Nirlon Ltd - Stock Valuation and Financial Performance

BSE: 500307 | NSE: NIRLON | Engineering - Construction | Small Cap

Nirlon Share Price

426.50 -0.20 -0.05%
as on 28-Mar'24 16:01

DeciZen - make an informed investing decision on Nirlon

Overall Rating
Bole Toh

1. Quality

2. Valuation

Fair

3. Price Trend

Nirlon stock performance -

mw4me loader
P/E Ratio (SA):
18.83
Market Cap:
3,843.5 Cr.
52-wk low:
360
52-wk high:
475.1

Is Nirlon Ltd an attractive stock to invest in?

1. Is Nirlon Ltd a good quality company?

Past 10 year's financial track record analysis by Moneyworks4me indicates that Nirlon Ltd is a average quality company.

2. Is Nirlon Ltd undervalued or overvalued?

The key valuation ratios of Nirlon Ltd's currently when compared to its past seem to suggest it is in the Fair zone.

3. Is Nirlon Ltd a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Weak which suggest that the price of Nirlon Ltd is likely to Fall in the short term. However, please check the rating on Quality and Valuation before investing.

10 Year X-Ray of Nirlon:

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end.

Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Nirlon Ltd has performed well in some of the past ten years indicating its past ten year financial track record is somewhat good

Value Creation

Value Creation Index Colour Code Guide

Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23TTM
ROCE % 3.5%3.6%4.5%6.8%10.9%10.7%10.1%9.1%8.4%15.4%-
Value Creation
Index
-0.8-0.8-0.7-0.5-0.2-0.2-0.3-0.4-0.40.1-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 202239289288291299310317384573598
Sales YoY Gr.-18.6%20.9%-0.4%1.1%2.7%3.8%2.2%21.2%49.2%-
Adj EPS 3.23.155.66.37.112.314.112.317.522.7
YoY Gr.--2.8%62.6%10.9%12.5%12.7%73.6%14.5%-12.6%42.4%-
BVPS (₹) 2427.230.641.43339.150.463.75344.650.7
Adj Net
Profit
28.727.945.450.456.763.9111127111158204
Cash Flow from Ops. 175205205217212224311209340392-
Debt/CF from Ops. 3.83.53.22.82.93.83.24.73.52.9-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales 12.3%14.5%22.7%49.2%
Adj EPS 20.9%22.8%12.5%42.4%
BVPS7.1%6.2%-4%-15.9%
Share Price 20.9% 15.9% 15.7% 13.7%

Key Financial Parameters

Performance Ratio Colour Code Guide

Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23TTM
Return on
Equity %
1.71.83.25.516.919.727.524.721.135.947.5
Op. Profit
Mgn %
76.776.877.377.176.475.875.274.877.68079
Net Profit
Mgn %
14.311.715.717.519.521.435.840.128.927.634.1
Debt to
Equity
3.12.92.41.62.12.42.21.72.52.9-
Working Cap
Days
48839913918319720019619017817
Cash Conv.
Cycle
-36-40-32-32-30-41-45-46-65-65-48

Recent Performance Summary

Return on Equity has increased versus last 3 years average to 47.50%

Sales growth is growing at healthy rate in last 3 years 22.70%

Net Profit is growing at healthy rate in last 3 years 12.53%

Debt to equity has increased versus last 3 years average to 2.85

Sales growth is not so good in last 4 quarters at 6.50%

Latest Financials - Nirlon Ltd.

Standalone Consolidated
TTM EPS (₹) 22.7 -
TTM Sales (₹ Cr.) 598 -
BVPS (₹.) 50.7 -
Reserves (₹ Cr.) 367 -
P/BV 8.41 -
PE 18.83 -
From the Market
52 Week Low / High (₹) 360.00 / 475.05
All Time Low / High (₹) 1.00 / 475.05
Market Cap (₹ Cr.) 3,844
Equity (₹ Cr.) 90.1
Face Value (₹) 10
Industry PE 43.2

Management X-Ray of Nirlon:

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *2.112.032.030.340.310.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

Event Update

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Analyst's Notes

Adj EPS (Rs.)

Sales (Cr.)

ROE (%)

ROCE (%)

Profit And Loss

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Sales202239289288291299310317384573
Operating Expenses 475565667173798087115
Manufacturing Costs1112121255
Material Costs0000000000
Employee Cost 6686655555
Other Costs 394857586466737376104
Operating Profit 154184223222220226231237297458
Operating Profit Margin (%) 76.6%76.8%77.3%77.1%75.7%75.7%74.5%74.8%77.4%80.0%
Other Income 2215311233
Interest 787672786670321435126
Depreciation 496980717259534975103
Exceptional Items 47-30000000
Profit Before Tax 344869788599146177190233
Tax 2152627303537507975
Profit After Tax 323344515664109127111158
PAT Margin (%) 15.7%13.6%15.1%17.8%19.2%21.3%35.3%40.2%28.9%27.6%
Adjusted EPS (₹)3.53.64.85.76.27.112.214.112.317.5
Dividend Payout Ratio (%)21%21%16%13%12%11%6%57%211%148%

Balance Sheet

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23

Equity and Liabilities

Shareholders Fund 1,7451,4201,456373297352454574478402
Share Capital 90909090909090909090
Reserves 1,6551,3301,366283207262364484388312
Minority Interest0000000000
Debt6026475965296118539899781,0941,145
Long Term Debt5866155815146118539639781,0941,145
Short Term Debt173215150026000
Trade Payables10109788972617
Others Liabilities 216310310323257306427452737719
Total Liabilities 2,5732,3872,3711,2311,1731,5201,8782,0122,3352,283

Fixed Assets

Gross Block2,6452,5762,6081111111
Accumulated Depreciation2502773570000000
Net Fixed Assets2,3952,2992,2511110000
CWIP 131726551415599481,140136
Investments 0001,026835791741000
Inventories0000000000
Trade Receivables3344324233
Cash Equivalents 6941738513310023
Others Assets3868871281561621728672,2182,251
Total Assets 2,5732,3872,3711,2311,1731,5201,8782,0122,3352,283

Cash Flow

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Cash Flow From Operating Activity 175205205217212224311209340392
PBT 344869788599146177190233
Adjustment 1241441541481411359776124230
Changes in Working Capital 2925-2671796-1156-15
Tax Paid -11-12-15-15-21-27-28-32-30-55
Cash Flow From Investing Activity -142-162-75-63-118-405-325-120-159-90
Capex -142-163-76-64-119-405-326-121-161-85
Net Investments 0000000000
Others 111110112-6
Cash Flow From Financing Activity -39-39-136-140-7414822-100-86-381
Net Proceeds from Shares 80000000000
Net Proceeds from Borrowing 000-541724382152001,146
Interest Paid -94-84-75-78-68-87-104-83-79-114
Dividend Paid 0-8-8-8-7-7-7-7-207-234
Others -2553-530-16-150-250-1,178
Net Cash Flow -54-61420-338-1095-79
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Ratios
ROE (%)19.2414.1416.7415.7516.6319.6127.1624.7821.0635.9
ROCE (%)13.3213.4414.8916.2515.9715.9513.4912.751422.37
Asset Turnover Ratio0.080.10.120.160.240.220.180.160.180.25
PAT to CFO Conversion(x)5.476.214.664.253.793.52.851.653.062.48
Working Capital Days
Receivable Days5545434322
Inventory Days0000000000
Payable Days0000000000

Nirlon Ltd Stock News

Nirlon Ltd FAQs

Company share prices are keep on changing according to the market conditions. The closing price of Nirlon on 28-Mar-2024 16:01 is ₹426.5.
Market capitalization or market cap is determined by multiplying the current market price of a company's shares with the total number of shares outstanding. As of 28-Mar-2024 16:01 the market cap of Nirlon stood at ₹3,843.5.
The latest P/E ratio of Nirlon as of 28-Mar-2024 16:01 is 18.83.
The latest P/B ratio of Nirlon as of 28-Mar-2024 16:01 is 8.41.
The 52-week high of Nirlon is ₹475.1 and the 52-week low is ₹360.0.
The TTM revenue is Trailing Twelve Months sales. The TTM revenue/sales of Nirlon is ₹597.9 ( Cr.) .

About Nirlon Ltd

The company was incorporated on March 12, 1958 at Mumbai as a private limited company under the name of Nanubhai Industries. Nirlon is mainly engaged in manufacturing and marketing of tyre cord yarn, tyre cord fabric, industrial fabric, nylon chips, conveyor belts and fan and V-belts. The company also operates in real estate business. On March 13, 1963, Nirlon’s status was converted from private limited to a public limited company.

The company is engaged in manufacturing nylon (textile) filament yarn polyester filament yarn nylon tyre cord nylon tyre fabrics conveyor belts and fan and V-belts. The name of the company was changed to Nirlon Synthetics Fibres and Chemicals on 10th October 1962. The company's nylon textile yarn plant went into production in December 1982.

In 1988 the company had registered with Board for Financial and Industrial Reconstruction (BIFR). The rehabilitation scheme was sanctioned in the year of 1993. During the financial year 2005-06, Nirlon had substantially completed its implementation of rehabilitation scheme and BIFR vide it’s order dated 6th October, 2006 deregistered the company from the list of companies under Sick Industrial Companies (Special Provisions) Act 1985 (SICA). In view of this, the company is no longer a sick industrial unit under BIFR.

