NR Agarwal Industries Ltd. (NRAIL) AI Stock Analysis

• Market Cap: ₹7.66B
• Dividend Yield: 0.41%
• Average Volume (3M): 4.57K
• Price to Earnings (P/E): 36.5
• Beta (1Y): 0.67
• Revenue Growth: 36.98%
• EPS Growth: -64.34%
• Country: IN
• Employees: 1,365
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Paper, Lumber & Forest Products
• EPS (TTM): -0.87
• Shares Outstanding: 17,019,100
• 10 Day Avg. Volume: 9,530
• 30 Day Avg. Volume: 4,568
• PEG Ratio: -0.26
• Price to Book (P/B): 0.51
• Price to Sales (P/S): 0.24
• P/FCF Ratio: -252.56
• 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: 67 Neutral
• Price Target: ₹526.00 ▲(10.01% Upside)

NR Agarwal Industries Ltd. benefits from strong technical momentum and operational efficiency, despite financial challenges from high capital expenditures. The stock's valuation is reasonable, but the modest dividend yield offers limited income potential. Investors should monitor liquidity management closely.

Positive Factors

Revenue Growth

The company has demonstrated strong revenue growth, indicating successful market expansion and product demand, which supports long-term business sustainability.

Operational Efficiency

Maintaining healthy EBIT and EBITDA margins shows effective cost management and operational efficiency, crucial for long-term profitability and competitiveness.

Market Position

A strong distribution network enhances market reach and profitability, providing a competitive edge and supporting sustained revenue growth.

Negative Factors

Cash Flow Challenges

Negative free cash flow highlights liquidity risks, potentially limiting the company's ability to invest in growth opportunities and manage financial obligations.

Profitability Pressures

A drop in gross profit margin indicates increased cost pressures, which could affect long-term profitability if not addressed through cost management strategies.

Revenue Volatility

Revenue volatility and decreased net profit margin suggest challenges in maintaining consistent profitability, impacting long-term financial stability.

NR Agarwal Industries Ltd. Business Overview & Revenue Model

Company Description

N R Agarwal Industries Limited develops, manufactures, and sells recycled and finished paper products in India. The company offers duplex boards, such as coated paper board grey back and white back for offset printing, embossing, and foil stamping; writing and printing papers; copier paper; and newsprint products. Its products are primarily used in FMCG packaging, textbooks and notebooks, and print media applications. The company exports its products to approximately 27 countries. N R Agarwal Industries Limited was founded in 1975 and is headquartered in Mumbai, India.

How the Company Makes Money

NR Agarwal Industries Ltd. generates revenue primarily through the sale of its paper products, particularly kraft paper, which serves as a key input for various packaging needs across different industries. The company benefits from a diverse customer base, including packaging manufacturers, retailers, and other businesses requiring paper solutions. Key revenue streams include direct sales to customers, distribution partnerships, and long-term contracts with major clients. Additionally, NRAIL's focus on innovation and sustainability has allowed it to enhance its product offerings, leading to premium pricing and increased market share. Strategic partnerships with suppliers and logistics companies also contribute to cost efficiencies and improved service delivery, further enhancing profitability.

NR Agarwal Industries Ltd. Financial Statement Overview

Summary

NR Agarwal Industries Ltd. shows operational strength with healthy EBIT and EBITDA margins despite revenue volatility and margin compression. The balance sheet is stable with manageable leverage, but cash flow challenges due to high capital expenditures require careful liquidity management.

Income Statement

NR Agarwal Industries Ltd. has shown a volatile revenue trend, with a significant drop in gross profit margin from the previous year, indicating increased cost pressures. The net profit margin has also decreased, reflecting challenges in maintaining profitability. However, the company has demonstrated resilience with a positive EBIT and EBITDA margin, suggesting operational efficiency amidst revenue fluctuations.

Balance Sheet

The company's balance sheet reflects moderate leverage, with a debt-to-equity ratio indicating balanced debt management. The return on equity is moderate, illustrating reasonable profitability relative to shareholder investments. The equity ratio remains stable, showcasing a sound financial position, though there is room for improvement in asset utilization.

Cash Flow

Cash flow from operations remains robust, but the company faces challenges with negative free cash flow, largely due to high capital expenditures. The operating cash flow to net income ratio is strong, indicating efficient cash generation. However, the negative free cash flow to net income ratio highlights potential liquidity risks if capital spending is not managed prudently.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	17.64B	16.59B	12.93B	17.45B	16.01B	11.30B
Gross Profit	5.20B	2.02B	3.72B	5.94B	1.74B	1.56B
EBITDA	1.49B	1.42B	1.83B	1.94B	1.49B	1.37B
Net Income	307.97M	176.51M	1.25B	993.03M	610.22M	572.29M
Balance Sheet
Total Assets	0.00	17.70B	15.67B	10.45B	10.01B	9.33B
Cash, Cash Equivalents and Short-Term Investments	744.25M	744.25M	1.73M	80.28M	574.00K	2.06M
Total Debt	0.00	6.44B	5.79B	1.64B	1.75B	1.95B
Total Liabilities	-7.75B	9.95B	8.06B	4.09B	4.65B	4.57B
Stockholders Equity	7.75B	7.75B	7.60B	6.36B	5.36B	4.76B
Cash Flow
Free Cash Flow	0.00	-15.50M	-3.99B	-652.32M	535.85M	656.25M
Operating Cash Flow	0.00	1.18B	1.35B	1.29B	956.26M	1.16B
Investing Cash Flow	0.00	-1.76B	-5.48B	-963.97M	-409.90M	-477.97M
Financing Cash Flow	0.00	586.06M	4.05B	-246.35M	-547.85M	-667.62M

NR Agarwal Industries Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 478.15
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:NRAIL, the sentiment is Neutral. The current price of 478.15 is above the 20-day moving average (MA) of 473.54, above the 50-day MA of 472.63, and above the 200-day MA of 372.48, indicating a neutral trend. The MACD of -5.08 indicates Positive momentum. The RSI at 41.70 is Neutral, neither overbought nor oversold. The STOCH value of 14.56 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IN:NRAIL.

NR Agarwal Industries Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
STARPAPER	74 Outperform	₹2.50B	6.50	―	2.15%	-5.21%	-32.96%
RUCHIRA	68 Neutral	₹3.52B	5.22	―	4.14%	2.56%	36.81%
NRAIL	67 Neutral	₹7.66B	36.51	―	0.41%	36.98%	-64.34%
RAMAPHO	65 Neutral	₹6.42B	15.24	―	0.46%	22.68%	―
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
EMAMIPAP	57 Neutral	₹4.99B	26.97	―	1.84%	-6.94%	-78.40%
ORIENTPPR	43 Neutral	₹4.78B	-18.76	―	1.08%	-0.52%	29.48%