BSE:532722

Stock Analysis Report

Executive Summary

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


Snowflake Analysis

Adequate balance sheet with weak fundamentals.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 532722's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-11.9%

532722

-1.5%

IN Building

-1.5%

IN Market


1 Year Return

-32.6%

532722

12.9%

IN Building

10.7%

IN Market

Return vs Industry: 532722 underperformed the Indian Building industry which returned 14.9% over the past year.

Return vs Market: 532722 underperformed the Indian Market which returned 11.1% over the past year.


Shareholder returns

532722IndustryMarket
7 Day-11.9%-1.5%-1.5%
30 Day-27.4%-0.7%-2.7%
90 Day-9.8%5.4%1.3%
1 Year-32.6%-32.6%17.0%12.9%12.7%10.7%
3 Year-61.2%-61.2%30.6%22.8%22.0%15.1%
5 Year24.2%24.2%86.6%65.9%34.5%22.0%

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 compared to its fair value and its price relative to the market?

2.56x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: 532722 (₹23.6) is trading above our estimate of fair value (₹7.81)

Significantly Below Fair Value: 532722 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 532722 is unprofitable, so we can't compare its PE Ratio to the Building industry average.

PE vs Market: 532722 is unprofitable, so we can't compare its PE Ratio to the Indian market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 532722's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 532722 is overvalued based on its PB Ratio (2.6x) compared to the IN Building industry average (0.9x).


Next Steps

Future Growth

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

19.4%

Forecasted Capital Goods 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?

8.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 532722 is currently unprofitable.

Growing Profit Margin: 532722 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 532722 is unprofitable, but has reduced losses over the past 5 years at a rate of 8% per year.

Accelerating Growth: Unable to compare 532722's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 532722 is unprofitable, making it difficult to compare its past year earnings growth to the Building industry (1.2%).


Return on Equity

High ROE: 532722 has a negative Return on Equity (-109.19%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is NITCO's financial position?


Financial Position Analysis

Short Term Liabilities: 532722's short term assets (₹7.0B) exceed its short term liabilities (₹4.6B).

Long Term Liabilities: 532722's short term assets (₹7.0B) do not cover its long term liabilities (₹7.1B).


Debt to Equity History and Analysis

Debt Level: 532722's debt to equity ratio (1172.5%) is considered high.

Reducing Debt: 532722's debt to equity ratio has reduced from 12458.9% to 1172.5% over the past 5 years.


Balance Sheet

Inventory Level: 532722 has a high level of physical assets or inventory.

Debt Coverage by Assets: 532722's debt is not covered by short term assets (assets are 0.8x 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.

Stable Cash Runway: Whilst unprofitable 532722 has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: 532722 is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 20% per year.


Next Steps

Dividend

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


Dividend Yield vs Market

company0%marketbottom25%0.6%markettop25%2.6%industryaverage0.6%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate 532722's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 532722's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 532722's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 532722's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: 532722 is not paying a notable dividend for the Indian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 532722's dividend in 3 years as they are not forecast to pay a notable one for the Indian market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.4yrs

Average board tenure


CEO

Mahesh Shah 0

1.3yrs

Tenure

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


Board Members

NamePositionTenureCompensationOwnership
Vivek Talwar
Chairman & MD0yrsno data8.84% 154.3m
Sharath Bolar
Independent Director5.3yrs₹235.00kno data
Bharti Dhar
Independent Director4.9yrs₹135.00kno data
Vivek Grover
Nominee Director1.4yrs₹60.00kno data
Samir Chawla
Nominee Director1.4yrs₹60.00kno data
Siddharth Kothari
Independent Director0.6yrsno datano data

1.4yrs

Average Tenure

54yo

Average Age

Experienced Board: 532722's board of directors are not considered experienced ( 1.4 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

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: ₹1.746b
  • Shares outstanding: 71.86m
  • Website: https://www.nitco.in

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 two segments, Tiles and Other Related Products; and Real Estate segments. It offers floor tiles, such as ceramic tiles, vitrified tiles – soluble salt, ultra/double charged, gres porcelain tiles (naturoc), and HD digital tiles; wall tiles, including HD digital tiles, base tiles, and highlighters; natural and engineered marbles; mosaic, which cover signature, magnum opus, décor, solitaire, creust, and frame collections, as well as steps risers and skirtings; and metal crafts. The company sells its products through approximately 5,000 sub dealers and 1,000 direct dealers; and operates 11 display centers under the Le Studio brand name, as well as 175 showrooms as franchisees under the Le Studio Express and Nitco Look names. In addition, NITCO Limited exports its products to Nepal, South Africa, the United Arab Emirates, Belgium, Ireland, Thailand, Bahrain, Uganda, Seychelles, Botswana, Zambia, Maldives, Poland, Qatar, Australia, Bhutan, Kenya, Ethiopia, Singapore, Kuwait, Taiwan, Tanzania, Fiji, Canada, and internationally. Further, the company develops real estate projects. NITCO Limited was founded in 1953 and is headquartered in Mumbai, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/18 12:50
End of Day Share Price2020/02/18 00:00
Earnings2019/12/31
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.