In the year 1999 Nirlon made its entry into the real estate business and offered its idle/surplus/factory premises at its Goregaon complex to leading corporates.

In the year 2000 the company formed a joint venture company for its Conveyor Belting Division having its manufacturing facility at Roha with a large, integrated, global player in belting production, further it retains 26% of JV Equity.

Other businesses of the company include:

INDUSTRIAL-FABRIC - Nirlon makes industrial fabrics, which can be used for applications such as belting, tarpaulins, grey textiles etc. Some of the deniers that are used for industrial fabric manufacturing are: 210, 420, 840, 1260, 1680 and 1890 Deniers. Belting fabric is presently being largely marketed by its C-Belt Joint Venture Company, Sempertrans Nirlon (P) where Nirlon owns 26% equity.

CONVEYOR-BELTS- Nirlon started manufacturing synthetic and cotton fabric reinforced rubber conveyor belts in 1978 at Roha. Like many other original initiatives, the introduction of synthetic fabric reinforced conveyor belt was the first of its kind in India. Sempertrans Nirlon makes conveyor belts of width ranging from 500mm to 1600mm

V–BELTS- The company manufactures a full range of wrap type, polyester reinforced V-Belts as per international standards. Its V-belts have carved out a niche in the industry through the years by their consistent quality, performance, availability, and service. Nirlon’s in-house R&D support has allowed upgrading belt quality and specifications to suit the requirements of changing times.

Milestones Achieved

  • 1962 – Nylon Textile production started. 
  • 1971 – Nylon Tyrecord production started. 
  • 1974 – Nylon Polyester production started. 
  • 1978 – Nirlon diversified into manufacture of Industrial Rubber Belting products,   i.e. Conveyor Belts & V-Belts at a new location in Roha, Dist. Raigad.
  • 1984 – Major expansion of the Nylon Tyrecord facility at a new location in Tarapur. 
  • 1985 – Company pays 22nd consecutive year of dividend. 
  • 1986 – Board for Financial and Industrial Rehabilitation. 
  • 1988 – Company registered with BIFR 
  • 1993 – Rehabilitation scheme sanctioned. 
  • 1995 – Exits from Polyester Filament Yarn business - man power reduction achieved through VRS. 
  •  1996 – State-of-the-art spin draw technology plant for tyrecord commissioned. 
  • 1999 – Nirlon’s entry into the real estate business – offers its idle/surplus/factory premises at its Goregaon complex to leading corporates.
  • 1999 – Modification to rehabilitation Scheme approved. 
  • 1999 – Nirlon exits from Nylon Textile Filament Yarn business.
  •  2000 – Forms a Joint Venture company for its Conveyor Belting Division having its manufacturing facility at Roha with a large, integrated, global player in belting production.  â€“ Retains 26% of JV equity.
  • 2000 – Acquires ISO9002 accreditation by Dutch Council for Certification   for Nylon Tyrecord division.
  • 2000 – Man-power rationalization for Tyrecord facility. 
  • 2003 – Factory Building areas of 350,000 sq.ft. licensed at Goregaon complex. 
  •  2003 – Completes repayment of Secured loans & Public Debentures as per   the BIFR Rehabilitation Scheme.
  • 2004 – Phase out of Tyrecord manufacturing at Goregaon. 
  • 2005 – Additional building area of 150,000 sq.ft. licensed at Goregaon. Further amendments to Rehabilitation Scheme approved.
  • FY 2005-06 – Company achieves profit after depreciation and substantially completes   implementation of Rehabilitation Scheme.
  • 2006-07 – BIFR vide it’s order dated 6th October, 2006 deregistered the Company from the  list of companies under Sick Industrial Companies (Special Provisions) Act 1985 (SICA).  In view of this, the company is no longer a sick industrial unit under BIFR, or, as per the Sick Industrial Companies (Special Provisions) Act 1985.
  •  2007–08 – Development of IT Park at Goregaon commences.
  • 2010 -   Nirlon Ltd won Smart Living Awards for
    i.   Best Safest Project.
    ii.  Best Corporate Spaces - SEZ's & IT Parks.
    iii. Best Green Project - Commercial.
  • 2012 -   Nirlon Ltd won International Property Awards Asia Pacific for
    i.  Best Commercial Renovation / Redevelopment, India
    ii. Best Commercial Renovation / Redevelopment, Asia Pacific
  • 2013 -  Nirlon Ltd won Worldwide Achievers ‘Real Estate Award 2013
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