Nitiraj Engineers Ltd. (NITIRAJ) AI Stock Analysis

• Market Cap: ₹2.04B
• Dividend Yield: 0.78%
• Average Volume (3M): 13.27K
• Price to Earnings (P/E): 121.5
• Beta (1Y): 0.80
• Revenue Growth: -3.39%
• EPS Growth: -2.10%
• Country: IN
• Employees: 321
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 0.39
• Shares Outstanding: 10,251,000
• 10 Day Avg. Volume: 2,497
• 30 Day Avg. Volume: 13,270
• PEG Ratio: -0.96
• Price to Book (P/B): 3.36
• Price to Sales (P/S): 3.63
• P/FCF Ratio: 35.66
• 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: 63 Neutral
• Price Target: ₹190.00 ▲(4.33% Upside)
• Action: Reiterated Date: 10/17/25
• Date: Action: Reiterated 10/17/25

Nitiraj Engineers Ltd. scores a 63, driven primarily by its strong financial performance, particularly in profitability and cash flow metrics, which provide stability and growth potential. However, technical analysis indicates mixed signals with potential short-term weakness, and the valuation suggests the stock may be overvalued, limiting upside potential. The absence of earnings call data and corporate events means these factors do not influence the score.

Positive Factors

Balance Sheet Strength

Extremely low leverage and an 89.1% equity ratio provide durable financial resilience. This reduces refinancing risk, preserves borrowing capacity for capex or cyclical downturns, and supports steady operations and strategic investments without reliance on debt financing.

Cash Flow Generation

Material positive free cash flow and an OCF-to-net-income ratio of 2.91 indicate strong cash conversion. This underpins self-funded investment, working capital needs, and potential shareholder returns, and reduces dependence on external capital over a multi-quarter horizon.

Margin Recovery

Significant gross and net margin improvement signals better cost control or pricing power. Sustained higher margins can offset top-line weakness, improve free cash flow, and enhance profitability durability if operational efficiencies and product mix gains persist.

Negative Factors

Revenue Decline

A 23.8% year-on-year revenue drop is a structural headwind that can erode scale economics. Even with margin recovery, lower sales volumes restrict absolute profit growth, limit reinvestment capacity, and increase sensitivity to single large contract cycles or market demand shifts.

Modest ROE

ROE of 5.8% remains modest, indicating limited efficiency in converting equity into profits. Over the medium term this constrains shareholder value creation and suggests the company must either boost margins or grow revenue meaningfully to improve returns on capital.

Product-Sales Reliance

Business is primarily hardware sales with only potential after-sales revenue and no disclosed service revenue breakup. Reliance on one-time equipment sales limits recurring income and increases cyclicality, making long-term revenue predictability and customer retention weaker.

Nitiraj Engineers Ltd. Business Overview & Revenue Model

Company Description

Nitiraj Engineers Limited engages in the manufacture and sale of various electronic weighing scales and systems, currency counting machines, and electronic fare meters for industrial and domestic consumption in India and internationally. It offers jewelry, tabletop, price computing, piece counting, platform, hanging, industrial weighing, baby weighing, person weighing, mother and child weighing, adult weighing, body mass index, and kitchen scales; and analytical weighing balance, special application indicators, currency counting machines, taxi and rickshaw fare meters, and home automation products. The company markets its products under the Phoenix brand name through a network of dealers to customers. Nitiraj Engineers Limited was incorporated in 1989 and is based in Dhule, India.

How the Company Makes Money

Nitiraj Engineers Ltd. generates revenue through several key streams, primarily from the sale of precision-engineered components and assemblies to various industries, including automotive and aerospace. The company engages in long-term contracts and partnerships with major industry players, ensuring a steady demand for its products. Additionally, NITIRAJ offers specialized services such as design engineering and product development, which contribute to its revenue by providing tailored solutions for clients. The firm also benefits from recurring revenue through maintenance and aftermarket services, enhancing customer loyalty and providing continued support for its products. Strategic collaborations with suppliers and technology partners further bolster its market position and contribute to its financial performance.

