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Nikhil Adhesives Ltd

NSE: BSE: 526159

70.70

(-4.46%)

Mon, 23 Mar 2026, 05:44 pm

Nikhil Adhesives Analysis

dividend

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Pros

  • Dividends paid are thoroughly covered by earnings (16.2x coverage).
  • Nikhil Adhesives's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.76%).
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Cons

  • Dividends per share have fallen over the past 10 years.
  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Nikhil Adhesives's dividend is below the markets top 25% of dividend payers in India (3.08%).

health

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Pros

  • Nikhil Adhesives is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Nikhil Adhesives is profitable, therefore cash runway is not a concern.
  • Nikhil Adhesives is profitable, therefore cash runway is not a concern.
  • Debt is well covered by operating cash flow (362.9%, greater than 20% of total debt).
  • Debt is covered by short term assets, assets are 9.6x debt.
  • Nikhil Adhesives's cash and other short term assets cover its long term commitments.
  • The level of debt compared to net worth has been reduced over the past 5 years (266.1% vs 32.1% today).
  • Interest payments on debt are well covered by earnings (EBIT is 4.8x coverage).
  • Nikhil Adhesives's level of debt (32.1%) compared to net worth is satisfactory (less than 40%).
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Cons

  • High level of physical assets or inventory.

management

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Pros

  • The average tenure for the Nikhil Adhesives board of directors is over 10 years, this suggests they are a seasoned and experienced board.
  • Umesh's remuneration is lower than average for companies of similar size in India.
  • Umesh's compensation has been consistent with company performance over the past year, both up more than 20%.
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Cons

    misc

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    Pros

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      Cons

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

      past

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      Pros

      • Nikhil Adhesives's 1-year earnings growth exceeds its 5-year average (121.1% vs 39.4%)
      • Nikhil Adhesives has delivered over 20% year on year earnings growth in the past 5 years.
      • Nikhil Adhesives has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
      • Nikhil Adhesives's earnings growth has exceeded the IN Chemicals industry average in the past year (121.1% vs 9.1%).
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      Cons

      • Nikhil Adhesives used its assets less efficiently than the IN Chemicals industry average last year based on Return on Assets.
      • Nikhil Adhesives has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).

      value

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      Pros

      • Nikhil Adhesives's share price is below the future cash flow value, and at a moderate discount (> 20%).
      • Nikhil Adhesives's share price is below the future cash flow value, and at a substantial discount (> 40%).
      • Nikhil Adhesives is good value based on earnings compared to the IN Chemicals industry average.
      • Nikhil Adhesives is good value based on earnings compared to the India market.
      • BSE:526159 is up 15.9% outperforming the Chemicals industry which returned 6.9% over the past month.
      • BSE:526159 is up 15.9% outperforming the market in India which returned 8% over the past month.
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      Cons

      • Nikhil Adhesives is overvalued based on assets compared to the IN Chemicals industry average.
      • 526159 underperformed the Chemicals industry which returned 2.2% over the past year.
      • 526159 underperformed the Market in India which returned -14.5% over the past year.

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