDANTA LIMITED, TATA STEEL LIMITED, JSW STEEL 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 1.9% 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 ROE18.7%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +34% while net margin moved -53% 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+34%

Margin effect-53%

DalalBaazaar Score

44/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ ROCE of 1.9% is below 10% — capital is not working hard
• ROCE has been broadly stable
✗ EBITDA margin of 4.6% is thin — little cushion if costs rise
✗ Net margin of 6.2% is slim
• Revenue has compounded at 10.3% a year, which is the base these returns are earned on

Quality vs. Valuation

Company Quality

40/ 100

Weak

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

Valuation

47/ 100

Fair

What you are being asked to pay, ignoring how good the business is.

Weak on business quality and not cheap enough to compensate.

Historical Valuation

Current P/E

45.1x

3Y Median

97.7x

40 monthly readings · mean 238.0x · range 24.8x–809.9x

Sector Median

12.2x

median of 4 sector peers

🟢Current valuation is approximately 54% below its 3y median of 97.7x. 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 271% above the peer median of 12.2x.

vs. its own history

Cheap

97.7x median over 40 months · -54%

vs. sector peers

Expensive

12.2x median of 4 peers · +271%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

45.9x

PEG

—

What's Good / What's Bad

🟢 What's Going Well1

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

4 items require attention · 1 high · 3 watch

🔴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.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹3 Cr in the latest year.
🟡Profit is decliningFinancial
Net profit is down 37% over 3 years.
🟡Margins are compressingFinancial
EBITDA margin is down 4.9 points over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Priced below its own history
The stock trades 54% 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.
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?

Margins are being competed away
EBITDA margin has fallen from 9.5% to 4.6%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
A premium to the sector to defend
It trades 271% above the peer median. That premium needs a reason that persists, or it closes.
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 8% a year✓ 10.3% CAGR
Latest reported year was -99.0%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 3%✓ 4.6%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹3 Cr
Profit that never becomes cash eventually stops being profit.
4Interest cover stays above 3x✗ 2.5x
How much operating profit can fall before interest stops being comfortably covered.
5ROCE stays above 8%✗ 1.9%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

4 / 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
✓ 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

3 good · 3 neutral · 5 weak

Market Cap

₹27 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

45.1x

Expensive

Expensive — verify against sector peers

P/B Ratio

0.87x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹15.48

Profitable

Profitable on a per-share basis

ROE

1.4%

Weak

Weak capital efficiency

ROCE

1.9%

Weak

Low return on total capital employed

Debt/Equity

Not available

No data

Source didn't return this field

Revenue Growth (YoY)

-99.0%

Shrinking

Sales are contracting

Profit Growth (YoY)

878.2%

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

-₹3 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

-666.7%

Weak

Thin margins leave little room for error

Net Margin

6.2%

Average

Average bottom-line conversion

Current Ratio

33.71

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.48

Defensive

Steadier than the market

52W Range Position

37%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

689.6 / 689.5

Bullish alignment (short > long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

53.8

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹10 Cr	₹11 Cr	₹10 Cr	₹13 Cr	+10.3%
EBITDA	₹1 Cr	₹0 Cr	₹0 Cr	₹1 Cr	-13.2%
EBITDA Margin	9.5%	1.1%	4.3%	4.6%	—
PAT (Net Profit)	₹1 Cr	₹0 Cr	₹0 Cr	₹0 Cr	-14.1%
EPS	₹17.11	₹8.18	₹1.11	₹10.85	-14.1%
ROE	2.3%	1.1%	0.1%	1.4%	—
ROCE	3.1%	1.6%	0.8%	1.9%	—
Total Debt	—	₹0 Cr	₹1 Cr	—	—
Free Cash Flow	₹4 Cr	₹3 Cr	-₹1 Cr	-₹3 Cr	—

🟢 Revenue has grown at 10.3% a year over 3 years.

🔴 EBITDA has shrunk at 13.2% a year over 3 years.

🔴 EBITDA Margin has fallen from 9.5% to 4.6% over 3 years (-4.9 pts).

🔴 PAT (Net Profit) has shrunk at 14.1% a year over 3 years.

🔴 EPS has shrunk at 14.1% a year over 3 years.

🟡 ROE has held roughly flat at 1.4% over 3 years.

🔴 ROCE has fallen from 3.1% to 1.9% over 3 years (-1.2 pts).

🔴 Free Cash Flow has turned negative, from ₹4 Cr to -₹3 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹32 Cr

Total Liabilities

₹0 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

-₹3 Cr

Capex

-₹0 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

88.6%

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%
JSW STEEL LIMITED	12.0x	24.7%

Recent News

1 negative5 general

Nirav Commercials Ltd. Key Financial Ratios – Valuation, Profitability & More

Value Research, 10 Sept

ALUFLUOR Stock Price and Chart — NSE:ALUFLUOR

TradingView, 17 Aug

Jivial Industries Limited Stock News: Price Jumps 10.15%

Univest, 28 Jul

HRS Stock Price and Chart — BSE:HRS

TradingView, 18 Dec

Stock market update: 36 stocks hit 52-week highs on BSE on Thursday

The Economic Times, 21 Jun

PNB share price: PSU bank still below 2018 level when Mehul Choksi-led ₹14,000 crore fraud came to light

Livemint, 14 AprRegulatory

🔴Potentially negativeRegulatory and legal actions carry a financial cost and a governance question. The second usually matters more than the first.

Watch Items

Revenue growth is negative (-99.0%) 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.
1 metric couldn't be retrieved for this stock — this is more common for smaller or thinly-covered listings.

DalalBaazaar Thesis

MiddlingValuation

WeakBusiness Quality · Financial Health · Growth · Profitability · Risk

Points for each in the Score ↑

Weak on the fundamentals

Poor scores on business quality without a price low enough to compensate. There is no obvious argument for owning this over a stronger company at a similar valuation. 1 high-severity red flag sits above this conclusion and should be read first.

3 of 5 tripwires tripped — Free cash flow remains positive; Interest cover stays above 3x; ROCE stays above 8% · see Key things to watch ↑