Synopsis:
A small-cap stock jumped 9.2 percent after the company issued strong guidance, targeting 218 percent revenue growth over the next three fiscal years along with a clear roadmap to enhance profitability and strengthen margins.
A small cap company is in the spotlight lately due to the strong guidance the company had pitched in its latest investor presentation. The future outlook included a strong revenue growth in the coming three fiscal years along with potential for better profitability margin.
With a market cap of Rs 1,928 Cr Nitco Ltd stocks hit an intraday high of Rs 91.9 which is 9.2 percent higher than the previous close of Rs 84.12.
Q2 Result
In Q2FY26 the company generated a revenue of Rs 107 Cr which is a 63 percent YoY growth from Rs 66.01 Cr in Q2FY25, but had a QoQ dip of 28 percent from Rs 150.2 Cr of Q1FY26. The net profits for Q2FY26 stood at Rs 94 Lakhs which is a fall of 98 percent from Q1FY26’s Rs 47.46 Cr, and on YoY basis it grew from making a loss of Rs 34.61 Cr in Q2FY25. Even though the company’s 3 year sales CAGR is a negative 9 percent, the stock has managed to give a 3 year compounding return of 54 percent.
Future Outlook
1. NITCO plans to rapidly expand its distribution network, by increasing its dealer base from 300-1,200 over the next 2– 3 fiscal years, along with a strong focus on Tier-2 and Tier-3 cities in order to boost nationwide market penetration.
2. The company aims to launch high value premium product lines that include designer, digital, and luxury tiles, marbles, and mosaics. This would strengthen their product differentiation through advanced technology and even boost innovative design capabilities.
3. NITCO is focusing on key accounting businesses, by targeting builders, developers, and institutional buyers. The company has already secured LoIs worth approximately Rs280 crore from reputed developers like Prestige Estates and Lodha Group.
4. In order to enhance customer experience and brand recall, NITCO will roll out new retail formats, which as of now includes concept studios, digital-first outlets, and immersive experience showrooms, which would be supported by influencer and showroom-based marketing.
5. The company is setting up PoS 2.0 in Silvassa, which is going to be a state of the art centralized Point of Sale system that would be designed to improve supply chain management, operational efficiency, and customer service quality.
6. NITCO is committed to enhance its automation and digital integration, as it is trying to improve its design workflows, manufacturing efficiency, inventory control, and distribution processes in order to deliver higher margins and process operations seamlessly.
7. The company is looking to actively monetize its 445 plus acre land bank, using joint development agreements, asset monetization, and premium real estate development. And is also expecting to unlock over Rs 1000 Cr cashflow in the next 3-5 years, which as of H1FY26 is of about Rs 58 Cr.
8. NITCO is targeting aggressive revenue growth, with projections of achieving nearly Rs 1,000 crore in revenue by FY29, supported by an expected EBITDA margin improvement toward the 8– 10 percent range.
Incorporated in 1966, NITCO Ltd is in the business of manufacturing tiles and marble and is headquartered in Mumbai, India. With its 15 offices the company has a pan India presence, NITCO serves a diverse domestic and global customer base and exports premium tiles and marble products to 40 plus countries which includes Nepal, South Africa, Belgium, the UAE, Ireland, Thailand, Bhutan, and Canada. Domestically the company supplies to major clients which includes- ICICI Bank, Sobha, Reliance, Prestige, DLF, Oberoi, Brigade, and several other leading real estate and corporate brands.
Written by Adithya Menon
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