Nitta Gelatin India Limited

Basic Materials — Specialty Chemicals · NSE

₹1,625.50−₹15.20 (−0.93%)

DalalBaazaar Score

69 / 100

🟢 Good

Verdict

REASONABLE

Risk

Moderate

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

In simple words: Strong business and financial position, 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, 6:10 pm

Mixed / neutral. No major red flags jump out, but nothing here screams "obviously cheap" either. This is a name that needs a peer comparison and a view on near-term earnings triggers before sizing a position.

Understanding the Business

Company site ↗

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

What does this company do?

Nitta Gelatin India Limited engages in the manufacture and sale of ossein, gelatin, and collagen peptide in India and internationally.

IndustrySpecialty Chemicals

SectorBasic Materials

Employees471

Annual revenue₹568 Cr

How does it make money?

Turns over ₹568 Cr a year. Of every ₹100 of sales, about ₹17 reaches shareholders as profit, with ₹26 left at the operating level before interest, tax and depreciation. Each of its 471 employees supports ₹1.21 Cr of revenue a year, the signature of a capital- or asset-led business.

EBITDA margin26.4%

Net margin17.1%

Revenue / employee₹1.21 Cr

Who are its competitors?

The closest listed comparisons in its industry are ASIAN PAINTS LIMITED, PIDILITE INDUSTRIES LTD, SRF LTD, UPL LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

ASIAN PAINTS LIMITEDP/E 46.9x · ROE 22.3%

PIDILITE INDUSTRIES LTDP/E 57.8x · ROE 24.4%

SRF LTDP/E 33.8x · ROE 15.4%

UPL LIMITEDP/E 21.5x · ROE 6.1%

What is its competitive advantage?The numbers suggest a real one

ROCE has stayed above 15% in every year available and stands at 25.7%. Returns that high normally get competed away; when they persist, something is protecting them, and its ROE of 19.0% against a peer median of 22.3% is consistent with that. What that something is — brand, scale, switching costs, regulation — the accounts cannot tell you.

ROCE25.7%

ROE19.0%

Peer median ROE22.3%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +1% while net margin moved +38% 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+1%

Margin effect+38%

DalalBaazaar Score

69/ 100

Good

Weighted across six categories. Every point is explained below.

✗ Revenue CAGR of only 0.2% — barely ahead of inflation
• Profit CAGR of 11.4%

Quality vs. Valuation

Company Quality

69/ 100

Good

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

Valuation

75/ 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

14.2x

Sector Median

40.4x

median of 4 sector peers

🟢Against its sector it trades 65% below the peer median of 40.4x.

vs. its own history

Not enough price and earnings history

vs. sector peers

Cheap

40.4x median of 4 peers · -65%

vs. generic bands

Cheap

Below 15x

P/E (Trailing)

14.2x

P/B

2.89x

EV/EBITDA

9.8x

PEG

1.24

Dividend Yield

0.43%

What's Good / What's Bad

🟢 What's Going Well4

Margins are improving
EBITDA margin is up from 20.1% to 26.4% over 3 years.
Debt is being paid down
Total debt is down 89% over 3 years.
High return on capital employed
ROCE of 25.7% 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 Attention2

Return on equity is falling
ROE has dropped from 26.3% to 19.0% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 36.0% to 25.7% — 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?

Capital compounds at a high rate
ROCE of 25.7% 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 20.1% to 26.4%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Deleveraging frees up earnings
Debt is down 89% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
Cheaper than its peers
It trades 65% 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?

Growth barely outpaces inflation
Revenue compounding at 0.2% 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.
Returns on shareholder capital are falling
ROE has dropped from 26.3% to 19.0%. Each rupee of equity earns less than it did, so profit growth increasingly depends on raising more capital rather than on the existing base working harder.
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 24%✓ 26.4%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Revenue growth stays above 4% a year✗ 0.2% CAGR
Latest reported year was -0.3%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
3Free cash flow remains positive✓ ₹70 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.0x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 23%✓ 25.7%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

10 / 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 · 4 neutral · 1 weak

Market Cap

₹1,476 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

14.2x

Cheap

Cheap against the generic band

P/B Ratio

2.89x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹114.39

Profitable

Profitable on a per-share basis

ROE

19.0%

Strong

Strong capital efficiency

ROCE

25.7%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.82x

Moderate

Moderate leverage

Revenue Growth (YoY)

