ScoreWhy is Nikhil Adhesives Ltd ?
1
High Management Efficiency with a high ROCE of 26.93%
2
Strong ability to service debt as the company has a low Debt to EBITDA ratio of 1.31 times
3
Poor long term growth as Net Sales has grown by an annual rate of 6.10% and Operating profit at 7.77% over the last 5 years
4
Flat results in Dec 25
- 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 7.68 cr.
5
With ROCE of 15.1, it has a Very Attractive valuation with a 2.2 Enterprise value to Capital Employed
- The stock is trading at a discount compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of -7.92%, its profits have fallen by -8%
6
Majority shareholders : Promoters
7
Consistent Underperformance against the benchmark over the last 3 years
- Along with generating -7.92% returns in the last 1 year, the stock has also underperformed BSE500 in each of the last 3 annual periods
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Nikhil Adhesives should be less than 10%
- Overall Portfolio exposure to Specialty Chemicals should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Specialty Chemicals)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Nikhil Adhesives for you?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
Nikhil Adhesives
-7.39%
-0.17
47.49%
Sensex
4.91%
0.35
13.60%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
6.10%
EBIT Growth (5y)
7.77%
EBIT to Interest (avg)
4.64
Debt to EBITDA (avg)
1.43
Net Debt to Equity (avg)
0.32
Sales to Capital Employed (avg)
4.54
Tax Ratio
27.57%
Dividend Payout Ratio
6.01%
Pledged Shares
0
Institutional Holding
0.34%
ROCE (avg)
21.15%
ROE (avg)
21.86%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
22
Industry P/E
39
Price to Book Value
2.53
EV to EBIT
14.75
EV to EBITDA
11.46
EV to Capital Employed
2.16
EV to Sales
0.73
PEG Ratio
NA
Dividend Yield
0.29%
ROCE (Latest)
15.09%
ROE (Latest)
11.41%
Loading Valuation Snapshot...
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bullish
Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Mildly Bearish
Moving Averages
Mildly Bearish (Daily)
KST
Mildly Bullish
Bearish
Dow Theory
Mildly Bullish
Mildly Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend1What is working for the Company
DEBT-EQUITY RATIO(HY)
Lowest at 0.33 times
-5What is not working for the Company
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 7.68 cr.
OPERATING PROFIT TO NET SALES (Q)
Lowest at 5.77%
PBT LESS OI(Q)
Lowest at Rs 4.31 cr.
Loading Valuation Snapshot...
Here's what is working for Nikhil Adhesives
Debt-Equity Ratio - Half Yearly
Lowest at 0.33 times
in the last five half yearly periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Here's what is not working for Nikhil Adhesives
Operating Profit (PBDIT) - Quarterly
Lowest at Rs 7.68 cr.
in the last five quartersMOJO Watch
Near term Operating Profit trend is negative
Operating Profit (Rs Cr)
Operating Profit Margin - Quarterly
Lowest at 5.77%
in the last five quartersMOJO Watch
Company's efficiency has deteriorated
Operating Profit to Sales
Profit Before Tax less Other Income (PBT) - Quarterly
Lowest at Rs 4.31 cr.
in the last five quartersMOJO Watch
Near term PBT trend is negative
PBT less Other Income (Rs Cr)
Cash and Cash Equivalents - Half Yearly
Lowest at Rs 2.13 cr
in the last six half yearly periodsMOJO 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 periodsMOJO Watch
Company's pace of settling its Debtors has slowed
Debtors Turnover Ratio
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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