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    Nikhil Adhesives

    Mumbai-based manufacturer of adhesives, emulsions and construction chemicals, and India's largest producer of RDP (re-dispersible polymer) powder

    Chemicals
    Commodities

    Overview

    Price

    Market Cap

    ₹333 Cr

    Sector

    Chemicals

    Commodities

    Rank

    Performance

    Financials

    Income Statement

    Financial Trajectories

    11
    Quarterly

    Balance Sheet

    Balance Sheet

    ₹ Cr · Annual
    Line itemFY20FY21FY22FY23FY24FY25FY26FY26
    LiabilitiesEquity Capital55555555
    Reserves41568197109125131141
    Borrowings3428283554594568
    Other Liabilities111202203159128134110121
    Total Liabilities191291316295295323291334
    AssetsFixed Assets4454647694969492
    CWIP60140101
    Investments00000000
    Other Assets141236250215202227197242
    Total Assets191291316295295323291334

    Cash Flow

    Cash Flow

    ₹ Cr · Annual
    Line itemFY19FY20FY21FY22FY23FY24FY25FY26
    ActivitiesCash from Operating16212325211470
    Cash from Investing-10-12-7-15-19-17-10-3
    Cash from Financing-7-9-15-6-310-31
    SummaryCapital Expenditure
    Free Cash Flow6716102-3-4-4
    FCF Margin

    Valuation

    Assumptions

    Current — 526159
    Price
    ₹79
    EPS (TTM)
    ₹3.51
    PE (TTM)
    22.5
    Profit growth
    -1.9%

    The Earnings Per Share over the last 12 months.

    %

    Your assumption of the company's expected yearly EPS growth (e.g., 6 for 6%).

    Pre-filled with the lower of median (35.5×) and current (22.5×) PE — the conservative anchor.

    %

    The annualized return you aim to achieve. We solve for the price that delivers it, then compare to today's price.

    Valuation

    Current price
    ₹79
    vs
    Fair value · 15% return
    ₹30
    62%Overvalued

    At -1.9% growth and a 23× exit, ₹79 only delivers your return if you pay ₹30. The price is currently baking in 17% growth.

    EPS grows -1.9%/yr for 5 years, then fades to 6% over 2, exits at 23×.

    YearGrowthEPS (₹)
    FY27-1.9%3.44
    FY28-1.9%3.38
    FY29-1.9%3.31
    FY30-1.9%3.25
    FY31-1.9%3.19
    FY322.1% ·fade3.25
    FY336.0% ·fade3.45

    Methodology: we discount normalized net profit as a proxy for owner earnings (an earnings-power approximation — not full free cash flow). Terminal growth is capped at 6% (≈ nominal GDP) regardless of the required return. This is an analytical tool, not investment advice.

    Learn to analyse Nikhil Adhesives

    Guides on how to read this kind of business and the numbers that matter.