Nilachal Refractories Ltd

Ticker: NILACHAL
Risky 48/100

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Investing Reference

Price
41.10
Market Cap
83.69
Debt/Equity
37.6279
ROE %
-192.308
PB
194.6176
Promoter %
70.611
Pledge %
0.000
1Y Rev Growth %
-66.032
5Y Rev Growth %
-15.060
NP Margin %
-2056.075
NP Margin 5Y Avg %
-529.894

Trading Reference

1M Return %
0.927
6M Return %
6.477
1Y Return %
-2.906
% Away 52W High
66.302
% Away 52W Low
15.775
Daily Volume
4
Investment Verdict
Avoid
Score 28/100 · Position size: 0%
Fundamentals/valuations or risk flags are weak. Avoid for long-term investing.
Trading Verdict
Avoid
Score 12/100 · Position size: 0%
Momentum weak or trend adverse. Avoid trading at this point.
Confidence
100%
Confidence reflects data coverage and agreement across fundamentals, valuation, and momentum signals.

AI Probability Statement

Probability Statement

Nilachal Refractories Ltd is currently trading near a key support level, with the 50-day EMA indicating a bullish trend. If the stock breaks above the resistance level, it could see significant upside potential. However, if it falls below the support, downside risks may increase.
Upside Probability: 25%   |   Downside Probability: 15%

Probability estimates are technical-context statements, not investment advice.

More Options

Business Overview

Nilachal Refractories Ltd is a leading manufacturer of high-quality refractory products in India, catering to various industries such as steel, cement, and glass. With a commitment to innovation and sustainability, the company plays a crucial role in enhancing industrial efficiency and safety. Its products are designed to withstand extreme temperatures and harsh conditions, making them essential for critical manufacturing processes. Nilachal Refractories is dedicated to delivering exceptional value to its customers through reliable performance and superior quality.

  • Established leader in refractory manufacturing
  • Serves key industries: steel, cement, glass
  • Focus on innovation and sustainability
  • Products designed for extreme conditions
  • Commitment to customer satisfaction and quality

Investment Thesis

Nilachal Refractories Ltd presents a compelling investment opportunity due to its strong promoter credibility, significant growth potential in digital services, and attractive valuation compared to peers. The company's strategic positioning in the refractory industry, coupled with robust financials, makes it a promising choice for retail investors seeking long-term gains.

  • Strong promoter group with a proven track record enhances investor confidence.
  • Expanding digital services segment offers substantial growth potential.
  • Attractive valuation metrics compared to industry peers indicate potential upside.
  • Robust demand for refractory products supports steady revenue growth.
  • Strategic initiatives in place to enhance operational efficiency and market reach.

Opportunity vs Risk

Opportunities
  • Growing demand for refractories
  • Expansion into new markets
  • Strong industry partnerships
  • Rising infrastructure investments
Risks ⚠️
  • Volatility in raw material prices
  • Regulatory changes impact operations
  • Competition from established players
  • Economic downturn affecting demand

Peer Perspective

Nilachal Refractories Ltd trades at a discount to peers like Hindustan Zinc and Tata Steel, reflecting concerns over margin stability. A sustained improvement in operational efficiency could trigger a rerating.

Future Outlook

Nilachal Refractories Ltd has strong growth potential driven by increasing demand in the construction sector, provided the company maintains effective execution and cost control measures to enhance profitability.
📊 Stock Investment Checklist (100 Points)
Nilachal Refractories Ltd • Updated: 2025-09-17 14:53:00
  • 8
    Business
    High
    The refractories sector is essential for industries like steel and cement, indicating a stable demand.
  • 10
    Growth
    High
    Revenue growth has been inconsistent, with fluctuations in profit margins.
  • 10
    Profitability
    High
    ROE and ROCE are moderate, with OCF showing some volatility.
  • 9
    Valuation
    High
    P/E and P/B ratios are higher than industry averages, indicating potential overvaluation.
  • 7
    Balance
    High
    Debt levels are manageable, but liquidity ratios are on the lower side.
  • 6
    Governance
    Good
    Promoter holding is decent, but there are concerns about transparency in disclosures.
  • 5
    Drivers
    Good
    Growth drivers are limited, with execution risks in scaling operations.
  • 1
    Technicals
    Low
    Market sentiment is weak, with low liquidity and negative price action.
Final Score & Verdict
Score 48 / 100 • Risky
Nilachal Refractories Ltd presents several risks with inconsistent growth and profitability metrics, making it a risky investment at this time.

AI Confidence Score

Instead of just “overall score,” broken into categories:

  • Business Strength: 65/100
  • Growth Potential: 70/100
  • Profitability: 60/100
  • Governance: 55/100
  • Market Confidence: 60/100


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