Nirlon Ltd

Price story Before the numbers, the tape. A stock price moves through four repeating seasons: a flat base (stage 1), an advance (2), a top (3), a decline (4). Where the price sits in that cycle frames everything below.

Nirlon Ltd trades at ₹626, in a confirmed uptrend and 12 weeks into that stage. That is +13.2% against its own 200-day average. It sits at 100% of a 52-week range of ₹488 to ₹626. On relative strength it has been ahead of the NIFTY 500 on a trailing-13-week view for 1 straight week.

Today the stock is in a confirmed uptrend — week 12 of stage 2, confirmed. At ₹626 it trades +13.2% versus its 200-day average and sits at 100% of its 52-week range (₹488–₹626).

Against the market, two honest reads. Cumulative: over the last 10.3 years the stock moved +229% while the NIFTY 500 moved +274% — behind the index over the full window. Recent form: on a trailing-13-week view the stock has been ahead for 1 straight week — the ribbon below is that same metric, week by week.

What would end the trend, mechanically: two Friday closes in a row below the 200-day line. That is the exit rule — no debates.

→ The trend is one thing; the bill is another. Are you paying up for it? Next: the P/E sits at the 5th percentile of its own range.

Valuation P/E is the price of ₹1 of annual profit: how many rupees the market pays for each rupee the company earns in a year.

Nirlon Ltd trades at 16.2× P/E, near the bottom of its own range — cheaper only 5% of the time. Its long-run median P/E is 25.4×, measured across 10.4 years of weekly readings. This places the multiple against the stock’s own record, and says nothing about what the business is worth.

Today's P/E of 16.2× is near the bottom of its own range — cheaper only 5% of the time, against a long-run median of 25.4× measured over 10.4 years of weekly readings. This is a comparison against the stock's own history — not a claim about what it is worth.

Why the multiple sits where it does: over the past year annual EPS moved +58.6% against a +19.1% price move — earnings outran the price, pushing the multiple DOWN its own range.

The price move, decomposed: over 5y, of the +16.5%/yr price move, ~+22.1%/yr came from earnings growth and ~−5.6 pp from the multiple (compressing); over 10y, of the +10.8%/yr price move, ~+22.7%/yr came from earnings growth and ~−11.9 pp from the multiple (compressing). The split is the honest approximate (price return minus earnings growth); it makes the rally itself visible instead of hiding it behind the percentile.

Put together: the multiple is low against its own past, so the story rests on the earnings line underneath it, not the multiple.

→ Cheap or dear rides on the earnings. Are they actually growing? Next: the fundamental stage — where the business sits in its arc, and how growth has compounded.

Stage: Consistent Every business sits somewhere on a fundamental arc, and this page names the spot before anything else. The last twelve quarters of revenue, profit and EPS growth — plus the return the business earns on its capital — are read as curves: Deteriorating (the curves are falling), Turning around (a trough has just formed and the last few quarters lift off it), Improving (the climb off the trough is sustained), Consistent (steadily positive with healthy returns), Topping out (still high but decelerating from the peak). When the curves genuinely disagree the read is Mixed; too little history is No read. CAGR (compound annual growth rate) is the smooth yearly pace that turns the starting value into the latest one — the fairest way to compare growth across different time spans. Read the columns together: if the 1-year number towers over the 10-year, recent growth is running hotter than the long-run trend. A dash means that window is not held, or the base year was a loss (where a growth rate is not meaningful).

Nirlon Ltd reads as consistent on its fundamental arc. Consistent — revenue and profit growth have stayed positive through the window, with ROCE at 29.7% and holding. The read is built from 11 quarters across 3 curves, on partial evidence.

Why it matters: steady curves with healthy returns are the compounding setup — the risk is the price, not the business.

One or more growth curves carry a base-effect spike — a large year-on-year move off a near-zero or loss-making comparable quarter. Those spikes are capped before the classifier reads the trajectory, and shown pinned on the chart, so a single distorted quarter does not drive the stage call.

A partial read: at least one curve is short, or the returns curve is not the computed quarterly series — hold the stage word a little more loosely.

→ The stage names the trajectory. Next: the revenue line that produces it, quarter by quarter.

4-Factor Sector Score

75.9/100 — rank 1 of 3 in Realty - Commercial · 97% evidence confidence

Nirlon Ltd scores 75.9 out of 100 against the 3 companies it is compared with in Realty - Commercial, ranking 1. Balanced evidence: keep at normal research priority and require another comparable period before raising conviction.

The four contributions add to the total exactly: 20.4 + 17.4 + 18.1 + 20 = 75.9. This is the SAME number shown on the sector comparison — it is computed once, for the whole peer set, and read here.

What would change it: The read weakens if profit growth turns negative or margin improvement reverses while sector-relative strength deteriorates.

Revenue Revenue is the top line: everything the company billed its customers in the period.

