BSE:532722

Stock Analysis Report

Executive Summary

NITCO Limited, together with its subsidiaries, manufactures and sells floor and wall solutions in India.

Snowflake

Fundamentals

Adequate balance sheet and slightly overvalued.

Risks

  • NITCO has significant price volatility in the past 3 months.
  • NITCO is not covered by any analysts.

Share Price & News

How has NITCO's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-2.6%

BSE:532722

-1.6%

IN Building

1.3%

IN Market


1 Year Return

-54.3%

BSE:532722

-0.9%

IN Building

-1.5%

IN Market

532722 underperformed the Building industry which returned -0.9% over the past year.

532722 underperformed the Market in India which returned -1.5% over the past year.


Share holder returns

532722IndustryMarket
7 Day-2.6%-1.6%1.3%
30 Day-7.8%-5.4%-0.8%
90 Day-21.4%-6.1%-3.7%
1 Year-54.3%-54.3%-0.3%-0.9%0.3%-1.5%
3 Year-52.6%-52.6%29.7%27.7%29.2%22.6%
5 Year58.6%58.6%133.2%125.4%47.8%33.9%

Price Volatility Vs. Market

How volatile is NITCO's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is NITCO undervalued based on future cash flows and its price relative to the stock market?

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

NITCO's share price is below the future cash flow value, and at a moderate discount (> 20%).

NITCO's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

NITCO is loss making, we can't compare its value to the IN Building industry average.

NITCO is loss making, we can't compare the value of its earnings to the India market.


Price Based on Expected Growth

Unable to calculate PEG ratio for NITCO, we can't assess if its growth is good value.


Price Based on Value of Assets

NITCO is overvalued based on assets compared to the IN Building industry average.


Next Steps

Future Growth

How is NITCO expected to perform in the next 1 to 3 years based on estimates from 0 analysts?

22.0%

Forecasted Building industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as NITCO has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has NITCO performed over the past 5 years?

43.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

NITCO does not make a profit even though their year on year earnings growth rate was positive over the past 5 years.

Unable to compare NITCO's 1-year earnings growth to the 5-year average as it is not currently profitable.

Unable to compare NITCO's 1-year growth to the IN Building industry average as it is not currently profitable.


Return on Equity

It is difficult to establish if NITCO has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.


Return on Assets

It is difficult to establish if NITCO has efficiently used its assets last year compared to the IN Building industry average (Return on Assets) as it is loss-making.


Return on Capital Employed

It is difficult to establish if NITCO improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.


Next Steps

Financial Health

How is NITCO's financial position?


Financial Position Analysis

NITCO is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

NITCO's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

NITCO's level of debt (625%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (1223.8% vs 625% today).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 1x debt.


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Whilst loss making NITCO has sufficient cash runway for more than 3 years if it maintains the current positive free cash flow level.

Whilst loss making NITCO has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by -141.8% per year.


Next Steps

Dividend

What is NITCO's current dividend yield, its reliability and sustainability?


Dividend Yield and Payments Analysis

Unable to evaluate NITCO's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate NITCO's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as NITCO has not reported any payouts.

Unable to verify if NITCO's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as NITCO has not reported any payouts.


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

What is the CEO of NITCO's salary, the management and board of directors tenure and is there insider trading?

3.2yrs

Average management tenure


CEO

Mahesh Shah

0.8yrs

Tenure

Mr. Mahesh Shah has been the Chief Executive Officer of Nitco Limited since October 24, 2018. 


Management Age and Tenure

3.2yrs

Average Tenure

The tenure for the NITCO management team is about average.


Board Age and Tenure

2.6yrs

Average Tenure

The average tenure for the NITCO board of directors is less than 3 years, this suggests a new board.


Insider Trading

No 3 month individual insider trading information.


Recent Insider Transactions

Buy₹91,90120 Feb 19
Poonam Talwar
EntityIndividual
Shares2,600
Max Price₹35.35
Buy₹97,32019 Feb 19
Poonam Talwar
EntityIndividual
Shares3,000
Max Price₹32.44
Buy₹160,32705 Feb 19
Poonam Talwar
EntityIndividual
Shares4,550
Max Price₹35.24

Ownership Breakdown


Management Team

  • Vivek Talwar (63yo)

    Chairman & MD

    • Tenure: 8.3yrs
  • Bhaskar Borkar (57yo)

    Chief Financial Officer

    • Compensation: 2.96m
  • N. Naik

    President of HRD

  • Puneet Motwani

    Company Secretary & Compliance Officer

    • Tenure: 3.2yrs
  • Mahesh Shah

    Chief Executive Officer

    • Tenure: 0.8yrs

Board Members

  • Vivek Talwar (63yo)

    Chairman & MD

  • Sharath Bolar (68yo)

    Independent Director

    • Tenure: 4.7yrs
    • Compensation: 280.00k
  • Bharti Dhar

    Independent Director

    • Tenure: 4.3yrs
    • Compensation: 180.00k
  • Vivek Grover

    Nominee Director

    • Tenure: 0.8yrs
  • Samir Chawla

    Nominee Director

    • Tenure: 0.8yrs
  • Siddharth Kothari

    Independent Director

Company Information

NITCO Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: NITCO Limited
  • Ticker: 532722
  • Exchange: BSE
  • Founded: 1953
  • Industry: building products
  • Sector: capital goods
  • Market Cap: ₹2.206b
  • Shares outstanding: 71.86m
  • Website: Click here

Number of Employees


Location

  • NITCO Limited
  • Plot No.3
  • Nitco House
  • Mumbai
  • Maharashtra
  • 400042
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
532722BSE (Mumbai Stock Exchange)YesEquity SharesININRMar 2006
NITCONSEI (National Stock Exchange of India)YesEquity SharesININRMar 2006

Biography

NITCO Limited, together with its subsidiaries, manufactures and sells floor and wall solutions in India. The company operates through Tiles and Other Related Products; and Real Estate segments. It offers f ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/07/18 12:42
End of Day Share Price2019/07/18 00:00
Earnings2019/03/31
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.