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Check Before You Invest : Nila Spaces Ltd

BSE: 542231 NSE: NILASPACES ISIN: INE00S901012
  |   Sector:  Construction & Infrastructure   |   Industry:  Construction - Real Estate

Snapshot

Q.1 Which industry/sub-sector does Nila Spaces Ltd belong to?
Nila Spaces Ltd belongs to the Construction & Infrastructure sector, operating specifically within the Construction - Real Estate segment.
Q.2 Is Nila Spaces Ltd a good quality company?
Nila Spaces Ltd is a average quality company, based on a somewhat consistent 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 Nila Spaces Ltd undervalued or overvalued?
Nila Spaces 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 17.54 28.74
Price to Book 2.72 1.57
Price to Sales 2.87 3.90
EV to EBITDA 7.81 13.75
Q.4 Is Nila Spaces Ltd a good buy now?
Nila Spaces Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. 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 Nila Spaces Ltd?
Nila Spaces Ltd revenue growth is 49.7% for FY-2025, which is above its 5-year CAGR of 9.15%, indicating faster growth.

Q.2 Gross Profit margin of Nila Spaces Ltd?
Nila Spaces Ltd Gross profit margin which is the profit after deduction of direct costs, is 19.4% for FY-2025, which is above its 5-year median of 11.6%, indicating increasing margins.

Q.3 Operating Profit Margin of Nila Spaces Ltd?
Nila Spaces Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 24.6% for FY-2025, which is above its 5-year median of 4.31% indicating increasing margins.

Q.4 Net Profit Margin of Nila Spaces Ltd?
Nila Spaces Ltd Net Profit Margin is 11.2% for FY-2025, is above its 5-year median of 7.46%, indicating increasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 19.4 11.6
Operating Profit Margin (%) 24.6 4.31
Net Profit Margin (%) 11.2 7.46

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Nila Spaces Ltd?
Nila Spaces Ltd Return on Asset is 5.78%, which is above its 5-year historical median of 0.89%, indicating improved asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Nila Spaces Ltd?
Nila Spaces Ltd Return on capital employed is 26.74% for FY-2025, which is above its 5-year historical median of 5.54%. 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 Nila Spaces Ltd?
Nila Spaces Ltd Return on equity is 11.07% for FY-2025, which is above its 5-year historical median of 1.02%, indicating the business is making better use of its shareholders capital.

Q.8 Cash conversion cycle of Nila Spaces Ltd?
Nila Spaces Ltd Cash conversion cycle is 244 days, below its 5-year historical median of 442 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 (x) 0.52 0.3
ROE (%) 11.07 1.02
ROCE (%) 26.74 5.54
Cash Conversion Cycle 244 days 442 days

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

Q.9 Debt to Equity ratio of Nila Spaces Ltd?
Nila Spaces Ltd Debt-to-Equity ratio is 0.00, which is lower the industry average of 0.23, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Nila Spaces Ltd?
Nila Spaces Ltd Debt to cash flow from operations is 0, which is at a healthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Nila Spaces Ltd?

Q.1 Promoter shareholding and pledge status of Nila Spaces Ltd?
Promoters hold 61.90% of the Nila Spaces Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Nila Spaces Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Nila Spaces Ltd vs industry peers?
Nila Spaces Ltd revenue CAGR is 9.15%, compared to the industry median CAGR of 0%, indicating faster growth and gaining its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) 49.7 -
Gross Profit Growth (%) 136.4 20.5
Operating Profit Growth (%) 200 11.9
Net Profit Growth (%) 114.3 20.9
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 0.52 0.1
ROE (%) 11.07 1.36
ROCE (%) 26.74 3.88
Cash Conversion Cycle (days) 243.65 441

Valuation & price assessment

Q.1 Stock return of Nila Spaces Ltd over the last decade?
Over the last 5 year(s), the stock has delivered a CAGR of 37.52% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
- 37.5% 53.6% -13%
Q.2 Valuation ratios of Nila Spaces Ltd vs historical?
The current P/E ratio of 17.54 is lower than its historical median of 28.74, indicating that the stock is trading below 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 17.54 28.74 33.43
Price to Book 2.72 1.57 1.53
Price to Sales 2.87 3.90 5.23
EV to EBITDA 7.81 13.75 14.43

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