-0.3%

Shrinking

Sales are contracting

Profit Growth (YoY)

31.3%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.43%

Modest

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

Free Cash Flow

₹70 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

CMP

₹1,625.5

Operating Margin

24.2%

Good

Healthy core-business profitability

Net Margin

17.5%

Good

Strong bottom-line conversion

Current Ratio

6.24

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.62

Defensive

Steadier than the market

52W Range Position

62%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

1676.7 / 1650.7

Bullish alignment (short > long)

RSI (14)

21.1

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹565 Cr	₹523 Cr	₹517 Cr	₹568 Cr	+0.2%
EBITDA	₹114 Cr	₹135 Cr	₹117 Cr	₹150 Cr	+9.8%
EBITDA Margin	20.1%	25.8%	22.6%	26.4%	—
PAT (Net Profit)	₹70 Cr	₹83 Cr	₹84 Cr	₹97 Cr	+11.4%
EPS	₹77.44	₹91.02	₹92.46	₹107.11	+11.4%
ROE	26.3%	24.1%	19.9%	19.0%	—
ROCE	36.0%	33.0%	25.8%	25.7%	—
Total Debt	₹39 Cr	₹14 Cr	₹31 Cr	₹4 Cr	-52.4%
Free Cash Flow	₹79 Cr	₹78 Cr	₹41 Cr	₹70 Cr	-4.0%

🟡 Revenue has been broadly flat over 3 years (0.2% a year).

🟢 EBITDA has grown at 9.8% a year over 3 years.

🟢 EBITDA Margin has risen from 20.1% to 26.4% over 3 years (+6.3 pts).

🟢 PAT (Net Profit) has grown at 11.4% a year over 3 years.

🟢 EPS has grown at 11.4% a year over 3 years.

🔴 ROE has fallen from 26.3% to 19.0% over 3 years (-7.3 pts).

🔴 ROCE has fallen from 36.0% to 25.7% over 3 years (-10.3 pts).

🟢 Total Debt has shrunk at 52.4% a year over 3 years.

🔴 Free Cash Flow has shrunk at 4.0% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹586 Cr

Total Liabilities

₹71 Cr

Total Debt

₹4 Cr

Cash & Equivalents

₹14 Cr

Operating Cash Flow

₹122 Cr

Capex

-₹52 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

74.5%

Corporate Actions

Dividend Rate

₹7

Ex-Dividend Date

24 Jul 2026

Peer Comparison

Company	P/E	ROE
ASIAN PAINTS LIMITED	46.9x	22.3%
PIDILITE INDUSTRIES LTD	57.8x	24.4%
SRF LTD	33.8x	15.4%
UPL LIMITED	21.5x	6.1%

Recent News

2 positive1 mixed3 general

Is Nitta Gelatin India the Best Stock in Its Sector? A Look at the Numbers

Univest, 16 Oct

Nitta Gelatin India Limited (NITTAGELA.NS) stock price, news, quote and history

Yahoo Finance Australia, 09 Oct

NITTAGELA Stock Price and Chart — NSE:NITTAGELA

TradingView, 20 Apr

Nitta Gelatin India net profit surges 30% in Q1FY26 on margin gains

scanx.trade, 03 AugResults

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

Nitta Gelatin India consolidated net profit rises 31.35% in the June 2026 quarter

Business Standard, 01 AugResults

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

Nitta Gelatin India Ltd. Share Price Declines: Key Insights

Univest, 03 AugPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

Watch Items

Revenue growth is negative (-0.3%) 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.
RSI is in oversold territory — could mean either a bargain or a stock still falling for good reason. Check the 'why' before assuming reversal.

DalalBaazaar Thesis

🟢Business QualityStrong15.2/20

🟢Financial HealthStrong16.6/20

🟡GrowthModest10.4/20

🟡ProfitabilityModerate9.5/15

🟢ValuationAttractive11/15

🟡RiskModerate6.2/10

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.

This thesis breaks if

✓EBITDA margin holds above 24%26.4%
✗Revenue growth stays above 4% a year0.2% CAGR
✓Free cash flow remains positive₹70 Cr
✓Debt / EBITDA stays below 2x0.0x
✓ROCE stays above 23%25.7%