ScoreWhy is Nirlon Ltd ?
1
High Debt Company with a Debt to Equity ratio (avg) of 2.50 times
- Poor long term growth as Operating profit has grown by an annual rate 19.83% of over the last 5 years
- High Debt Company with a Debt to Equity ratio (avg) of 2.50 times
2
Poor long term growth as Operating profit has grown by an annual rate 19.83% of over the last 5 years
3
The company has declared Positive results for the last 4 consecutive quarters
- PAT(Latest six months) At Rs 139.91 cr has Grown at 25.10%
- NET SALES(Q) Highest at Rs 170.94 cr
- OPERATING PROFIT TO INTEREST(Q) Highest at 5.09 times
4
With ROCE of 35.3, it has a Very Expensive valuation with a 4.9 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 20.54%, its profits have risen by 58.6% ; the PEG ratio of the company is 0.3
- At the current price, the company has a high dividend yield of 4.2
5
Despite the size of the company, domestic mutual funds hold only 0.2% of the company
- Domestic mutual funds have capability to do in-depth on-the-ground research on companies- their small stake may signify either they are not comfortable at the price or the business
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
20.54%
1.00
20.58%
Sensex
-5.98%
-0.45
13.24%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
16.12%
EBIT Growth (5y)
19.83%
EBIT to Interest (avg)
4.16
Debt to EBITDA (avg)
2.73
Net Debt to Equity (avg)
1.81
Sales to Capital Employed (avg)
0.36
Tax Ratio
6.98%
Dividend Payout Ratio
107.39%
Pledged Shares
0
Institutional Holding
15.86%
ROCE (avg)
26.17%
ROE (avg)
50.51%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
16
Industry P/E
32
Price to Book Value
11.88
EV to EBIT
13.78
EV to EBITDA
12.31
EV to Capital Employed
4.87
EV to Sales
9.59
PEG Ratio
0.27
Dividend Yield
4.21%
ROCE (Latest)
35.34%
ROE (Latest)
73.83%
Loading Valuation Snapshot...
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bullish
Bullish
Moving Averages
Bullish (Daily)
KST
Bullish
Mildly Bearish
Dow Theory
Bullish
Bullish
OBV
No Trend
Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend17What is working for the Company
PAT(Latest six months)
At Rs 139.91 cr has Grown at 25.10%
NET SALES(Q)
Highest at Rs 170.94 cr
OPERATING PROFIT TO INTEREST(Q)
Highest at 5.09 times
PBDIT(Q)
Highest at Rs 132.34 cr.
PBT LESS OI(Q)
Highest at Rs 92.18 cr.
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 70.59 cr has Fallen at -14.2% (vs previous 4Q average
Loading Valuation Snapshot...
Here's what is working for Nirlon
Net Sales - Quarterly
Highest at Rs 170.94 cr and Grown
each quarter in the last five quartersMOJO Watch
Near term sales trend is very positive
Net Sales (Rs Cr)
Operating Profit to Interest - Quarterly
Highest at 5.09 times
in the last five quartersMOJO Watch
The company's ability to manage interest payments is improving
Operating Profit to Interest
Operating Profit (PBDIT) - Quarterly
Highest at Rs 132.34 cr. and Grown
each quarter in the last five quartersMOJO Watch
Near term Operating Profit trend is quite positive
Operating Profit (Rs Cr)
Profit Before Tax less Other Income (PBT) - Quarterly
Highest at Rs 92.18 cr. and Grown
each quarter in the last five quartersMOJO Watch
Near term PBT trend is very positive
PBT less Other Income (Rs Cr)
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 70.59 cr has Fallen at -14.2% (vs previous 4Q average)
over average PAT of the previous four quarters of Rs 82.23 CrMOJO Watch
Near term PAT trend is very negative
PAT (Rs Cr)
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
GET THE MARKETSMOJO APP
Company
Stocks
Portfolio
"Investment in securities markets are subject to market risk. Read all the related documents carefully before investing."
