Nikhil Adhesives

BSE: NIKHILAD · Specialty Chemicals

52W Range₹57 ₹122

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Snapshot

Unlock Nikhil Adhesives's vital signs

Growth · Profitability · Valuation · Strength · Conviction

Company Overview

Business

Nikhil Adhesives Limited is an Indian specialty chemicals manufacturer specialising in polymer-based emulsions and adhesives. The company serves diverse sectors including packaging, furniture, textiles, and construction through both branded consumer products and industrial chemical distribution.

Business Model

The company operates an integrated model combining the manufacturing of branded products like Mahacol with the trading and distribution of imported chemicals. It leverages manufacturing facilities in Gujarat and Maharashtra to supply both domestic and international markets.

Growth Outlook

Growth is driven by the expansion of the domestic distribution network and increased investment in research and development. The company is specifically targeting the paints and coatings sectors to broaden its specialty chemical offerings.

Key Risks

  • Raw Material Price Volatility. Fluctuations in the cost of petrochemical-based raw materials can significantly impact operating margins.
  • Competitive Intensity. The specialty chemicals and adhesives market is highly competitive, requiring constant innovation to maintain market share.
  • Regulatory and Environmental Compliance. Stringent environmental regulations regarding chemical manufacturing processes may increase operational costs.
  • Supply Chain Dependencies. Reliance on imported chemicals for the trading segment exposes the company to global supply chain disruptions and currency fluctuations.

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Key Metrics

REVENUE

₹0 Cr

TTM · standalone

-100.0%YoY

NET PROFIT

₹18 Cr

TTM · standalone

+4.7%YoY

EPS

₹3.84

TTM · standalone

+4.6%YoY

RETURN ON EQUITY

16.9%

TTM · standalone

+2.2 ppYoY

RETURN ON CAPITAL EMPLOYED

22.9%

TTM · standalone

+3.1 ppYoY

P/E

19.7x

Q4 FY26 · standalone

19.7 vs 13.6x5Y avg

EV/EBITDA

8.3x

Q4 FY26 · standalone

8.3 vs 9.1x5Y avg

EBITDA MARGIN

27.0%

TTM · standalone

+20.9 ppYoY

NET PROFIT MARGIN

2.6%

Q3 FY25 · standalone

+0.3 ppYoY

Peers · Specialty Chemicals

CompanyMkt CapP/EEV/EBITDARev Gr YoYEBITDA MgnROEROCE1Y Return
Nikhil AdhesivesNIKHILAD
₹379 Cr21.479.96-100.0%27.0%16.9%22.9%-17.9%
Kronox Lab Sciences LimitedKRONOX
₹666 Cr23.0516.306.1%38.7%27.7%35.9%+11.2%
Black Rose IndusBLACKROSE
₹584 Cr26.0116.4011.0%13.9%18.9%+19.1%
Vipul OrganicsVIPULORG
₹506 Cr63.1130.627.7%10.4%8.9%13.4%+29.6%
Plastiblends India LimitedPLASTIBLEN
₹493 Cr11.546.835.5%9.2%9.7%12.8%+0.5%
Aarti SurfactantAARTISURF
₹458 Cr24.919.8025.2%6.1%7.7%12.4%+19.0%

As of Q4 FY26

Financials