Nikita Greentech Recycling (NIKITA)

Score breakdown: P/E: 2/3 · ROCE: 1/2 · Growth: 0/2 · Dividend: 0/1

Key Financials

Strengths

• Sales growth of 7.47% shows modest demand in the paper segment.
• ROCE of 16.56% is respectable at the headline level.
• Promoter holding of 58.95% aligns owner interests with minority shareholders.
• Latest quarterly sales of ₹178 Cr provide a reasonable operating base.
• Price near the upper end of the 52-week range suggests market optimism.

Concerns

• Net profit fell 37.65% despite sales growth, indicating severe margin compression.
• Latest quarter net margin is only ~3.4% (₹6 Cr on ₹178 Cr sales), reflecting weak pricing power.
• Piotroski F-Score of 4/9 points to weak financial health and deteriorating fundamentals.
• Critical data for valuation—book value, ROE, and debt/equity—is unavailable, so no margin of safety can be calculated.

AI Analysis

At first glance, Nikita Greentech looks like the kind of small-cap I might want to own—paper recycling is a real business, promoter holds 58.95%, and ROCE at 16.56% is respectable. But respectability is not enough. The profit picture is troubling: sales grew only 7.47%, yet net profit fell 37.65%. In the latest quarter, sales of ₹178 Cr produced just ₹6 Cr net profit—a margin of roughly 3.4%. That tells me this is a low-margin commodity business with little pricing power, where any cost increase or price drop lands directly on earnings. Benjamin Graham taught me to demand a margin of safety. At ₹125.70, the P/E of 15.35 is based on trailing earnings that are already falling. With such a sharp profit decline, the forward P/E is likely much higher—and PEG of 2.05 confirms the market is not giving me a bargain. The Piotroski F-Score of 4/9 warns of weak financial health. I also cannot calculate book value, ROE, or debt/equity because the data is missing; Graham would never buy what he cannot value. No dividend means I receive nothing while waiting. True, the 52-week range of ₹68.00–₹134.90 shows strong price momentum, but momentum is not investment analysis. This looks like a cyclical paper business in a down part of the earnings cycle. I will not chase it here. I need evidence that margins stabilise, debt is manageable, and return on equity is visible before I deploy capital. Better to pass and wait for either a clearer recovery or a much lower price.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer