Niraj Cement Structurals Limited (NIRAJ) AI Stock Analysis

• Market Cap: ₹1.60B
• Dividend Yield: N/A
• Average Volume (3M): 18.57K
• Price to Earnings (P/E): 10.3
• Beta (1Y): 1.41
• Revenue Growth: 14.89%
• EPS Growth: 7.47%
• Country: IN
• Employees: 19
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Engineering & Construction
• EPS (TTM): 0.95
• Shares Outstanding: 59,694,340
• 10 Day Avg. Volume: 18,875
• 30 Day Avg. Volume: 18,570
• PEG Ratio: 0.40
• Price to Book (P/B): 1.13
• Price to Sales (P/S): 0.54
• P/FCF Ratio: -3.58
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 58 Neutral
• Price Target: ₹27.00 ▼(-28.08% Downside)
• Action: Downgraded Date: 03/14/26
• Date: Action: Downgraded 03/14/26

The score is mainly supported by strong revenue growth, improving margins, and a low-leverage balance sheet, but is held back by significant negative operating/free cash flow and clearly bearish technical trend signals. Valuation is modestly supportive due to the low P/E, though lack of dividend data limits the valuation upside.

Positive Factors

Sustained revenue growth

A multi-year rise from 1.71bn to 5.13bn shows durable top-line expansion, indicating successful market penetration and demand for products. Sustained revenue growth improves scale economics, supports capex absorption and provides a base for longer-term margin recovery and reinvestment.

Improving profit margins

Progressive improvement in gross and net margins reflects better cost control and pricing discipline versus prior years. Consistent margin gains, even if modest, imply structural moves toward profitability that can compound with scale and operational fixes, supporting sustainable earnings.

Very low leverage, strong equity base

Extremely low debt and a high equity ratio provide durable financial flexibility, reducing refinancing and interest risks. A stronger equity base allows the company to fund growth or weather cyclical downturns without large interest burdens, supporting longer-term strategic initiatives.

Negative Factors

Negative operating cash flow

Large negative operating and free cash flows signal persistent liquidity pressure that can limit reinvestment and force reliance on external financing. Structural negative cash generation undermines self-funding, increases vulnerability to tighter credit markets, and can constrain capital allocation choices.

Low absolute margins and modest EBITDA

Persistently low gross and modest operating margins point to structural cost or pricing challenges in the business model. Low margin capacity reduces cash conversion, limits ability to absorb input cost shocks, and makes long-term profitability highly sensitive to operational efficiency improvements.

Operational efficiency and liquidity risks

Management acknowledgement of efficiency shortfalls alongside cash flow strains suggests structural operational gaps. Without sustained productivity gains or working-capital fixes, the company may face recurring margin pressure, higher working capital needs, and reliance on financing that weakens resilience.

Niraj Cement Structurals Limited Business Overview & Revenue Model

Company Description

Niraj Cement Structurals Limited (NIRAJ) is a prominent player in the construction and infrastructure sector, primarily engaged in the manufacture and supply of a diverse range of cement-based products. The company specializes in producing high-quality cement, ready-mix concrete, and various pre-cast concrete structures. With a focus on meeting the growing demands of the construction industry, NIRAJ has established a robust distribution network, catering to both residential and commercial projects.

How the Company Makes Money

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Niraj Cement Structurals Limited Financial Statement Overview

Summary

Strong revenue growth and improving profit margins support the score, and leverage is low with a solid equity ratio. However, the sharp deterioration to negative operating and free cash flow in 2025 meaningfully raises liquidity risk and pulls the score down.

Income Statement

The company has shown a solid revenue growth trend with an increase from 1.71 billion in 2021 to 5.13 billion in 2025. The gross profit margin is improving but still low at 6.72% in 2025, compared to 0.43% in 2021. The net profit margin has increased to 2.94% in 2025 from 0.77% in 2021, indicating better cost control. However, the EBIT and EBITDA margins remain relatively modest, suggesting room for operational efficiency improvements.

Balance Sheet

The company's balance sheet reflects moderate leverage with a debt-to-equity ratio of 0.01 in 2025, showing a significant reduction from 0.17 in 2021. The equity ratio is strong at 62.98%, indicating a stable equity base. Return on equity (ROE) has improved to 6.23% in 2025 from 0.75% in 2021, reflecting better profitability. However, potential risks include fluctuating total liabilities and the need for further strengthening of equity.

Cash Flow

The cash flow situation presents challenges, with a negative operating cash flow of -720.9 million in 2025 compared to 269.1 million in 2024. Free cash flow has also deteriorated to -765.3 million in 2025 from 230.1 million in 2024, indicating potential liquidity issues. Despite these challenges, the company has managed to secure financing, as seen from the positive financing cash flow, which could support future operations.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	5.53B	5.07B	4.71B	6.06B	3.56B	1.75B
Gross Profit	348.15M	345.28M	276.67M	190.56M	90.97M	44.59M
EBITDA	286.70M	226.45M	149.50M	86.75M	47.64M	36.21M
Net Income	204.46M	150.82M	97.23M	43.27M	24.29M	13.23M
Balance Sheet
Total Assets	3.90B	3.84B	2.25B	3.15B	3.13B	2.77B
Cash, Cash Equivalents and Short-Term Investments	256.16M	413.29M	229.44M	228.12M	371.90M	56.60M
Total Debt	33.00M	22.19M	7.24M	259.27M	134.61M	303.17M
Total Liabilities	1.35B	1.42B	725.36M	1.39B	1.33B	1.00B
Stockholders Equity	2.55B	2.42B	1.52B	1.77B	1.79B	1.77B
Cash Flow
Free Cash Flow	-274.21M	-765.33M	230.13M	-298.63M	384.75M	-52.27M
Operating Cash Flow	-247.39M	-720.92M	269.13M	-298.50M	385.19M	-51.82M
Investing Cash Flow	117.39M	-207.72M	-48.56M	143.54M	-110.39M	-91.89M
Financing Cash Flow	9.89M	1.05B	-257.14M	50.12M	-169.91M	93.38M

Niraj Cement Structurals Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 37.54
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:NIRAJ, the sentiment is Negative. The current price of 37.54 is above the 20-day moving average (MA) of 29.04, above the 50-day MA of 31.96, and below the 200-day MA of 41.49, indicating a bearish trend. The MACD of -1.77 indicates Positive momentum. The RSI at 34.68 is Neutral, neither overbought nor oversold. The STOCH value of 18.74 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:NIRAJ.

Niraj Cement Structurals Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BEDMUTHA	70 Outperform	₹4.23B	-23.14	―	―	34.36%	-100.15%
CENTEXT	67 Neutral	₹1.54B	15.66	―	―	―	―
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
NIRAJ	58 Neutral	₹1.60B	10.33	―	―	14.89%	7.47%
SALSTEEL	57 Neutral	₹3.88B	15.95	―	―	0.19%	-2962.74%
BVCL	55 Neutral	₹830.34M	-10.25	―	―	-2.41%	-4.51%
KAKATCEM	53 Neutral	₹808.87M	-5.21	―	2.30%	-32.19%	-1097.08%