Nikhil Adhesives Ltd - Stock Valuation and Financial Performance

BSE: 526159 | NSE: | Chemicals | Small Cap

Nikhil Adhesives Share Price

124.10 -1.15 -0.92%
as on 28-Mar'24 16:01

DeciZen - make an informed investing decision on Nikhil Adhesives

Overall Rating
Bole Toh

1. Quality

2. Valuation

Somewhat overvalued

3. Price Trend

Nikhil Adhesives stock performance -

mw4me loader
P/E Ratio (SA):
43.87
Market Cap:
575.4 Cr.
52-wk low:
91.6
52-wk high:
150

Is Nikhil Adhesives Ltd an attractive stock to invest in?

1. Is Nikhil Adhesives Ltd a good quality company?

Past 10 year's financial track record analysis by Moneyworks4me indicates that Nikhil Adhesives Ltd is a good quality company.

2. Is Nikhil Adhesives Ltd undervalued or overvalued?

The key valuation ratios of Nikhil Adhesives Ltd's currently when compared to its past seem to suggest it is in the Somewhat overvalued zone.

3. Is Nikhil Adhesives Ltd a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Weak which suggest that the price of Nikhil Adhesives Ltd is likely to Fall in the short term. However, please check the rating on Quality and Valuation before investing.

10 Year X-Ray of Nikhil Adhesives:

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end.

Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Nikhil Adhesives Ltd has performed well in majority of the past ten years indicating its past ten year financial track record is very good

Value Creation

Value Creation Index Colour Code Guide

Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23TTM
ROCE % 14.6%10.9%17%12.1%12.6%15.4%18.7%24.3%29.3%19.5%-
Value Creation
Index
0.1-0.20.2-0.1-0.10.10.30.71.10.4-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 234254270260330446422491814743577
Sales YoY Gr.-8.6%6.3%-4%27.2%35.2%-5.5%16.4%65.7%-8.6%-
Adj EPS 0.90.40.70.50.81.11.93.45.54.32.9
YoY Gr.--60.7%108.6%-27.4%45.3%48.1%67.5%78.5%61.3%-22.4%-
BVPS (₹) 3.63.74.14.67.68.69.913.318.622.124
Adj Net
Profit
3.51.42.92.13.65.28.815.725.319.613
Cash Flow from Ops. -2.115.712.8-4.211.116.420.922.924.720.6-
Debt/CF from Ops. -21.62.32.7-10.82.92.11.61.21.11.5-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales 13.7%17.6%20.8%-8.6%
Adj EPS 19%40.9%30.8%-22.4%
BVPS22.4%23.8%30.6%19%
Share Price 49.1% 57.9% 48% 28.1%

Key Financial Parameters

Performance Ratio Colour Code Guide

Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23TTM
Return on
Equity %
25.29.718.912.113.41420.629.434.52112.4
Op. Profit
Mgn %
5.43.74.84.33.93.75.16.35.35.25.3
Net Profit
Mgn %
1.50.51.10.81.11.22.13.23.12.62.3
Debt to
Equity
3.22.52.22.60.90.90.70.50.30.3-
Working Cap
Days
10310810512012111012313910711261
Cash Conv.
Cycle
11115827263234252915

Recent Performance Summary

Sales growth is growing at healthy rate in last 3 years 20.80%

Net Profit is growing at healthy rate in last 3 years 30.76%

Return on Equity has declined versus last 3 years average to 12.40%

Sales growth is not so good in last 4 quarters at -27.32%

Latest Financials - Nikhil Adhesives Ltd.

Standalone Consolidated
TTM EPS (₹) 2.9 0.1
TTM Sales (₹ Cr.) 577 234
BVPS (₹.) 24 0
Reserves (₹ Cr.) 106 10
P/BV 5.22 0.00
PE 43.87 0.00
From the Market
52 Week Low / High (₹) 91.55 / 150.00
All Time Low / High (₹) 0.10 / 225.30
Market Cap (₹ Cr.) 575
Equity (₹ Cr.) 4.6
Face Value (₹) 1
Industry PE 47

Management X-Ray of Nikhil Adhesives:

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *22.9122.9122.9122.9122.9122.9122.9122.9122.9122.91
* Pledged shares as % of Promoter's holding (%)

Event Update

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Analyst's Notes

Key Ratios of Nikhil Adhesives

Adj EPS (Rs.)

Sales (Cr.)

ROE (%)

ROCE (%)

Profit And Loss

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Sales234254270260330446422491814743
Operating Expenses 222246259248317430403460770709
Manufacturing Costs14211818202730336063
Material Costs193210220213274375337395674595
Employee Cost 566681012121419
Other Costs 991511151824212332
Operating Profit 1381111131719314335
Operating Profit Margin (%) 5.4%3.2%4.1%4.3%3.9%3.7%4.5%6.3%5.3%4.7%
Other Income 1100111010
Interest 6687788766
Depreciation 2221223345
Exceptional Items -5000-100000
Profit Before Tax 0123479213424
Tax 0001122697
Profit After Tax 0022357162517
PAT Margin (%) 0.1%0.1%0.6%0.8%0.9%1.2%1.7%3.2%3.1%2.3%
Adjusted EPS (₹)0.10.10.40.50.61.11.53.45.53.7
Dividend Payout Ratio (%)0%0%0%0%16%9%7%4%4%5%

