Nukleus Office Solutions Limited

Industrials — Specialty Business Services · BSE

₹173.00₹0.00 (0.00%)

DalalBaazaar Score

52 / 100

🟡 Moderate

Verdict

CAUTION

Risk

High

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, 6:57 pm

Understanding the Business

Company site ↗

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

What does this company do?

Nukleus Office Solutions Limited engages in the provision of shared office and co-working spaces in India.

IndustrySpecialty Business Services

SectorIndustrials

Employees52

Annual revenue₹35 Cr

How does it make money?

Turns over ₹35 Cr a year. Of every ₹100 of sales, about ₹6 reaches shareholders as profit, with ₹26 left at the operating level before interest, tax and depreciation. Each of its 52 employees supports ₹68.2 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹68.2 lakh

Who are its competitors?

The closest listed comparisons in its industry are LARSEN & TOUBRO LTD., SIEMENS LTD, ABB INDIA 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 5.8% 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 ROE15.2%

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +226% while net margin moved -3% 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+226%

Margin effect-3%

DalalBaazaar Score

52/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

55/ 100

Average

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

Valuation

70/ 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

32.6x

2Y Median

27.6x

21 monthly readings · mean 33.9x · range 20.6x–69.0x

Sector Median

88.8x

median of 3 sector peers

⚠️Current valuation is approximately 18% above its 2y median of 27.6x. Paying more than usual needs a reason — faster growth, a better balance sheet, or a re-rating you believe in.

🟢Against its sector it trades 63% below the peer median of 88.8x.

vs. its own history

Fair

27.6x median over 21 months · +18%

vs. sector peers

Cheap

88.8x median of 3 peers · -63%

vs. generic bands

Fair

15x–35x

EV/EBITDA

8.8x

PEG

0.70

What's Good / What's Bad

🟢 What's Going Well2

Margins are improving
EBITDA margin is up from 12.9% to 25.7% over 3 years.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 67.2% to 5.2% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 15.6% to 5.8% — often a sign of competition or overexpansion.

Red Flags

2 items require attention · 2 high

🔴Debt has risen sharplyFinancial
Total debt is up 6282% over 3 years, from ₹0 Cr to ₹18 Cr.
🔴Free cash flow negative for 4 yearsFinancial
The business has not covered its capital spending from operations for several years running, which has to be funded externally.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 12.9% to 25.7%. 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 63% 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?

Returns on shareholder capital are falling
ROE has dropped from 67.2% to 5.2%. 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.
Several serious flags at once
2 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

1Revenue growth stays above 36% a year✓ 48.3% CAGR
Latest reported year was 26.0%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 24%✓ 25.7%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹23 Cr
Profit that never becomes cash eventually stops being profit.
4Interest cover stays above 3x✓ 4.0x
How much operating profit can fall before interest stops being comfortably covered.
5Debt / EBITDA stays below 2x✓ 2.0x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.

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

4 good · 4 neutral · 3 weak

Market Cap

₹70 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

32.6x

Fair

Fairly valued against the generic band

P/B Ratio

1.68x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹5.3

Profitable

Profitable on a per-share basis

ROE

5.3%

Weak

Weak capital efficiency

ROCE

5.8%

Weak

Low return on total capital employed

Debt/Equity

0.44x

Low

Conservative leverage

Revenue Growth (YoY)

26.0%

Healthy

Healthy top-line growth

Profit Growth (YoY)

10.7%

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

-₹22 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

ROA

2.9%

Weak

Assets generate little profit

Operating Margin

9.0%

Average

Average margins

Net Margin

6.0%

Average

Average bottom-line conversion

Current Ratio

2.04

Comfortable

Healthy short-term liquidity

52W Range Position

23%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

187.8 / 197.5

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

3.7

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹11 Cr	₹17 Cr	₹29 Cr	₹35 Cr	+48.3%
EBITDA	₹1 Cr	₹3 Cr	₹7 Cr	₹9 Cr	+86.8%
EBITDA Margin	12.9%	19.1%	23.2%	25.7%	—
PAT (Net Profit)	₹1 Cr	₹1 Cr	₹2 Cr	₹2 Cr	+47.0%
EPS	₹1.67	₹2.97	₹7.53	—	—
ROE	67.2%	28.5%	5.3%	5.2%	—
ROCE	15.6%	13.2%	6.8%	5.8%	—
Total Debt	₹0 Cr	₹8 Cr	₹11 Cr	₹18 Cr	+299.6%
Free Cash Flow	-₹1 Cr	-₹2 Cr	-₹16 Cr	-₹23 Cr	—

🟢 Revenue has grown at 48.3% a year over 3 years.

🟢 EBITDA has grown at 86.8% a year over 3 years.

🟢 EBITDA Margin has risen from 12.9% to 25.7% over 3 years (+12.9 pts).

🟢 PAT (Net Profit) has grown at 47.0% a year over 3 years.

🔴 ROE has fallen from 67.2% to 5.2% over 3 years (-62.1 pts).

🔴 ROCE has fallen from 15.6% to 5.8% over 3 years (-9.7 pts).

🔴 Total Debt has grown at 299.6% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹77 Cr

Total Liabilities

₹35 Cr

Cash & Equivalents

₹8 Cr

Operating Cash Flow

₹4 Cr

Capex

-₹27 Cr

Shareholding (proxy)

Institutional Holding

1.3%

Insider Holding

81.6%

Peer Comparison

Company	P/E	ROE
LARSEN & TOUBRO LTD.	30.1x	15.2%
SIEMENS LTD	88.8x	10.5%
ABB INDIA LIMITED	92.6x	19.1%

Recent News

1 mixed5 general

Compare with

Equitymaster, 16 Oct

Nukleus Office Solutions hosts analyst meet with Last Stop Ads, Thermo Capital

scanx.trade, 28 SeptAnalyst view

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

Nukleus Office Solutions Ltd Financials – Balance Sheet, Profit & Loss, Cash Flow

Value Research, 27 Sept

Microcap stock Nukleus Office Solutions rise over 7% despite weak trends on Dalal Street

Livemint, 02 Sept

Nukleus Office Solutions schedules 7th AGM for September 25, 2026

scanx.trade, 25 Sept

Nukleus Office Solutions Ltd Key Financial Ratios – Valuation, Profitability & More

Value Research, 11 Sept

Watch Items

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

StrongGrowth

MiddlingFinancial Health · Valuation

WeakBusiness Quality · 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. 2 high-severity red flags sit above this conclusion and should be read first.

1 of 5 tripwires tripped — Free cash flow remains positive · see Key things to watch ↑