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Nilkamal Ltd

NSE: NILKAMAL BSE: 523385

1410.20

(1.93)%

Tue, 03 Feb 2026, 02:10 pm

Analysis

dividend

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Pros

  • Dividends per share have increased over the past 10 years.
  • Dividends paid are thoroughly covered by earnings (7.2x coverage).
  • Dividends after 3 years are expected to be thoroughly covered by earnings (7.5x coverage).
  • Nilkamal'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 been volatile in the past 10 years (annual drop of over 20%).
  • Nilkamal's dividend is below the markets top 25% of dividend payers in India (3.08%).

future

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Pros

  • Nilkamal's earnings growth is expected to exceed the low risk savings rate of 7.2%.
  • Nilkamal's earnings are expected to exceed the low risk growth rate next year.
  • Performance (ROE) is expected to be above the current IN Packaging industry average.
  • Nilkamal's revenue growth is expected to exceed the India market average.
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Cons

  • Cash flow for Nilkamal is expected to decrease over the next 2 years.
  • Nilkamal's earnings are expected to grow by 12.3% yearly, however this is not considered high growth (20% yearly).
  • Nilkamal's earnings growth is positive but not above the India market average.
  • Nilkamal's net income is expected to increase but not above the 50% threshold in 2 years time.
  • Nilkamal is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
  • A decline in Nilkamal's performance (ROE) is expected over the next 3 years.
  • Nilkamal's revenue is expected to increase but not above the 50% threshold in 2 years time.
  • Nilkamal's revenue is expected to grow by 8.2% yearly, however this is not considered high growth (20% yearly).

health

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Pros

  • Nilkamal is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Nilkamal is profitable, therefore cash runway is not a concern.
  • Nilkamal is profitable, therefore cash runway is not a concern.
  • Debt is well covered by operating cash flow (436.6%, greater than 20% of total debt).
  • Debt is covered by short term assets, assets are 14.1x debt.
  • Nilkamal'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 (45.4% vs 6.1% today).
  • Interest payments on debt are well covered by earnings (EBIT is 11.6x coverage).
  • Nilkamal's level of debt (6.1%) 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 Nilkamal board of directors is over 10 years, this suggests they are a seasoned and experienced board.
  • Hiten's compensation has been consistent with company performance over the past year, both up more than 20%.
  • More shares have been bought than sold by Nilkamal individual insiders in the past 3 months.
  • The tenure for the Nilkamal management team is about average.
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Cons

  • Hiten's remuneration is higher than average for companies of similar size in India.

misc

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Pros

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    Cons

    • Nilkamal is covered by less than 3 analysts.

    past

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    Pros

    • Nilkamal's 1-year earnings growth exceeds its 5-year average (18.1% vs 10.8%)
    • Nilkamal's year on year earnings growth rate has been positive over the past 5 years.
    • Nilkamal used its assets more efficiently than the IN Packaging industry average last year based on Return on Assets.
    • Nilkamal's earnings growth has exceeded the IN Packaging industry average in the past year (18.1% vs 16.2%).
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    Cons

    • Nilkamal's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
    • Nilkamal has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).

    value

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    Pros

    • Nilkamal is good value based on expected growth next year.
    • 523385 outperformed the Packaging industry which returned -14.7% over the past year.
    • 523385 outperformed the Market in India which returned -14.5% over the past year.
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    Cons

    • Nilkamal's share price is below the future cash flow value, but not at a moderate discount (< 20%).
    • Nilkamal's share price is below the future cash flow value, but not at a substantial discount (< 40%).
    • Nilkamal is overvalued based on assets compared to the IN Packaging industry average.
    • Nilkamal is overvalued based on earnings compared to the IN Packaging industry average.
    • Nilkamal is overvalued based on earnings compared to the India market.
    • BSE:523385 is up 5.2% underperforming the Packaging industry which returned 6.3% over the past month.
    • BSE:523385 is up 5.2% underperforming the market in India which returned 8% over the past month.

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