Nirlon Ltd reported ₹171 Cr of revenue in the Mar 26 quarter, +8.2% year on year. That is the 10th straight quarter of year-on-year growth. Over 10 years it has compounded at 8.8% a year. The last full year, FY26, came in at ₹669 Cr. The last four reported quarters add to ₹669 Cr.

Nirlon Ltd reported ₹171 Cr of revenue in the Mar 26 quarter, +8.2% year on year. That is the 10th straight quarter of year-on-year growth. Over 10 years it has compounded at 8.8% a year. The last full year, FY26, came in at ₹669 Cr. The last four reported quarters add to ₹669 Cr.

FY26 revenue came in at ₹669 Cr (+5.2% on the year), capping 10 years at 8.8% compound. The latest quarter (Mar 26) printed ₹171 Cr, +8.2% year on year — the 10th consecutive quarter of year-over-year growth.

Pace check: the last four quarters averaged +5.2% growth against the decade's 8.8% — the current year is running slower than its own long-run rate.

Acceleration check: trailing-twelve-month revenue grew +5.2% over the last 4 quarters against +5.4%/yr over the last 8 — stabilising; TTM profit +58.7% vs +29.9%/yr — accelerating.

→ Revenue grew — did margins hold as it scaled? Next: 77.0% this quarter (−1.0 pp YoY).

Operating margin Operating margin is what is left of every ₹100 of sales after running the business, before interest and tax. It is the cleanest read on pricing power and cost control.

Nirlon Ltd's operating margin is 77.0% in the Mar 26 quarter, −1.0 percentage points against the same quarter a year ago. Across 13 fiscal years the operating margin has ranged 75.0% to 80.0%. The current quarter sits inside that band.

Nirlon Ltd's operating margin is 77.0% in the Mar 26 quarter, −1.0 percentage points against the same quarter a year ago. Across 13 fiscal years the operating margin has ranged 75.0% to 80.0%. The current quarter sits inside that band.

The latest quarter's operating margin is 77.0%, −1.0 pp against the same quarter a year ago. Across 13 fiscal years the operating margin has ranged 75.0%–80.0%.

🚨 Why the margin moved: operating margin went −0.4 pp year on year while gross margin went −0.1 pp — the loss came mostly below the gross line: operating leverage, with costs spread over a bigger revenue base.

→ Margins slipped — did that reach the bottom line? Next: profit +31.5% in the latest quarter.

Net profit Net profit is what survives every cost, interest and tax — the number EPS, dividends and book value all grow from.

Nirlon Ltd earned ₹71.0 Cr of net profit in the Mar 26 quarter, +31.5% year on year. It is the 7th consecutive quarter of growth. Full-year FY26 profit was ₹346 Cr. The 10-year compound rate is 22.9%. That is 41.5% of the quarter's revenue. The same quarter a year earlier earned ₹54.0 Cr.

Nirlon Ltd earned ₹71.0 Cr of net profit in the Mar 26 quarter, +31.5% year on year. It is the 7th consecutive quarter of growth. Full-year FY26 profit was ₹346 Cr. The 10-year compound rate is 22.9%. That is 41.5% of the quarter's revenue. The same quarter a year earlier earned ₹54.0 Cr.

Mar 26 profit was ₹71.0 Cr, +31.5% year on year — the 7th consecutive quarter of growth. On the full year, FY26 printed ₹346 Cr (+58.7%), and the 10-year compound rate is 22.9%.

Why profit moved: revenue contributed +8.2% and the margin −1.0 pp — the quarter was revenue-led, with the margin roughly flat.

Pace comparison, last four quarters: profit +57.7% vs revenue +5.2%. Profit is growing faster than sales — fixed costs are being spread over a bigger base, and each extra rupee of revenue drops more to the bottom line.

→ Profit rose — but did the cash follow? Next: 179% of the last 3 years' profit arrived as cash.

Cash flow — the router The P&L says what was earned; the cash-flow statement says what actually arrived. Operating cash flow (CFO) against profit is the cleanest lie detector in the accounts.

Over the last 3 fiscal years 179% of Nirlon Ltd's reported profit arrived as operating cash — the cash follows the profit. In FY26 that was ₹477 Cr of operating cash against ₹346 Cr of profit. After ₹16.0 Cr of capital spending, ₹461 Cr was left as free cash.

FY26: operating cash of ₹477 Cr against reported profit of ₹346 Cr, leaving free cash of ₹461 Cr after ₹16.0 Cr of capital spending. Across the last 3 fiscal years the conversion rate is 179% of profit.

Cash-flow readings here are annual — that is the resolution our series carries, so this section moves once a year.

Why conversion sits at 179%: the cash cycle held roughly steady between FY21 and FY26 — so conversion tracks profitability rather than the cycle.

Router verdict: no single sink dominates — the next section checks both the working-capital cycle and the capital spending.

→ So follow the cash to where it goes. Next: a 2-day cycle and ₹69.0 Cr of building.

