Nirlon Ltd Stock Analysis

BSE: 500307 | NSE: NIRLON | Engineering - Construction | Small Cap

BSE Share Price 27-Jan-2023 18:01
362.70 2.60 (0.72%)

DeciZen - Make an Informed Decision on Nirlon

Overall Rating

1. Quality

2. Valuation

Fair

3. Price Trend

Nirlon Price Chart

P/E Ratio ( SA) :
31.08
Market Cap :
3,268.6 Cr.
52-wk low :
301.1
52-wk high :
420.1
Bole Toh?

1. Is Nirlon Ltd a good quality company?

Past 10 year’s financial track record analysis by Moneyworks4me indicates that Nirlon Ltd is a below average quality company.

2. Is Nirlon Ltd undervalued or overvalued?

The key valuation ratios of Nirlon Ltd's currently when compared to its past seem to suggest it is in the Fair zone.

3. Is Nirlon Ltd a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Weak which suggest that the price of Nirlon 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 Nirlon:

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.
Nirlon Ltd has not performed well majority of the past ten years indicating its past ten year financial track record is not good

Value Creation

Value Creation Index Colour Code Guide

Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22TTM
ROCE % 2.2%3.5%3.6%4.5%6.8%10.9%10.7%10.1%9.1%8.4%-
Value Creation Index -0.9-0.8-0.8-0.7-0.5-0.2-0.2-0.3-0.4-0.4-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 160202239289288291299310317384510
YoY Gr. Rt. %-26.2%18.6%20.9%-0.4%1.1%2.7%3.8%2.2%21.2%-
Adj EPS 0.53.23.155.66.37.112.314.112.311.7
YoY Gr. Rt. %-513.5%-2.8%62.6%10.9%12.5%12.7%73.6%14.5%-12.6%-
BVPS (₹) 15.72427.230.641.43339.150.463.75348.1
Adj Net Profit 3.828.727.945.450.456.763.9111127111105
Cash Flow from Ops. 140175205205217212224311209340-
Debt/CF from Ops. 4.93.83.53.22.82.93.83.24.73.5-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales 10.2%5.9%8.7%21.2%
Adj EPS 42.2%17.1%20.2%-12.6%
BVPS 14.55.110.7-16.8
Share Price 23.8% 11.3% 7.6% -3.5%

Key Financial Parameters

Performance Ratio Colour Code Guide

Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22TTM
Return on Equity % 0.21.71.83.25.516.919.727.524.721.123.1
Op. Profit Mgn % 73.376.776.877.377.176.475.875.274.877.680.4
Net Profit Mgn % 2.414.311.715.717.519.521.435.840.128.920.6
Debt to Equity 6.13.12.92.41.62.12.42.21.72.52.6
Working Cap Days 3048839913918319720019619034
Cash Conv. Cycle -25-36-40-32-32-30-41-45-48-690

Recent Performance Summary

Net Profit is growing at healthy rate in last 3 years 20.22%

Sales growth is good in last 4 quarters at 64.32%

Return on Equity has declined versus last 3 years average to 23.10%

Sales growth has been subdued in last 3 years 8.73%

Debt to equity has increased versus last 3 years average to 2.47

Latest Financials - Nirlon Ltd.

Standalone Consolidated
TTM EPS (₹) 11.7 -
TTM Sales (₹ Cr.) 510 -
BVPS (₹.) 48.1 -
Reserves (₹ Cr.) 343 -
P/BV 7.54 -
PE 31.08 -
From the Market
52 Week Low / High (₹) 301.10 / 420.10
All Time Low / High (₹) 1.00 / 444.90
Market Cap (₹ Cr.) 3,269
Equity (₹ Cr.) 90.1
Face Value (₹) 10
Industry PE 28.1

Management X-Ray of Nirlon :

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *2.232.232.112.112.112.032.030.340.310.00
* Pledged shares as % of Promoter's holding (%)

Event Update

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Analyst's Notes

Key Ratios of Nirlon

Adj EPS (Rs.)
Sales (Cr.)
ROE (%)
ROCE (%)

News

Nirlon Ltd FAQs

Company share prices are keep on changing according to the market conditions. The closing price of Nirlon on 27-Jan-2023 18:01 is : 362.7.
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 27-Jan-2023 18:01 the market cap of Nirlon stood at ₹ 3,268.6.
The latest PE ratio of Nirlon as of 27-Jan-2023 18:01 is 31.08.
The latest PB ratio of Nirlon as of 27-Jan-2023 18:01 is 7.54
The 52-week high of Nirlon is ₹ 420.1 and the 52-week low is ₹ 301.1.
The TTM revenue is Trailing Twelve Months sales. The TTM revenue / sales of Nirlon is ₹ 510.3 ( Cr.) .

About Nirlon Ltd

The company was incorporated on March 12, 1958 at Mumbai as a private limited company under the name of Nanubhai Industries. Nirlon is mainly engaged in manufacturing and marketing of tyre cord yarn, tyre cord fabric, industrial fabric, nylon chips, conveyor belts and fan and V-belts. The company also operates in real estate business. On March 13, 1963, Nirlon’s status was converted from private limited to a public limited company.

