ScoreWhy is Nirlon Ltd ?
1
High Debt Company with a Debt to Equity ratio (avg) of 2.50 times
- High Debt Company with a Debt to Equity ratio (avg) of 2.50 times
2
Flat results in Jun 26
- PAT(Q) At Rs 69.38 cr has Fallen at -19.8% (vs previous 4Q average)
3
With ROCE of 35.3, it has a Very Expensive valuation with a 4.7 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 10.57%, its profits have risen by 57.4% ; the PEG ratio of the company is 0.3
- At the current price, the company has a high dividend yield of 5.1
4
Falling Participation by Institutional Investors
- Institutional investors have decreased their stake by -11.36% over the previous quarter and collectively hold 4.5% of the company
- These investors have better capability and resources to analyse fundamentals of companies than most retail investors
5
Market Beating Performance
- Even though the market (BSE500) has generated negative returns of -2.96% in the last 1 year, the stock has been able to generate 10.57% returns
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Nirlon should be less than 10%
- Overall Portfolio exposure to Diversified Commercial Services should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Diversified Commercial Services)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Nirlon for you?
Low Risk, High Return
Absolute
Risk Adjusted
Volatility
Nirlon
10.57%
0.49
21.43%
Sensex
-9.4%
-0.70
13.49%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
16.66%
EBIT Growth (5y)
21.09%
EBIT to Interest (avg)
3.72
Debt to EBITDA (avg)
2.73
Net Debt to Equity (avg)
1.81
Sales to Capital Employed (avg)
0.36
Tax Ratio
4.84%
Dividend Payout Ratio
78.14%
Pledged Shares
0
Institutional Holding
4.50%
ROCE (avg)
26.17%
ROE (avg)
50.51%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
15
Industry P/E
31
Price to Book Value
11.39
EV to EBIT
13.25
EV to EBITDA
11.83
EV to Capital Employed
4.69
EV to Sales
9.17
PEG Ratio
0.26
Dividend Yield
5.07%
ROCE (Latest)
35.34%
ROE (Latest)
76.17%
Loading Valuation Snapshot...
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bearish
Bullish
Dow Theory
No Trend
Bullish
OBV
No Trend
Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend7What is working for the Company
PAT(Latest six months)
At Rs 139.97 cr has Grown at 25.03%
CASH AND CASH EQUIVALENTS(HY)
Highest at Rs 297.78 cr
DEBT-EQUITY RATIO(HY)
Lowest at 2.45 times
DEBTORS TURNOVER RATIO(HY)
Highest at 200.95 times
-2What is not working for the Company
PAT(Q)
At Rs 69.38 cr has Fallen at -19.8% (vs previous 4Q average
Loading Valuation Snapshot...
Here's what is working for Nirlon
Cash and Cash Equivalents - Half Yearly
Highest at Rs 297.78 cr
in the last six half yearly periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Debt-Equity Ratio - Half Yearly
Lowest at 2.45 times
in the last five half yearly periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Debtors Turnover Ratio- Half Yearly
Highest at 200.95 times
in the last five half yearly periodsMOJO Watch
Company has been able to settle its Debtors faster
Debtors Turnover Ratio
Here's what is not working for Nirlon
Profit After Tax (PAT) - Quarterly
At Rs 69.38 cr has Fallen at -19.8% (vs previous 4Q average)
over average PAT of the previous four quarters of Rs 86.50 CrMOJO Watch
Near term PAT trend is very negative
PAT (Rs Cr)
Non Operating Income - Quarterly
Highest at Rs 4.36 cr
in the last five quartersMOJO Watch
Increased income from non business activities may not be sustainable
Non Operating Income
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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