Nila Infrastruct (NILAINFRA)

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

Key Financials

Strengths

• Low leverage with Debt/Equity of only 0.14, reducing financial risk in a cyclical industry
• Healthy capital efficiency: ROE 15.63% and ROCE 19.36%
• Strong promoter holding of 61.90%, aligning management with minority shareholders
• Robust sales growth of 43.35% shows business momentum
• Reasonable valuation on trailing earnings: P/E of 13.94

Concerns

• Profit declined 5.30% despite sales growing 43.35%, indicating margin compression
• Latest quarter margins are thin: only ₹5 Cr net profit on ₹75 Cr sales
• Piotroski F-Score of 4/9 suggests weak financial fundamentals and possible red flags
• No dividend yield, so investors rely solely on price appreciation

AI Analysis

When I look at Nila Infrastruct, I see a small real estate developer with some attractive surface numbers but a few red flags. The return on equity of 15.63% and ROCE of 19.36% are respectable, and a debt-to-equity of only 0.14 tells me they are not over-leveraged. That matters in a capital-heavy, cyclical business like property development. Promoter holding of 61.9% aligns interests with minority shareholders, which I appreciate. However, I must dig deeper. Sales grew 43.35%, yet profit fell 5.30%. That divergence makes me question pricing power and project execution. The latest quarter tells the story: ₹75 Cr of sales but only ₹5 Cr of net profit — a thin 6.7% margin. In real estate, profits can be lumpy, but an F-score of 4/9 signals deteriorating financial health. The stock trades at ₹8.39, 1.92 times book value and 13.94 times trailing earnings. Not expensive on the surface, and the PEG of 0.32 looks cheap if growth continues. But real estate growth is not predictable, and with no dividend yield, waiting costs me opportunity. I would call this a cyclical business with a decent balance sheet, but I want to see margins and profits improve before getting excited. The market cap is small — ₹318 Cr — and that limits my circle of competence. I'll keep this on the watchlist, but I will not rush in.

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