BSE:500307

Stock Analysis Report

Executive Summary

Nirlon Limited engages in the development and management of an industrial park.


Snowflake Analysis

Solid track record with imperfect balance sheet.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 500307 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.08%

500307

-1.4%

IN Real Estate

-0.08%

IN Market


1 Year Return

53.7%

500307

23.4%

IN Real Estate

9.5%

IN Market

Return vs Industry: 500307 exceeded the Indian Real Estate industry which returned 23.4% over the past year.

Return vs Market: 500307 exceeded the Indian Market which returned 9.5% over the past year.


Shareholder returns

500307IndustryMarket
7 Day-0.08%-1.4%-0.08%
30 Day6.2%-5.3%0.01%
90 Day19.4%8.9%3.2%
1 Year54.3%53.7%24.4%23.4%11.5%9.5%
3 Year59.5%57.8%54.9%51.7%23.6%16.7%
5 Year52.2%49.4%36.5%31.4%35.5%22.9%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is Nirlon undervalued compared to its fair value and its price relative to the market?

28.33x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 500307 (₹298.1) is trading above our estimate of fair value (₹286.91)

Significantly Below Fair Value: 500307 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 500307 is poor value based on its PE Ratio (28.3x) compared to the Real Estate industry average (13.8x).

PE vs Market: 500307 is poor value based on its PE Ratio (28.3x) compared to the Indian market (13.3x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 500307's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 500307 is overvalued based on its PB Ratio (6.8x) compared to the IN Real Estate industry average (0.7x).


Next Steps

Future Growth

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

14.8%

Forecasted Real Estate 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 Nirlon 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 Nirlon performed over the past 5 years?

15.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 500307 has high quality earnings.

Growing Profit Margin: 500307's current net profit margins (31.1%) are higher than last year (18.3%).


Past Earnings Growth Analysis

Earnings Trend: 500307's earnings have grown by 15.2% per year over the past 5 years.

Accelerating Growth: 500307's earnings growth over the past year (75.2%) exceeds its 5-year average (15.2% per year).

Earnings vs Industry: 500307 earnings growth over the past year (75.2%) exceeded the Real Estate industry 2.2%.


Return on Equity

High ROE: Whilst 500307's Return on Equity (23.89%) is high, this metric is skewed due to their high level of debt.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Nirlon's financial position?


Financial Position Analysis

Short Term Liabilities: 500307's short term assets (₹252.0M) do not cover its short term liabilities (₹1.1B).

Long Term Liabilities: 500307's short term assets (₹252.0M) do not cover its long term liabilities (₹10.8B).


Debt to Equity History and Analysis

Debt Level: 500307's debt to equity ratio (235.8%) is considered high.

Reducing Debt: 500307's debt to equity ratio has increased from 35.4% to 235.8% over the past 5 years.

Debt Coverage: 500307's debt is well covered by operating cash flow (25.8%).

Interest Coverage: 500307's interest payments on its debt are well covered by EBIT (5.5x coverage).


Balance Sheet

Inventory Level: 500307 has a high level of physical assets or inventory.

Debt Coverage by Assets: 500307's debt is not covered by short term assets (assets are 0x debt).


Next Steps

Dividend

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

0.25%

Current Dividend Yield


Dividend Yield vs Market

company0.3%marketbottom25%0.6%markettop25%2.6%industryaverage0.8%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: 500307's dividend (0.25%) isn’t notable compared to the bottom 25% of dividend payers in the Indian market (0.59%).

High Dividend: 500307's dividend (0.25%) is low compared to the top 25% of dividend payers in the Indian market (2.58%).


Stability and Growth of Payments

Stable Dividend: 500307 is not paying a notable dividend for the Indian market, therefore no need to check if payments are stable.

Growing Dividend: 500307 is not paying a notable dividend for the Indian market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: 500307 is not paying a notable dividend for the Indian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 500307'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?

4.4yrs

Average board tenure


CEO

Rahul Sagar (48yo)

1.3yrs

Tenure

₹23,368,000

Compensation

Mr. Rahul V. Sagar has been an Executive Director of Nirlon Ltd. since June 24, 2006 and has been its Chief Executive Officer since November 12, 2018. Mr. Sagar serves as the Chief Operating Officer of Sem ...


CEO Compensation Analysis

Compensation vs Market: Rahul's total compensation ($USD325.31K) is about average for companies of similar size in the Indian market ($USD378.25K).

Compensation vs Earnings: Rahul's compensation has been consistent with company performance over the past year.


Board Members

NamePositionTenureCompensationOwnership
Rahul Sagar
Executive Director & CEO1.3yrs₹23.37m1.48% 396.4m
Kunnasagaran Chinniah
Non Executive Director3.8yrs₹250.00kno data
Moosa Raza
Independent Chairman of the Board13.3yrs₹1.00mno data
Kunal Sagar
Non-Executive Director4.4yrs₹450.00k1.48% 396.4m
Arjan Gurbuxani
Non-Executive Independent Director26.1yrs₹900.00k0.00080% 214.9k
Rajinder Singh
Non Executive Independent Director0.8yrsno datano data
Anjali Seth
Non Executive Independent Director0.8yrsno datano data

4.4yrs

Average Tenure

62yo

Average Age

Experienced Board: 500307's board of directors are considered experienced (4.4 years average tenure).


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.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

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


Key Information

  • Name: Nirlon Limited
  • Ticker: 500307
  • Exchange: BSE
  • Founded: 1958
  • Industry: Real Estate Operating Companies
  • Sector: Real Estate
  • Market Cap: ₹26.864b
  • Shares outstanding: 90.12m
  • Website: https://www.nirlonltd.com

Number of Employees


Location

  • Nirlon Limited
  • Pahadi Village
  • Off the Western Express Highway
  • Mumbai
  • Maharashtra
  • 400063
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
500307BSE (Mumbai Stock Exchange)YesEquity SharesININRFeb 1995

Biography

Nirlon Limited engages in the development and management of an industrial park. It is involved in the development of the Nirlon Knowledge Park, an industrial/information technology park located in Goregaon, Mumbai. The company was incorporated in 1958 and is based in Mumbai, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/22 12:32
End of Day Share Price2020/02/20 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.