MoneyWorks4Me

Check Before You Invest : Nidhi Granites Ltd

BSE: 512103 NSE: ISIN: INE276H01013
  |   Sector:  BFSI   |   Industry:  Finance - Others

Snapshot

Q.1 Which industry/sub-sector does Nidhi Granites Ltd belong to?
Nidhi Granites Ltd belongs to the BFSI sector, operating specifically within the Finance - Others segment.
Q.2 Is Nidhi Granites Ltd a good quality company?
Nidhi Granites Ltd is a weak quality company, based on a inconsistent multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is Nidhi Granites Ltd undervalued or overvalued?
Nidhi Granites Ltd appears Somewhat overvalued, as its key valuation ratios are higher than their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios Current 5-year
Historic Median
Price to Earnings 24.19 -
Price to Book 7.92 5.47
Price to Sales 3.29 236.85
EV to EBITDA 14.37 66.46
Q.4 Is Nidhi Granites Ltd a good buy now?
Nidhi Granites 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

We have analysed the performance of the company on the following:

  • How has it performed on generating Profits?

    By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.

  • How efficiently has it utilized Capital?

    By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.

  • How is it managing its Debt?

    By checking its Debt to Equity and Cash Flow from Operations.

Q.1 Gross Profit margin of Nidhi Granites Ltd?
Nidhi Granites Ltd Gross profit margin which is the profit after deduction of direct costs, is 18.9% for FY-2026, which is above its 5-year median of 4.9%, indicating increasing margins.

Q.2 Operating Profit Margin of Nidhi Granites Ltd?
Nidhi Granites Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 21.36% for FY-2026, which is above its 5-year median of 4.06% indicating increasing margins.

Q.3 Net Profit Margin of Nidhi Granites Ltd?
Nidhi Granites Ltd Net Profit Margin is 11.77% for FY-2026, is above its 5-year median of 1.93%, indicating increasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 18.9 4.9
Operating Profit Margin (%) 21.36 4.06
Net Profit Margin (%) 11.77 1.93

B: Does the business utilize capital efficiently?

Q.4 Return on Asset of Nidhi Granites Ltd?
Nidhi Granites Ltd Return on Asset is 27.9%, which is above its 5-year historical median of 5.9%, indicating improved asset utilization efficiency.

Q.5 Return on capital employed (ROCE) of Nidhi Granites Ltd?
Nidhi Granites Ltd Return on capital employed is 52.7% for FY-2026, which is above its 5-year historical median of 16%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q.6 Return on Equity (ROE) of Nidhi Granites Ltd?
Nidhi Granites Ltd Return on equity is 41% for FY-2026, which is above its 5-year historical median of 13.4%, indicating the business is making better use of its shareholders capital.

Q.7 Cash conversion cycle of Nidhi Granites Ltd?
Nidhi Granites Ltd Cash conversion cycle is 45 days, in line with its 5-year historical median of 45 days, indicating stable working capital management. However, you need to compare this with its peers in the industry.
Current Level 5-year
Historic Median
Asset Turnover (x) 2.37 2.05
ROE (%) 41 13.4
ROCE (%) 52.7 16
Cash Conversion Cycle 45 days 45 days

C: How much debt does the business have and is it at a sustainable level?

Q.8 Debt to Equity ratio of Nidhi Granites Ltd?
Nidhi Granites Ltd Debt-to-Equity ratio is 0.07, which is above the industry average of 0.00, indicating higher debt levels in the industry.

Q.9 Debt to cash flow from operations of Nidhi Granites Ltd?
Nidhi Granites Ltd Debt to cash flow from operations is 0.27, which is at a healthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Nidhi Granites Ltd?

Q.1 Promoter shareholding and pledge status of Nidhi Granites Ltd?
Promoters hold 66.75% of the Nidhi Granites Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Nidhi Granites Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Nidhi Granites Ltd vs industry peers?
Nidhi Granites Ltd revenue CAGR is 0.00%, compared to the industry median CAGR of 0.00%, indicating stable growth and maintaining its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) - 0
Gross Profit Growth (%) 300 41.7
Operating Profit Growth (%) 1,100 37.4
Net Profit Growth (%) 300 39.8
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 2.37 0.5
ROE (%) 41 7.1
ROCE (%) 52.7 11
Cash Conversion Cycle (days) 44.99 5

Valuation & price assessment

Q.1 Stock return of Nidhi Granites Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 30% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
30% 43.4% 97.9% -30.3%
Q.2 Valuation ratios of Nidhi Granites Ltd vs historical?
The current P/E ratio of 24.19 is higher than its historical median of , indicating that the stock is trading above its historical average valuation.
Q.3 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 24.19 - 40.56
Price to Book 7.92 5.47 4.06
Price to Sales 3.29 236.85 9.32
EV to EBITDA 14.37 66.46 25.78

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