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Check Before You Invest : Niraj Cement Structurals Ltd

BSE: 532986 NSE: NIRAJ ISIN: INE368I01016
  |   Sector:  Construction & Infrastructure   |   Industry:  Engineering - Construction

Snapshot

Q.1 Which industry/sub-sector does Niraj Cement Structurals Ltd belong to?
Niraj Cement Structurals Ltd belongs to the Construction & Infrastructure sector, operating specifically within the Engineering - Construction segment.
Q.2 Is Niraj Cement Structurals Ltd a good quality company?
Niraj Cement Structurals 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 Niraj Cement Structurals Ltd undervalued or overvalued?
Niraj Cement Structurals 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 8.46 34.56
Price to Book 0.79 0.87
Price to Sales 0.36 0.38
EV to EBITDA 5.28 10.49
Q.4 Is Niraj Cement Structurals Ltd a good buy now?
Niraj Cement Structurals 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

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 Niraj Cement Structurals Ltd?
Niraj Cement Structurals Ltd revenue growth is 7.8% for FY-2025, which is below its 5-year CAGR of 32.6%, indicating slower growth.

Q.2 Gross Profit margin of Niraj Cement Structurals Ltd?
Niraj Cement Structurals Ltd Gross profit margin which is the profit after deduction of direct costs, is 4.5% for FY-2025, which is above its 5-year median of 2.6%, indicating increasing margins.

Q.3 Operating Profit Margin of Niraj Cement Structurals Ltd?
Niraj Cement Structurals Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 3.22% for FY-2025, which is above its 5-year median of 1.46% indicating increasing margins.

Q.4 Net Profit Margin of Niraj Cement Structurals Ltd?
Niraj Cement Structurals Ltd Net Profit Margin is 3% for FY-2025, is above its 5-year median of 0.76%, indicating increasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 4.5 2.6
Operating Profit Margin (%) 3.22 1.46
Net Profit Margin (%) 3 0.76

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Niraj Cement Structurals Ltd?
Niraj Cement Structurals Ltd Return on Asset is 4.77%, which is above its 5-year historical median of 1.28%, indicating improved asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Niraj Cement Structurals Ltd?
Niraj Cement Structurals Ltd Return on capital employed is 10.22% for FY-2025, which is above its 5-year historical median of 3.49%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.7 Return on Equity (ROE) of Niraj Cement Structurals Ltd?
Niraj Cement Structurals Ltd Return on equity is 7.68% for FY-2025, which is above its 5-year historical median of 2.28%, indicating the business is making better use of its shareholders capital.

Q.8 Cash conversion cycle of Niraj Cement Structurals Ltd?
Niraj Cement Structurals Ltd Cash conversion cycle is 29 days, below its 5-year historical median of 42 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) 1.59 1.59
ROE (%) 7.68 2.28
ROCE (%) 10.22 3.49
Cash Conversion Cycle 29 days 42 days

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

Q.9 Debt to Equity ratio of Niraj Cement Structurals Ltd?
Niraj Cement Structurals Ltd Debt-to-Equity ratio is 0.00, which is lower the industry average of 0.38, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Niraj Cement Structurals Ltd?
Niraj Cement Structurals Ltd Debt to cash flow from operations is -0.01, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Niraj Cement Structurals Ltd?

Q.1 Promoter shareholding and pledge status of Niraj Cement Structurals Ltd?
Promoters hold 24.89% of the Niraj Cement Structurals Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Niraj Cement Structurals Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Niraj Cement Structurals Ltd vs industry peers?
Niraj Cement Structurals Ltd revenue CAGR is 32.60%, compared to the industry median CAGR of 0.00%, indicating faster growth and gaining its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) 7.8 0
Gross Profit Growth (%) -4.2 16.3
Operating Profit Growth (%) - 13.9
Net Profit Growth (%) 50 20.1
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 1.59 0.62
ROE (%) 7.68 6.32
ROCE (%) 10.22 10.58
Cash Conversion Cycle (days) 29.1 51

Valuation & price assessment

Q.1 Stock return of Niraj Cement Structurals Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 7.4% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
7.4% -3.9% 4% -37.3%
Q.2 Valuation ratios of Niraj Cement Structurals Ltd vs historical?
The current P/E ratio of 8.46 is lower than its historical median of 34.56, 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 8.46 34.56 21.52
Price to Book 0.79 0.87 1.74
Price to Sales 0.36 0.38 1.51
EV to EBITDA 5.28 10.49 11.49

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