Check Before You Invest : Nitco Ltd

Snapshot

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

Nitco Ltd belongs to the Construction & Infrastructure sector, operating specifically within the Ceramics/Marble/Granite/Sanitaryware segment.

Q.2 Is Nitco Ltd a good quality company?

Nitco Ltd is a average quality company, based on a somewhat consistent 10-year financial track record.

Q.3 Is Nitco Ltd undervalued or overvalued?

Nitco Ltd appears Somewhat overvalued, as its key valuation ratios are above with their past averages.

Q.4 Is Nitco Ltd a good buy now?

Nitco Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Nitco Ltd?

Nitco Ltd revenue growth is -3.5% for FY-2025, which is above its 5-year CAGR of -7.42%, indicating faster growth.

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

Nitco Ltd Return on capital employed is -143.5% for FY-2025, which is below its 5-year historical median of -12.28%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.3 Return on Asset of Nitco Ltd?

Nitco Ltd Return on Asset is -99.4%, which is below its 5-year historical median of -18.57%, indicating deteriorated asset utilization efficiency.

Q.4 Cash conversion cycle of Nitco Ltd?

Nitco Ltd Cash conversion cycle is 282 days, above its 5-year historical median of 173 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.

Q.5 Gross Profit margin of Nitco Ltd?

Nitco Ltd Gross profit margin which is the profit after deduction of direct costs, is -28% for FY-2025, which is in line with its 5-year median of -27.9%, indicating stable margins.

Q.6 Operating Profit Margin of Nitco Ltd?

Nitco Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is -10.98% for FY-2025, which is in line with its 5-year median of -10.98% indicating stable margins.

Q.7 Net Profit Margin of Nitco Ltd?

Nitco Ltd Net Profit Margin is -236.14% for FY-2025, is below with its 5-year median of -39.63%, indicating decreasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin	-28	-27.9
Operating Profit Margin	-10.98	-10.98
Net Profit Margin	-236.14	-39.63

Q.8 Debt to Equity ratio of Nitco Ltd?

Nitco Ltd Debt-to-Equity ratio is 1.02, which is above with the industry average of 0.34, indicating higher debt levels in the industry.

Q.9 Debt to cash flow from operations of Nitco Ltd?

Nitco Ltd Debt to cash flow from operations is -1.52, which is at a unhealthy level.

Ownership & governance

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

Promoters hold 20.17% of the Nitco Ltd, with 67.13% of their stake pledged, indicating high pledge risk.

Peer comparison (industry-wise, mcap)

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

Nitco Ltd revenue CAGR is -7.42%, compared to the industry median CAGR of 2.84%, indicating slower growth and losing its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	-3.5	2.8
Gross Profit Growth	0	9
Operating Profit Growth	0	1.1
Net Profit Growth	0	NAN

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	0.42	0.57
ROE	-	2.84
ROCE	-143.5	5.52
Cash Conversion Cycle (days)	281.57	193

Valuation & price assessment

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

Over the last 9 year(s), the stock has delivered a CAGR of 7.6% based on the current price.

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

	9Y	5Y	3Y	1Y
Share Price CAGR	7.6%	35.8%	67.3%	-33%

Q.3 Valuation ratios of Nitco Ltd vs historical?

The current P/E is higher 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	54.8	48.14	24.02
Price to Book	5.11	-0.72	0.90
Price to Sales	4.43	0.57	1.29
EV to EBITDA	56.09	-33.36	10.79

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