Balance Sheet

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23

Equity and Liabilities

Shareholders Fund 141416183540466185102
Share Capital 4444555555
Reserves 10101214303541568197
Minority Interest0000000000
Debt39333243302927212121
Long Term Debt17171626141516201816
Short Term Debt23151617161411235
Trade Payables53546058809887160160121
Others Liabilities 10111112122032484952
Total Liabilities 116112119130157186191291316295

Fixed Assets

Gross Block383940404858688294112
Accumulated Depreciation12141617192124273035
Net Fixed Assets25252423303744546476
CWIP 1101006014
Investments 0000000000
Inventories25252621344037727684
Trade Receivables48424464789795151145110
Cash Equivalents 4465331365
Others Assets141518161198102416
Total Assets 116112119130157186191291316295

Cash Flow

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Cash Flow From Operating Activity -21613-4111621232521
PBT 0123479213424
Adjustment 78991081511915
Changes in Working Capital -972-15-22-0-6-8-12
Tax Paid 000-1-1-1-2-3-11-6
Cash Flow From Investing Activity -30-2-1-6-10-12-7-15-19
Capex -3-2-1-2-7-10-14-7-15-19
Net Investments 0002011000
Others 01-10000000
Cash Flow From Financing Activity 5-15-94-5-7-9-15-6-3
Net Proceeds from Shares 00001400000
Net Proceeds from Borrowing 8-2-110-12104-2-2
Interest Paid -5-6-8-6-6-8-8-7-6-6
Dividend Paid 00000-100-1-1
Others 3-701-11-1-1126
Net Cash Flow 001000-113-1
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Ratios
ROE (%)1.922.6910.5212.1110.8213.9916.4929.3934.5318.21
ROCE (%)12.112.8719.817.5616.9121.9822.2533.2539.7424.26
Asset Turnover Ratio2.512.492.582.322.372.62.242.042.682.43
PAT to CFO Conversion(x)-INFINF6.5-23.673.231.4411.24
Working Capital Days
Receivable Days56585369777183916663
Inventory Days31323130303033403339
Payable Days86929410191861001148786

Nikhil Adhesives Ltd Stock News

Nikhil Adhesives Ltd FAQs

Company share prices are keep on changing according to the market conditions. The closing price of Nikhil Adhesives on 28-Mar-2024 16:01 is ₹124.1.
Market capitalization or market cap is determined by multiplying the current market price of a company's shares with the total number of shares outstanding. As of 28-Mar-2024 16:01 the market cap of Nikhil Adhesives stood at ₹575.4.
The latest P/E ratio of Nikhil Adhesives as of 28-Mar-2024 16:01 is 43.87.
The latest P/B ratio of Nikhil Adhesives as of 28-Mar-2024 16:01 is 5.22.
The 52-week high of Nikhil Adhesives is ₹150.0 and the 52-week low is ₹91.55.
The TTM revenue is Trailing Twelve Months sales. The TTM revenue/sales of Nikhil Adhesives is ₹576.9 ( Cr.) .

About Nikhil Adhesives Ltd

Nikhil Adhesives (NAL) founded in 1986 as Hans marketing & Services Pvt. Ltd., is a leading manufacturing and marketing company in India .The company markets various chemicals such as VAM, BAM, 2EHA, EA etc. representing, MITCO (Petronas) Malaysia & Other Multinational Companies all over the world. Nikhil Adhesives has about 300 industrial customers, 500 dealers and distributors and about 3000 retail outlets all over india.

The company tries to deliver value products and services by employing state of the art technology and absolute focus to their customers. The synergy of commitment, technology and prompt deliverables is what makes Nikhil Adhesives the right choices.

The company is having two manufacturing facilities, one in Dahanu with capacity of -12000 MT and the other in Silvasa with Capacity of 12000 MT.

The state of the art laboratory equipped with modern testing equipments is constantly upgrading the information base and working always towards product perfection. Our laboratory activities are focused on the development of new grades as well as improvement of existing products. The laboratory is managed by qualified and experienced persons from the field of emulsion technology. Regular interactions of R&D and technical services persons are arranged with customers to understand their requirements in totality. This helps company to do value addition to the product range manufactured by the company.

Product Range of the company includes: Industrial Chemicals

  • Paint Emulsions
  • Textile
  • Emulsions
  • Construction
  • Chemicals
  • Adhesives

Consumer Chemicals

  • Consumer Products
  • Household Products
  • Art & Crafts

Trading

  • Monomers
  • Ethoxylates  
  • Solvents

Milestones

  • 1986 – Nikhil adhesive Ltd. Was founded as Hans marketing & Services Pvt. Ltd. (HM&S Pvt. Ltd.).
  • 1992 – HM&S Pvt. Ltd. Merged with M/s Nikhil Industries under the name Nikhil Adhesives.
  • 1992 – Nikhil Adhesives became Public limited company (traded on the Bombay Stock Exchange).
  •  2003 – Nikhil Adhesives Ltd. Acquired M/s Mafatlal Dyes & Chemicals Ltd. formerly known as Hoechst Dyes & Chemicals Ltd. the pioneers of adhesives business in India, along with their Brands, Hoechst German Technology and Machineries.
  • 2007 – Nikhil Adhesives Ltd. expanded their manufacturing activity and setup a new additional unit at Silvassa equiped with modern machineries and facilities to produce and cater to the requirement of various industries.
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