Nitiraj Engineers Ltd. Financial Statement Overview

Summary

Nitiraj Engineers Ltd. shows a recovery in financial performance, particularly in profitability and cash flow metrics. Despite a significant revenue decrease, profitability metrics such as net profit margin and EBIT margin have improved, suggesting enhanced operational efficiency. The balance sheet is robust with low debt levels and a strong equity position, reducing financial risk. Cash flows are strong, indicating efficient cash management and the ability to support growth initiatives.

Income Statement

Nitiraj Engineers Ltd. shows a mixed income statement performance. The recent year saw a decline in total revenue by 23.8% from the previous year which is concerning. However, there is a recovery in gross profit margin from 26.8% to 38.3%, indicating improved efficiency in managing production costs. Net profit margin also recovered significantly from -3.5% to 6.3%, showing a turnaround in profitability. The EBIT and EBITDA margins improved, reflecting better operational performance despite the revenue drop.

Balance Sheet

The company's balance sheet demonstrates a strong equity position, with an equity ratio of 89.1%, indicating low leverage. The debt-to-equity ratio is extremely low at 0.0003, reflecting minimal reliance on debt financing. Return on equity improved to 5.8% from a negative position, showing improved profitability. The strong equity base provides stability and reduces financial risk.

Cash Flow

Cash flows are a highlight for Nitiraj Engineers Ltd., with a positive free cash flow of 77.9 million compared to a negative 15.35 million two years ago. The operating cash flow to net income ratio stands at 2.91, indicating strong cash generation capability relative to accounting profits. The company has demonstrated improved cash flow management and growth, supporting future operations and investments.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	827.85M	765.17M	1.00B	460.80M	396.26M	533.98M
Gross Profit	394.51M	293.20M	422.03M	213.36M	143.45M	117.63M
EBITDA	121.55M	103.38M	193.86M	37.00M	-8.27M	82.04M
Net Income	61.55M	48.31M	120.36M	-3.71M	-35.27M	35.37M
Balance Sheet
Total Assets	0.00	930.04M	905.18M	798.25M	772.26M	785.15M
Cash, Cash Equivalents and Short-Term Investments	199.94M	208.46M	134.57M	8.07M	17.11M	29.69M
Total Debt	0.00	230.00K	2.33M	31.91M	39.78M	6.17M
Total Liabilities	-828.11M	101.94M	108.57M	122.45M	95.27M	57.63M
Stockholders Equity	828.11M	828.11M	796.61M	675.80M	676.99M	727.52M
Cash Flow
Free Cash Flow	0.00	77.92M	154.42M	-1.53M	-38.59M	25.98M
Operating Cash Flow	0.00	140.63M	178.75M	7.08M	14.53M	66.40M
Investing Cash Flow	0.00	-124.39M	-128.39M	4.98M	-56.91M	-40.12M
Financing Cash Flow	0.00	-18.35M	-32.00M	-11.86M	29.55M	-1.82M

Nitiraj Engineers Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 182.11
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:NITIRAJ, the sentiment is Positive. The current price of 182.11 is below the 20-day moving average (MA) of 194.87, below the 50-day MA of 188.57, and below the 200-day MA of 198.84, indicating a bullish trend. The MACD of 6.07 indicates Negative momentum. The RSI at 53.56 is Neutral, neither overbought nor oversold. The STOCH value of 72.45 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:NITIRAJ.

Nitiraj Engineers Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MAHESHWARI	70 Outperform	₹1.23B	9.09	―	―	2.13%	35.04%
NITIRAJ	63 Neutral	₹2.04B	121.46	―	0.78%	-3.39%	-2.10%
DUCON	63 Neutral	₹1.06B	12.44	―	―	4.34%	-3.29%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
BRNL	50 Neutral	₹1.57B	2.58	―	―	-57.13%	―
RKEC	49 Neutral	₹997.77M	20.28	―	―	-12.26%	-36.87%
SADBHIN	47 Neutral	₹1.18B	-0.31	―	―	4.63%	67.17%