Check Before You Invest : Nile Ltd

Snapshot

Q.1 Which industry/sub-sector does Nile Ltd belong to?

Nile Ltd belongs to the Metals & Mining sector, operating specifically within the Metal - Non Ferrous segment.

Q.2 Is Nile Ltd a good quality company?

Nile Ltd is a good quality company, based on a consistently good 10-year financial track record.

Q.3 Is Nile Ltd undervalued or overvalued?

Nile Ltd appears Overvalued, as its key valuation ratios are above with their past averages.

Q.4 Is Nile Ltd a good buy now?

Nile Ltd is not a good buy now, based on weak price trend analysis suggesting prices may fall. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Nile Ltd?

Nile Ltd revenue growth is 9.8% for FY-2025, which is above its 5-year CAGR of 9.18%, indicating faster growth.

Q.2 Return on capital employed (ROCE) of Nile Ltd?

Nile Ltd Return on capital employed is 21.86% for FY-2025, which is above its 5-year historical median of 16.91%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q.3 Return on Asset of Nile Ltd?

Nile Ltd Return on Asset is 15.31%, which is above its 5-year historical median of 10.57%, indicating improved asset utilization efficiency.

Q.4 Return on Equity (ROE) of Nile Ltd?

Nile Ltd Return on equity is 16.33% for FY-2025, which is above its 5-year historical median of 14.54%, indicating the business is making better use of its shareholders capital.

Q.5 Cash conversion cycle of Nile Ltd?

Nile Ltd Cash conversion cycle is 70 days, below its 5-year historical median of 75 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover	3.45	3.45
ROE	16.33	14.54
ROCE	21.86	16.91
Cash Conversion Cycle	70 days	75 days

Q.6 Gross Profit margin of Nile Ltd?

Nile Ltd Gross profit margin which is the profit after deduction of direct costs, is 6.3% for FY-2025, which is above its 5-year median of 5.1%, indicating increasing margins.

Q.7 Operating Profit Margin of Nile Ltd?

Nile Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 6.32% for FY-2025, which is above its 5-year median of 5.52% indicating increasing margins.

Q.8 Net Profit Margin of Nile Ltd?

Nile Ltd Net Profit Margin is 4.44% for FY-2025, is above with its 5-year median of 3.43%, indicating increasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin	6.3	5.1
Operating Profit Margin	6.32	5.52
Net Profit Margin	4.44	3.43

Q.9 Debt to Equity ratio of Nile Ltd?

Nile Ltd Debt-to-Equity ratio is 0.03, which is lower with the industry average of 0.25, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Nile Ltd?

Nile Ltd Debt to cash flow from operations is 2.44, which is at a moderate level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Nile Ltd?

Promoters hold 50.39% of the Nile Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Nile Ltd vs industry peers?

Nile Ltd revenue CAGR is 9.18%, compared to the industry median CAGR of 16.84%, indicating slower growth and losing its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	9.8	16.8
Gross Profit Growth	28.9	24.7
Operating Profit Growth	26.1	19.2
Net Profit Growth	28.1	15

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	3.45	2.44
ROE	16.33	5.47
ROCE	21.86	8.46
Cash Conversion Cycle (days)	70.08	56

Valuation & price assessment

Q.1 Stock return of Nile Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of 26.2% based on the current price.

Q.2 What return has the stock given over the last decade?

	9Y	5Y	3Y	1Y
Share Price CAGR	26.2%	37.4%	43.5%	22%

Q.3 Valuation ratios of Nile Ltd vs historical?

The current P/E is lower that its historical median.

Q.4 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	9.1	9.60	26.99
Price to Book	1.63	1.23	2.29
Price to Sales	0.52	0.31	0.62
EV to EBITDA	6.35	6.98	12.14

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