Nitiraj Engineers Ltd. (NITIRAJ) AI Stock Analysis

• Market Cap: ₹2.22B
• Dividend Yield: 0.78%
• Average Volume (3M): 13.27K
• Price to Earnings (P/E): 121.5
• Beta (1Y): 0.67
• 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: ₹234.00 ▲(28.49% 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

Strong balance sheet

Very low leverage (debt-to-equity ~0.0003) and an 89.1% equity ratio give Nitiraj strong balance-sheet resilience. This reduces refinancing risk, supports capex and strategic spend, and lets the company withstand demand shocks without relying on external debt over multiple quarters.

Robust cash generation

A positive FCF of ₹77.9m and an operating cash flow to net income ratio of 2.91 indicate durable cash conversion. Strong cash generation funds working capital, maintenance capex and service expansion, lowering dependence on external financing over the medium term.

Improved margins

Recovery in gross margin to 38.3% and net margin to 6.3%, plus better EBIT/EBITDA, suggests structural gains in production efficiency or pricing. Higher margins increase resilience to revenue volatility and enhance capacity to reinvest in product and service capabilities.

Negative Factors

Material revenue decline

A 23.8% year-over-year revenue decline signals weakened demand or lost orders and erodes scale. Persistent top-line contraction can make margin improvements harder to sustain, limit reinvestment, and constrain long-term growth prospects if recovery stalls.

Sharp EPS contraction

An EPS decline of roughly 86.6% indicates significant earnings volatility and a fragile recovery. Large swings in EPS reduce retained earnings available for investment, complicate planning, and can impair investor confidence over multiple reporting periods.

Low trading liquidity

Average 3-month volume around 5,639 shares implies limited liquidity and a small public float. Low trading depth can deter institutional investors, raise cost of capital, and limit the company's flexibility to raise equity quickly for strategic initiatives in the medium term.

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 primarily makes money by selling weighing and measurement hardware that it designs and manufactures. The core revenue stream is product sales across categories such as industrial weighing scales/systems, precision balances, weighbridges, and components like load cells and indicators, typically sold through a combination of direct (institutional/industrial) sales and dealer/distributor channels (channel specifics: null). In addition to initial equipment sales, the company can generate ongoing revenue from after-sales activities—such as installation, calibration, servicing/maintenance, repairs, and spare parts/consumables—attached to its installed base (breakout of service vs. product revenue: null). Any material contribution from exports, major customer/industry concentration, large partnerships, or long-term contracts is not publicly specified in the provided context; therefore those details are null.

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	866.14M	765.17M	1.00B	460.80M	396.26M	533.98M
Gross Profit	427.79M	293.20M	422.03M	213.36M	143.45M	117.63M
EBITDA	143.65M	103.38M	193.86M	37.00M	-8.27M	82.04M
Net Income	77.63M	48.31M	120.36M	-3.71M	-35.27M	35.37M
Balance Sheet
Total Assets	940.94M	930.04M	905.18M	798.25M	772.26M	785.15M
Cash, Cash Equivalents and Short-Term Investments	96.22M	208.46M	134.57M	8.07M	17.11M	29.69M
Total Debt	232.00K	230.00K	2.33M	31.91M	39.78M	6.17M
Total Liabilities	99.72M	101.94M	108.57M	122.45M	95.27M	57.63M
Stockholders Equity	841.22M	828.11M	796.61M	675.80M	676.99M	727.52M
Cash Flow
Free Cash Flow	-133.82M	77.92M	154.42M	-1.53M	-38.59M	25.98M
Operating Cash Flow	-81.48M	140.63M	178.75M	7.08M	14.53M	66.40M
Investing Cash Flow	87.86M	-124.39M	-128.39M	4.98M	-56.91M	-40.12M
Financing Cash Flow	-359.00K	-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 207.51, below the 50-day MA of 193.38, and below the 200-day MA of 197.42, indicating a bullish trend. The MACD of 8.20 indicates Negative momentum. The RSI at 62.17 is Neutral, neither overbought nor oversold. The STOCH value of 71.64 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	₹1.32B	9.09	―	―	2.13%	35.04%
NITIRAJ	63 Neutral	₹2.22B	121.46	―	0.78%	-3.39%	-2.10%
DUCON	63 Neutral	₹955.28M	12.44	―	―	4.34%	-3.29%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
BRNL	50 Neutral	₹1.47B	2.58	―	―	-57.13%	―
RKEC	49 Neutral	₹847.11M	20.28	―	―	-12.26%	-36.87%
SADBHIN	43 Neutral	₹1.06B	-0.31	―	―	4.63%	67.17%

Nitiraj Engineers Ltd. Corporate Events

Nitiraj Engineers Wins ₹5.32-Crore Order for PHOENIX Weighing Scales

Nitiraj Engineers Ltd. has secured a domestic order from Hyderabad-based Linkwell Telesystems Pvt. Ltd. to supply 9,925 PHOENIX-brand electronic weighing scales, model NEP-100, with a capacity of 100 kg and multiple connectivity options. The contract, valued at ₹5.32 crore including GST, is to be executed within four weeks of receiving advance payment, signaling a notable short-term boost to the company’s order book and reinforcing its positioning as a key supplier in India’s weighing solutions market.

The order does not involve any related-party transactions or promoter-group interests, underscoring that it is a purely commercial win from an external client. Timely execution of this sizable contract may support near-term revenue and capacity utilization, while the inclusion of advanced interfaces such as USB, Bluetooth, and RS232 highlights the company’s focus on feature-rich, connected weighing systems that align with evolving industry requirements.