Check Before You Invest : Nikhil Adhesives Ltd

Q: Which industry/sub-sector does Nikhil Adhesives Ltd belong to?

Nikhil Adhesives Ltd belongs to the Chemicals & Fertilizers sector, operating specifically within the Chemicals segment.

Q: Is Nikhil Adhesives Ltd a good quality company?

Nikhil Adhesives Ltd is a good quality company, based on a consistently good 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: Is Nikhil Adhesives Ltd undervalued or overvalued?

Nikhil Adhesives Ltd appears Fair, as its key valuation ratios are in line with 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. Price to Earnings, Current: 28.3, Historic Median: 29.38. Price to Book, Current: 2.94, Historic Median: 4.93. Price to Sales, Current: 0.77, Historic Median: 0.78. EV to EBITDA, Current: 12.54, Historic Median: 15.23

Q: Is Nikhil Adhesives Ltd a good buy now?

Nikhil Adhesives 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

Q: Revenue growth of Nikhil Adhesives Ltd?

Nikhil Adhesives Ltd revenue growth is 3.6% for FY-2025, which is below its 5-year CAGR of 6.75%, indicating slower growth.

Q: Gross Profit margin of Nikhil Adhesives Ltd?

Nikhil Adhesives Ltd Gross profit margin which is the profit after deduction of direct costs, is 5.1% for FY-2025, which is above its 5-year median of 4.7%, indicating increasing margins.

Q: Operating Profit Margin of Nikhil Adhesives Ltd?

Nikhil Adhesives Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 6.38% for FY-2025, which is above its 5-year median of 5.45% indicating increasing margins.

Q: Net Profit Margin of Nikhil Adhesives Ltd?

Nikhil Adhesives Ltd Net Profit Margin is 2.88% for FY-2025, is in line with its 5-year median of 2.88%, indicating stable margins. Profitability Metrics. Gross Profit Margin (%), Current: 5.1, Historic Median: 4.7. Operating Profit Margin (%), Current: 6.38, Historic Median: 5.45. Net Profit Margin (%), Current: 2.88, Historic Median: 2.88

Q: Return on Asset of Nikhil Adhesives Ltd?

Nikhil Adhesives Ltd Return on Asset is 5.45%, which is in line with its 5-year historical median of 5.58%, indicating stable asset utilization efficiency.

Q: Return on capital employed (ROCE) of Nikhil Adhesives Ltd?

Nikhil Adhesives Ltd Return on capital employed is 17.4% for FY-2025, which is below its 5-year historical median of 24.26%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Check Before You Invest : Nikhil Adhesives Ltd

BSE: 526159 NSE: ISIN: INE926C01022

| Sector: Chemicals & Fertilizers | Industry: Chemicals

Snapshot

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

Nikhil Adhesives Ltd belongs to the Chemicals & Fertilizers sector, operating specifically within the Chemicals segment.

Q.2 Is Nikhil Adhesives Ltd a good quality company?

Nikhil Adhesives Ltd is a good quality company, based on a consistently good 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 Nikhil Adhesives Ltd undervalued or overvalued?

Nikhil Adhesives Ltd appears Fair, as its key valuation ratios are in line with 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	28.3	29.38
Price to Book	2.94	4.93
Price to Sales	0.77	0.78
EV to EBITDA	12.54	15.23

Q.4 Is Nikhil Adhesives Ltd a good buy now?

Nikhil Adhesives 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.

A: What are the trends in revenue and profit margins?

Q.1 Revenue growth of Nikhil Adhesives Ltd?

Nikhil Adhesives Ltd revenue growth is 3.6% for FY-2025, which is below its 5-year CAGR of 6.75%, indicating slower growth.

Q.2 Gross Profit margin of Nikhil Adhesives Ltd?

Nikhil Adhesives Ltd Gross profit margin which is the profit after deduction of direct costs, is 5.1% for FY-2025, which is above its 5-year median of 4.7%, indicating increasing margins.

Q.3 Operating Profit Margin of Nikhil Adhesives Ltd?

Nikhil Adhesives Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 6.38% for FY-2025, which is above its 5-year median of 5.45% indicating increasing margins.

Q.4 Net Profit Margin of Nikhil Adhesives Ltd?

Nikhil Adhesives Ltd Net Profit Margin is 2.88% for FY-2025, is in line with its 5-year median of 2.88%, indicating stable margins.

	Current Level	5-year Historic Median
Gross Profit Margin (%)	5.1	4.7
Operating Profit Margin (%)	6.38	5.45
Net Profit Margin (%)	2.88	2.88

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Nikhil Adhesives Ltd?

Nikhil Adhesives Ltd Return on Asset is 5.45%, which is in line with its 5-year historical median of 5.58%, indicating stable asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Nikhil Adhesives Ltd?

Nikhil Adhesives Ltd Return on capital employed is 17.4% for FY-2025, which is below its 5-year historical median of 24.26%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q.7 Return on Equity (ROE) of Nikhil Adhesives Ltd?

Nikhil Adhesives Ltd Return on equity is 13.83% for FY-2025, which is below its 5-year historical median of 18.21%, indicating the business is making worse use of its shareholders capital.

Q.8 Cash conversion cycle of Nikhil Adhesives Ltd?

Nikhil Adhesives Ltd Cash conversion cycle is 57 days, above its 5-year historical median of 34 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover (x)	1.89	2.04
ROE (%)	13.83	18.21
ROCE (%)	17.4	24.26
Cash Conversion Cycle	57 days	34 days

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

Q.9 Debt to Equity ratio of Nikhil Adhesives Ltd?

Nikhil Adhesives Ltd Debt-to-Equity ratio is 0.43, which is above the industry average of 0.13, indicating higher debt levels in the industry.

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

Nikhil Adhesives Ltd Debt to cash flow from operations is 8.18, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Nikhil Adhesives Ltd?

Q.1 Promoter shareholding and pledge status of Nikhil Adhesives Ltd?

Promoters hold 54.46% of the Nikhil Adhesives Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Nikhil Adhesives Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Nikhil Adhesives Ltd vs industry peers?

Nikhil Adhesives Ltd revenue CAGR is 6.75%, compared to the industry median CAGR of 7.53%, indicating slower growth and losing its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth (%)	3.6	7.5
Gross Profit Growth (%)	20.8	12.1
Operating Profit Growth (%)	19.4	11.7
Net Profit Growth (%)	30.8	9.7

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover (x)	1.89	0.93
ROE (%)	13.83	10.17
ROCE (%)	17.4	12.96
Cash Conversion Cycle (days)	56.67	62

Valuation & price assessment

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

Over the last 9 year(s), the stock has delivered a CAGR of 35.9% based on the current price.

	9Y	5Y	3Y	1Y
Share Price CAGR	35.9%	14%	-12.8%	6.3%

Q.2 Valuation ratios of Nikhil Adhesives Ltd vs historical?

The current P/E ratio of 28.3 is in line with than its historical median of 29.38, indicating that the stock is trading near 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	28.3	29.38	28.17
Price to Book	2.94	4.93	2.22
Price to Sales	0.77	0.78	1.93
EV to EBITDA	12.54	15.23	14.20

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Check Before You Invest : Nikhil Adhesives Ltd

Snapshot

Performance Analysis

Ownership & governance

Peer comparison (industry-wise, mcap)

Profit Metrics

Operating Efficiency

Valuation & price assessment

Check more companies

Check trending companies

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