Nirlon Limited

Real Estate — Real Estate Services · NSE

₹627.00+₹1.25 (+0.20%)

DalalBaazaar Score

70 / 100

🟢 Good

Verdict

REASONABLE

Risk

Moderate

Driven by high debt relative to equity, small-cap size, which brings sharper price swings.

In simple words: Strong business and financial position, with modest growth. Debt is 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 Nirlon Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Nirlon Limited engages in the development and management of an industrial/information technology park.

IndustryReal Estate Services

SectorReal Estate

Employees3

Annual revenue₹664 Cr

How does it make money?

Turns over ₹664 Cr a year. Of every ₹100 of sales, about ₹52 reaches shareholders as profit, with ₹81 left at the operating level before interest, tax and depreciation. Each of its 3 employees supports ₹221.31 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹221.31 Cr

Who are its competitors?

The closest listed comparisons in its industry are DLF LIMITED, GODREJ PROPERTIES LTD, OBEROI REALTY 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?The numbers suggest a real one

ROCE has stayed above 15% in every year available and stands at 23.3%. Returns that high normally get competed away; when they persist, something is protecting them, and its ROE of 73.8% against a peer median of 10.3% is consistent with that. What that something is — brand, scale, switching costs, regulation — the accounts cannot tell you.

Peer median ROE10.3%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +17% while net margin moved +87% 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+17%

Margin effect+87%

DalalBaazaar Score

70/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of 0.20 — historically steadier than the index
✗ Small Cap: thinner liquidity and sharper drawdowns are normal
✗ High leverage magnifies any downturn in earnings

Quality vs. Valuation

Company Quality

76/ 100

Good

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

Valuation

71/ 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

15.8x

Sector Median

30.2x

median of 3 sector peers

🟢Against its sector it trades 48% below the peer median of 30.2x.

vs. its own history

Not enough price and earnings history

vs. sector peers

Cheap

30.2x median of 3 peers · -48%

vs. generic bands

Fair

15x–35x

EV/EBITDA

12.7x

PEG

0.53

What's Good / What's Bad

🟢 What's Going Well6

Margins are improving
EBITDA margin is up from 76.8% to 80.6% over 3 years.
Cash generation is improving
Free cash flow is up 49% over 3 years.
Return on equity is rising
ROE has improved from 39.3% to 73.8%.
Return on capital is rising
ROCE has improved from 17.5% to 23.3%.
High return on capital employed
ROCE of 23.3% 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 2.45x — earnings must service borrowings before shareholders see anything.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 23.3% 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 76.8% to 80.6%. 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 48% 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 2.45x. Interest is payable whether or not the business has a good year.
Growth barely outpaces inflation
Revenue compounding at 5.4% 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
Small 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 79%✓ 80.6%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA stays below 2x✗ 2.1x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
3Revenue growth stays above 4% a year✓ 5.4% CAGR
Latest reported year was 3.3%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
4Free cash flow remains positive✓ ₹434 Cr
Profit that never becomes cash eventually stops being profit.
5ROCE stays above 20%✓ 23.3%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

9 / 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

₹5,650 Cr

Small Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

15.8x

Fair

Fairly valued against the generic band

P/B Ratio

12.06x

Rich

Steep premium to book — needs high, durable returns to justify

EPS (TTM)

₹39.61

Profitable

Profitable on a per-share basis

ROE

73.8%

Strong

Strong capital efficiency

ROCE

23.3%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

2.45x

High

High leverage

Revenue Growth (YoY)

3.3%

Modest

Modest growth

Profit Growth (YoY)

18.8%

Healthy

Profits growing at a healthy clip

Dividend Yield

4.78%

Healthy

Meaningful cash return while you hold the stock

Free Cash Flow

₹434 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

68.5%

Good

Healthy core-business profitability

Net Margin

52.9%

Good

Strong bottom-line conversion

Current Ratio

1.77

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.20

Defensive

Steadier than the market

52W Range Position

74%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

612.8 / 620.9

Bearish alignment (short < long)

RSI (14)

75.5

Overbought zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹567 Cr	₹597 Cr	₹632 Cr	₹664 Cr	+5.4%
EBITDA	₹436 Cr	₹481 Cr	₹512 Cr	₹535 Cr	+7.1%
EBITDA Margin	76.8%	80.5%	81.0%	80.6%	—
PAT (Net Profit)	₹158 Cr	₹206 Cr	₹218 Cr	₹346 Cr	+29.9%
EPS	₹17.52	₹22.81	₹24.21	₹38.39	+29.9%
ROE	39.3%	55.1%	61.1%	73.8%	—
ROCE	17.5%	22.0%	22.9%	23.3%	—
Total Debt	₹1,145 Cr	₹1,146 Cr	₹1,146 Cr	₹1,147 Cr	+0.1%
Free Cash Flow	₹292 Cr	₹370 Cr	₹433 Cr	₹434 Cr	+14.2%

🟢 Revenue has grown at 5.4% a year over 3 years.

🟢 EBITDA has grown at 7.1% a year over 3 years.

🟢 EBITDA Margin has risen from 76.8% to 80.6% over 3 years (+3.8 pts).

🟢 PAT (Net Profit) has grown at 29.9% a year over 3 years.

🟢 EPS has grown at 29.9% a year over 3 years.

🟢 ROE has risen from 39.3% to 73.8% over 3 years (+34.5 pts).

🟢 ROCE has risen from 17.5% to 23.3% over 3 years (+5.8 pts).

🟡 Total Debt has been broadly flat over 3 years (0.1% a year).

🟢 Free Cash Flow has grown at 14.2% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹2,250 Cr

Total Liabilities

₹1,781 Cr

Cash & Equivalents

₹10 Cr

Operating Cash Flow

₹477 Cr

Capex

-₹44 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

94.2%

Corporate Actions

Dividend Rate

₹30

Ex-Dividend Date

03 Sept 2026

Peer Comparison

Company	P/E	ROE
DLF LIMITED	36.6x	10.3%
GODREJ PROPERTIES LTD	30.2x	8.4%
OBEROI REALTY LIMITED	23.5x	14.7%

Recent News

1 positive1 mixed4 general

Nirlon sees 15.06% stake consolidation via inter-se share transfer

scanx.trade, 18 Oct

Nirlon (NIRLON) Share/Stock Price Live, NSE

TechGraph, 08 Oct

NIRLON Stock Price and Chart — NSE:NIRLON

TradingView, 20 Apr

Nirlon Ltd Declares ₹15 Interim Dividend; Record Date Fixed As February 20

HDFC Sky, 20 FebCapital return

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

Nirlon Stock Prediction 2026: Analyst Targets, Forecast and Key Levels

Univest, 23 JunAnalyst view

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

Brookfield entity buys additional 1.7% stake in Nirlon; Aica Kogyo acquires over 17% shares in Stylam...

Moneycontrol.com, 18 Feb

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.
RSI is in overbought territory — momentum entries here carry more short-term pullback risk.

DalalBaazaar Thesis

StrongBusiness Quality · Growth · Profitability

MiddlingFinancial Health · Valuation · Risk

Points for each in the Score ↑

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.

1 of 5 tripwires tripped — Debt / EBITDA stays below 2x · see Key things to watch ↑