Nikhil Adhesives Ltd () Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Vipul Organics

Aarti Surfactant

Sudarshan Pharma

Nikhil Adhesives

Black Rose Indus

HP Adhesives

Kronox Lab

Jayant Agro Org.

Plastiblends (I)

Bhatia Colour

Chembond Chemic.

Why is Nikhil Adhesives Ltd ?

Poor long term growth as Net Sales has grown by an annual rate of 8.55% and Operating profit at 17.96% over the last 5 years

Negative results in Sep 25

OPERATING CF(Y) Lowest at Rs 6.90 Cr
PAT(Latest six months) At Rs 6.74 cr has Grown at -30.01%
CASH AND CASH EQUIVALENTS(HY) Lowest at Rs 2.13 cr

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -22.95% returns in the last 1 year, the stock has also underperformed BSE500 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Specialty Chemicals)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Nikhil Adhesives for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Nikhil Adhesives

-22.95%

-0.48

47.92%

Sensex

4.83%

0.41

11.83%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

8.55%

EBIT Growth (5y)

17.96%

EBIT to Interest (avg)

4.80

Debt to EBITDA (avg)

1.43

Net Debt to Equity (avg)

0.32

Sales to Capital Employed (avg)

4.54

Tax Ratio

31.53%

Dividend Payout Ratio

6.01%

Pledged Shares

Institutional Holding

0.38%

ROCE (avg)

21.15%

ROE (avg)

21.75%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

3.20

EV to EBIT

17.66

EV to EBITDA

13.81

EV to Capital Employed

2.67

EV to Sales

0.90

PEG Ratio

Dividend Yield

0.23%

ROCE (Latest)

15.12%

ROE (Latest)

10.59%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bearish

Dow Theory

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

4What is working for the Company

OPERATING PROFIT TO INTEREST(Q)

Highest at 5.09 times

DPS(Y)

Highest at Rs 0.22

DEBT-EQUITY RATIO(HY)

Lowest at 0.33 times

-10What is not working for the Company

OPERATING CF(Y)

Lowest at Rs 6.90 Cr

PAT(Latest six months)

At Rs 6.74 cr has Grown at -30.01%

CASH AND CASH EQUIVALENTS(HY)

Lowest at Rs 2.13 cr

DEBTORS TURNOVER RATIO(HY)

Lowest at 4.70 times

PBDIT(Q)

Lowest at Rs 8.25 cr.

OPERATING PROFIT TO NET SALES (Q)

Lowest at 6.30%

EPS(Q)

Lowest at Rs 0.69

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Here's what is working for Nikhil Adhesives

Operating Profit to Interest - Quarterly

Highest at 5.09 times

in the last five quarters

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Debt-Equity Ratio - Half Yearly

Lowest at 0.33 times

in the last five half yearly periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Dividend per Share (DPS) - Annually

Highest at Rs 0.22

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (Rs)

Here's what is not working for Nikhil Adhesives

Operating Cash Flow - Annually

Lowest at Rs 6.90 Cr and Fallen

each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (Rs Cr)

Profit After Tax (PAT) - Latest six months

At Rs 6.74 cr has Grown at -30.01%

Year on Year (YoY)

MOJO Watch

Near term PAT trend is negative

PAT (Rs Cr)

Operating Profit (PBDIT) - Quarterly

Lowest at Rs 8.25 cr.

in the last five quarters

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (Rs Cr)

Operating Profit Margin - Quarterly

Lowest at 6.30%

in the last five quarters

MOJO Watch

Company's efficiency has deteriorated

Operating Profit to Sales

Earnings per Share (EPS) - Quarterly

Lowest at Rs 0.69

in the last five quarters

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (Rs)

Cash and Cash Equivalents - Half Yearly

Lowest at Rs 2.13 cr

in the last six half yearly periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debtors Turnover Ratio- Half Yearly

Lowest at 4.70 times

in the last five half yearly periods

MOJO Watch

Company's pace of settling its Debtors has slowed

Debtors Turnover Ratio