Where the cash goes Working capital is the cash tied up between paying suppliers and getting paid: debtor days (customers owe), inventory days (stock waits), and the cash conversion cycle (the whole loop, in days of sales).

Nirlon Ltd's cash conversion cycle runs 2 days in FY26, down from 2 days in FY21. Capital spending ran ₹69.0 Cr over the last 3 years. At FY26 sales of ₹669 Cr each day of that cycle holds about ₹1.8 Cr, so roughly ₹4.0 Cr sits inside the business at any moment.

FY26: debtors at 2 days, inventory at 0 days — roughly 0.0 months of stock waiting to sell; that is where the cash sits while it waits — for a full cycle of 2 days, tighter than FY21's 2.

In money terms: at FY26 sales of ₹669 Cr, each day of the cycle holds about ₹1.8 Cr — so the 2-day loop keeps roughly ₹4.0 Cr sitting inside the business at any moment.

On the investment side: capital spending of ₹69.0 Cr over the last 3 fiscal years against ₹168 Cr of depreciation — spending at or below maintenance level. Capital work-in-progress stands at ₹7.0 Cr (FY26) — capacity paid for but not yet earning.

The synthesis: neither the cycle nor the build-out is hoarding the cash — the machine is reasonably clean.

→ Does all this activity actually earn its cost of capital? Next: ROCE is 31% and the ROIC − WACC spread is +14.9 pp.

Return on capital Return on capital employed (ROCE) is the profit the whole business earns on all the money in it — equity and debt together. It is the single best test of whether growth creates value or just size.

Nirlon Ltd earns a ROCE of 31% in FY26. That is up from a trough of 5% in FY14. Return on invested capital clears the cost of that capital by +14.9 percentage points, so growth here adds value rather than only size. The wiring behind it is 51.7% net margin on 0.30× asset turns.

FY26 ROCE is 31%, recovered from a FY14 trough of 5% — the full ladder below shows the fall and the climb, undoctored.

Why the return is what it is — the wiring (FY26): 51.7% net margin × 0.30× asset turns × 4.81× balance-sheet leverage ≈ 74.6% on equity. Margin is doing the heavy lifting; leverage is a meaningful part of the equation.

The capstone test — ROIC − WACC: 26.9% − 12.0% = a +14.9 pp spread. The 12.0% is a standing assumption for the cost of capital in India, not a per-stock estimate — read the sign and the size of the spread, not the decimals. A spread this wide means every rupee reinvested creates more than a rupee of value — the engine compounds.

→ Returns like these — is the balance sheet borrowing to make them? Next: debt-to-equity is 2.45.

Debt Debt-to-equity says how much of the business is funded by borrowings. Low is the safe corner; the trend matters as much as the level.

Nirlon Ltd carries total debt of ₹1,147 Cr against shareholder equity of ₹469 Cr as of Mar 26, a debt-to-equity of 2.45. On the annual view that ratio went from 2.46 in FY22 to 2.45 in FY26. Read the returns elsewhere on this page with that leverage in mind.

Mar 26: total debt of ₹1,147 Cr against shareholder equity of ₹469 Cr — a debt-to-equity of 2.45. On the annual view, debt-to-equity went from 2.46 (FY22) to 2.45 (FY26). Read the returns on this page with that leverage in mind.

→ Who owns this, and are they adding or leaving? Next: Foreign institutions cut 6.0 points over 8 quarters.

Ownership Who owns the stock, quarter by quarter: promoters (the controlling owners), foreign and domestic institutions, and the public. Steady accumulation by people close to the numbers is a signal; a quiet register is also an answer.

Foreign institutions cut 6.0 points of Nirlon Ltd over 8 quarters, the biggest move on the register. That takes foreign institutions to 4.5% of the company. Domestic institutions moved −4.8 points over the same window, to 0.0%. The register is read on the four disclosed classes only; nothing is inferred between filings.

The register over the last two years — Foreign institutions: −6.0 points over 8 quarters to 4.5%; Domestic institutions: −4.8 points over 8 quarters to 0.0%; Promoters: −0.1 points over 8 quarters to 67.7%.

🚨 Why the register moved: foreign institutions drove it (−6.0 points), alongside domestic institutions (−4.8 points) — distribution into the market’s bid.

→ One last check: does the safety math agree? Next: the balance-sheet safety line.

Safety line The Z-score estimates how far a company sits from balance-sheet distress — above roughly 3 is safe, below roughly 1.8 is the danger zone. It was built for manufacturers, so it is not applied to banks and lenders.

Nirlon Ltd: the Z-score is not available for this stock, so we say so rather than invent one. It is a distance-to-distress estimate from the balance sheet, not a forecast of failure. The debt, cash-flow and return sections above carry the balance-sheet evidence this page does hold, and each of them states its own reporting date.

The safety line in one sentence: the Z-score is not available for this stock, so we say so rather than invent one.

Frequently asked questions