NR Agarwal Industries Ltd. (NRAIL) AI Stock Analysis

• Market Cap: ₹6.91B
• Dividend Yield: 0.41%
• Average Volume (3M): 4.57K
• Price to Earnings (P/E): 14.3
• Beta (1Y): 0.85
• 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): 8.48
• 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: ₹441.00 ▼(-7.77% Downside)
• Action: Reiterated Date: 10/09/25
• Date: Action: Reiterated 10/09/25

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

Operational margins

Sustained positive EBIT and EBITDA margins indicate the business can extract value from operations even when top-line fluctuates. Durable operating margins support reinvestment in mills, debt servicing and competitive pricing flexibility, improving long-term resilience in packaging cycles.

Revenue growth

A strong recent revenue increase reflects expanding sales or utilization gains in core recycled paper markets. If driven by structural demand and scale, this growth helps absorb fixed costs, improve unit economics and strengthen relationships with downstream converters over the coming months.

Balance sheet posture

Moderate leverage and a stable equity ratio provide financial flexibility for necessary capex and working capital. This balanced capital structure reduces refinancing stress, supports investment in efficiency at mills, and enhances the company’s ability to navigate cyclical demand shifts.

Negative Factors

Negative free cash flow

Persistent negative free cash flow driven by high capex can strain liquidity and force external financing. Over months this may elevate interest costs or limit discretionary investments, making cash management and project ROI critical to avoid eroding operational flexibility.

Revenue and margin volatility

Recurring revenue swings and margin compression reduce predictability of earnings and weaken the cushion against input cost shocks. Structural pressure on gross and net margins can impair profitability unless offset by pricing power, product mix improvements or sustained productivity gains.

Input-cost sensitivity

Heavy reliance on recovered fiber and energy exposes margins to commodity and utility price swings. Without robust hedging or pass-through mechanisms, persistent input inflation can erode spreads and cash generation, challenging margin sustainability in the medium term.

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

NRAIL primarily makes money by manufacturing and selling recycled paper-based packaging raw materials (e.g., duplex board and other packaging/industrial paper grades) to downstream converters and packaging users. Revenue is recognized from the sale of these paper products, with pricing generally linked to prevailing market rates for packaging paper/board and influenced by product mix (different grades and specifications), order volumes, and customer contracts/credit terms. The company’s cost structure and margins are significantly driven by input costs for recovered paper/waste paper and other raw materials, power and fuel, chemicals, freight, and operating efficiency at its mills; accordingly, earnings are affected by the spread between selling prices of finished paper/board and the cost of recovered fiber and energy. Other material revenue streams (e.g., exports, by-products, or specific long-term partnerships) are null.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	18.60B	16.59B	12.93B	17.45B	16.01B	11.30B
Gross Profit	4.20B	2.02B	3.72B	5.94B	1.74B	1.56B
EBITDA	1.47B	1.42B	1.83B	1.94B	1.49B	1.37B
Net Income	209.82M	176.51M	1.25B	993.03M	610.22M	572.29M
Balance Sheet
Total Assets	18.68B	17.70B	15.67B	10.45B	10.01B	9.33B
Cash, Cash Equivalents and Short-Term Investments	505.13M	744.25M	1.73M	80.28M	574.00K	2.06M
Total Debt	7.28B	6.44B	5.79B	1.64B	1.75B	1.95B
Total Liabilities	10.82B	9.95B	8.06B	4.09B	4.65B	4.57B
Stockholders Equity	7.86B	7.75B	7.60B	6.36B	5.36B	4.76B
Cash Flow
Free Cash Flow	-834.15M	-15.50M	-3.99B	-652.32M	535.85M	656.25M
Operating Cash Flow	-290.65M	1.18B	1.35B	1.29B	956.26M	1.16B
Investing Cash Flow	-181.46M	-1.76B	-5.48B	-963.97M	-409.90M	-477.97M
Financing Cash Flow	489.22M	586.06M	4.05B	-246.35M	-547.85M	-667.62M

NR Agarwal Industries Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 478.15
• 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:NRAIL, the sentiment is Negative. The current price of 478.15 is above the 20-day moving average (MA) of 439.71, above the 50-day MA of 446.05, and above the 200-day MA of 412.53, indicating a bearish trend. The MACD of -8.45 indicates Positive momentum. The RSI at 38.47 is Neutral, neither overbought nor oversold. The STOCH value of 7.49 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
RUCHIRA	74 Outperform	₹3.09B	44.75	―	4.14%	2.56%	36.81%
STARPAPER	74 Outperform	₹2.09B	7.89	―	2.15%	-5.21%	-32.96%
NRAIL	67 Neutral	₹6.91B	14.28	―	0.41%	36.98%	-64.34%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
EMAMIPAP	57 Neutral	₹4.47B	7.78	―	1.84%	-6.94%	-78.40%
RAMAPHO	57 Neutral	₹3.89B	10.12	―	0.46%	22.68%	―
ORIENTPPR	45 Neutral	₹3.53B	-5.66	―	1.08%	-0.52%	29.48%

NR Agarwal Industries Ltd. Corporate Events

N R Agarwal wins green nod to raise duplex board capacity at Vapi plant

N R Agarwal Industries has secured an amendment to its Consolidated Consent & Authorization from the Gujarat Pollution Control Board, allowing it to increase duplex paper board production capacity at its Unit I in Vapi from 8,000 metric tonnes per month to 10,000 metric tonnes. The higher capacity becomes effective immediately upon receipt of the amended approval and is subject to compliance with updated environmental conditions.

The company emphasized that this enhancement is purely a regulatory clearance for a higher permitted output, with no additional capital expenditure or separate financing required. The move effectively lifts a regulatory ceiling on production, potentially enabling higher sales volumes and better operating leverage in its core duplex board segment, while affirming continued oversight by state pollution authorities.