The company is engaged in manufacturing nylon (textile) filament yarn polyester filament yarn nylon tyre cord nylon tyre fabrics conveyor belts and fan and V-belts. The name of the company was changed to Nirlon Synthetics Fibres and Chemicals on 10th October 1962. The company's nylon textile yarn plant went into production in December 1982.

In 1988 the company had registered with Board for Financial and Industrial Reconstruction (BIFR). The rehabilitation scheme was sanctioned in the year of 1993. During the financial year 2005-06, Nirlon had substantially completed its implementation of rehabilitation scheme and BIFR vide it’s order dated 6th October, 2006 deregistered the company from the list of companies under Sick Industrial Companies (Special Provisions) Act 1985 (SICA). In view of this, the company is no longer a sick industrial unit under BIFR.

In the year 1999 Nirlon made its entry into the real estate business and offered its idle/surplus/factory premises at its Goregaon complex to leading corporates.

In the year 2000 the company formed a joint venture company for its Conveyor Belting Division having its manufacturing facility at Roha with a large, integrated, global player in belting production, further it retains 26% of JV Equity.

Other businesses of the company include:

INDUSTRIAL-FABRIC - Nirlon makes industrial fabrics, which can be used for applications such as belting, tarpaulins, grey textiles etc. Some of the deniers that are used for industrial fabric manufacturing are: 210, 420, 840, 1260, 1680 and 1890 Deniers. Belting fabric is presently being largely marketed by its C-Belt Joint Venture Company, Sempertrans Nirlon (P) where Nirlon owns 26% equity.

CONVEYOR-BELTS- Nirlon started manufacturing synthetic and cotton fabric reinforced rubber conveyor belts in 1978 at Roha. Like many other original initiatives, the introduction of synthetic fabric reinforced conveyor belt was the first of its kind in India. Sempertrans Nirlon makes conveyor belts of width ranging from 500mm to 1600mm

V–BELTS- The company manufactures a full range of wrap type, polyester reinforced V-Belts as per international standards. Its V-belts have carved out a niche in the industry through the years by their consistent quality, performance, availability, and service. Nirlon’s in-house R&D support has allowed upgrading belt quality and specifications to suit the requirements of changing times.

Milestones Achieved

  • 1962 – Nylon Textile production started. 
  • 1971 – Nylon Tyrecord production started. 
  • 1974 – Nylon Polyester production started. 
  • 1978 – Nirlon diversified into manufacture of Industrial Rubber Belting products,   i.e. Conveyor Belts & V-Belts at a new location in Roha, Dist. Raigad.
  • 1984 – Major expansion of the Nylon Tyrecord facility at a new location in Tarapur. 
  • 1985 – Company pays 22nd consecutive year of dividend. 
  • 1986 – Board for Financial and Industrial Rehabilitation. 
  • 1988 – Company registered with BIFR 
  • 1993 – Rehabilitation scheme sanctioned. 
  • 1995 – Exits from Polyester Filament Yarn business - man power reduction achieved through VRS. 
  •  1996 – State-of-the-art spin draw technology plant for tyrecord commissioned. 
  • 1999 – Nirlon’s entry into the real estate business – offers its idle/surplus/factory premises at its Goregaon complex to leading corporates.
  • 1999 – Modification to rehabilitation Scheme approved. 
  • 1999 – Nirlon exits from Nylon Textile Filament Yarn business.
  •  2000 – Forms a Joint Venture company for its Conveyor Belting Division having its manufacturing facility at Roha with a large, integrated, global player in belting production.  â€“ Retains 26% of JV equity.
  • 2000 – Acquires ISO9002 accreditation by Dutch Council for Certification   for Nylon Tyrecord division.
  • 2000 – Man-power rationalization for Tyrecord facility. 
  • 2003 – Factory Building areas of 350,000 sq.ft. licensed at Goregaon complex. 
  •  2003 – Completes repayment of Secured loans & Public Debentures as per   the BIFR Rehabilitation Scheme.
  • 2004 – Phase out of Tyrecord manufacturing at Goregaon. 
  • 2005 – Additional building area of 150,000 sq.ft. licensed at Goregaon. Further amendments to Rehabilitation Scheme approved.
  • FY 2005-06 – Company achieves profit after depreciation and substantially completes   implementation of Rehabilitation Scheme.
  • 2006-07 – BIFR vide it’s order dated 6th October, 2006 deregistered the Company from the  list of companies under Sick Industrial Companies (Special Provisions) Act 1985 (SICA).  In view of this, the company is no longer a sick industrial unit under BIFR, or, as per the Sick Industrial Companies (Special Provisions) Act 1985.
  •  2007–08 – Development of IT Park at Goregaon commences.
  • 2010 -   Nirlon Ltd won Smart Living Awards for
    i.   Best Safest Project.
    ii.  Best Corporate Spaces - SEZ's & IT Parks.
    iii. Best Green Project - Commercial.
  • 2012 -   Nirlon Ltd won International Property Awards Asia Pacific for
    i.  Best Commercial Renovation / Redevelopment, India
    ii. Best Commercial Renovation / Redevelopment, Asia Pacific
  • 2013 -  Nirlon Ltd won Worldwide Achievers ‘Real Estate Award 2013
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