ScoreWhy is Nirlon Ltd ?
1
High Management Efficiency with a high ROCE of 25.13%
2
High Debt Company with a Debt to Equity ratio (avg) at 2.24 times
- Poor long term growth as Operating profit has grown by an annual rate 19.55% of over the last 5 years
- High Debt Company with a Debt to Equity ratio (avg) at 2.24 times
3
Poor long term growth as Operating profit has grown by an annual rate 19.55% of over the last 5 years
4
With a growth in Net Profit of 152.8%, the company declared Very Positive results in Sep 25
- The company has declared positive results for the last 2 consecutive quarters
- OPERATING CF(Y) Highest at Rs 480.09 Cr
- OPERATING PROFIT TO INTEREST(Q) Highest at 4.96 times
- DPS(Y) Highest at Rs 26.00
5
With ROCE of 34.7, it has a Very Expensive valuation with a 4 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 13.88%, its profits have risen by 51.7% ; the PEG ratio of the company is 0.3
- At the current price, the company has a high dividend yield of 5.3
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?
Medium Risk, Medium Return
Absolute
Risk Adjusted
Volatility
Nirlon
-5.18%
0.60
23.23%
Sensex
-4.3%
0.43
11.83%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
15.30%
EBIT Growth (5y)
19.02%
EBIT to Interest (avg)
5.13
Debt to EBITDA (avg)
2.92
Net Debt to Equity (avg)
1.83
Sales to Capital Employed (avg)
0.34
Tax Ratio
8.71%
Dividend Payout Ratio
107.39%
Pledged Shares
0
Institutional Holding
15.64%
ROCE (avg)
23.91%
ROE (avg)
43.98%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
14
Industry P/E
32
Price to Book Value
9.97
EV to EBIT
11.97
EV to EBITDA
10.69
EV to Capital Employed
4.17
EV to Sales
8.34
PEG Ratio
0.27
Dividend Yield
5.07%
ROCE (Latest)
34.69%
ROE (Latest)
70.91%
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TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bullish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Bullish
Moving Averages
Mildly Bearish (Daily)
KST
Mildly Bullish
Mildly Bearish
Dow Theory
Mildly Bullish
Mildly Bearish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend13What is working for the Company
PAT(Latest six months)
At Rs 216.98 cr has Grown at 89.02%
CASH AND CASH EQUIVALENTS(HY)
Highest at Rs 297.06 cr
DEBT-EQUITY RATIO(HY)
Lowest at 2.47 times
NET SALES(Q)
Highest at Rs 169.93 cr
PBDIT(Q)
Highest at Rs 131.73 cr.
PBT LESS OI(Q)
Highest at Rs 90.03 cr.
-3What is not working for the Company
PAT(Q)
At Rs 69.32 cr has Fallen at -12.8% (vs previous 4Q average
DEBTORS TURNOVER RATIO(HY)
Lowest at 64.77 times
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Here's what is working for Nirlon
Net Sales - Quarterly
Highest at Rs 169.93 cr
in the last five quartersMOJO Watch
Near term sales trend is positive
Net Sales (Rs Cr)
Operating Profit (PBDIT) - Quarterly
Highest at Rs 131.73 cr.
in the last five quartersMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (Rs Cr)
Profit Before Tax less Other Income (PBT) - Quarterly
Highest at Rs 90.03 cr.
in the last five quartersMOJO Watch
Near term PBT trend is positive
PBT less Other Income (Rs Cr)
Cash and Cash Equivalents - Half Yearly
Highest at Rs 297.06 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 2.47 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 Nirlon
Profit After Tax (PAT) - Quarterly
At Rs 69.32 cr has Fallen at -12.8% (vs previous 4Q average)
over average PAT of the previous four quarters of Rs 79.48 CrMOJO Watch
Near term PAT trend is very negative
PAT (Rs Cr)
Debtors Turnover Ratio- Half Yearly
Lowest at 64.77 times
in the last five half yearly periodsMOJO Watch
Company's pace of settling its Debtors has slowed
Debtors Turnover Ratio
