1. At a Glance – The Scale That’s Weighing Investors
At ₹200 per share and a market cap of ₹205 Cr, Nitiraj Engineers Ltd is currently priced like a premium gadget brand — but performing like a confused weighing scale that needs recalibration. The stock is down 38.4% over 1 year, yet up 9.21% in 3 months. Sounds dramatic? Wait till you see the numbers.
Q3 FY26 revenue stands at ₹11.31 Cr, down 69.5% YoY. PAT? ₹0.39 Cr — down a mind-bending 94% YoY. And yet the stock trades at 125 P/E with ROE of just 5.63%.
Debt? Practically zero at ₹0.02 Cr.
Dividend? A polite 0.75%.
ROCE? 7.96%.
Book Value? ₹82.1.
The real question: is this a sleepy smallcap quietly building the next growth leg — or a company whose valuation hasn’t yet noticed the financial gravity?
Let’s open the weighing scale and see what’s inside.
2. Introduction – The Government Scale Supplier With Drone Dreams
Founded in 1989, Nitiraj Engineers manufactures electronic weighing scales, currency counting machines, taxi fare meters, and now — wait for it — drones.
Yes. From baby weighing scales under Child Growth Monitoring Systems (CGMS) to agricultural and defense drones. That’s quite a product journey.
The company operates under the Phoenix brand and has:
- 13 branch offices
- 430 dealers
- Distribution presence in Middle East & SAARC
It primarily supplies state governments — especially for mother and child weighing programs under Poshan and ICDS schemes.
Now here’s where it gets spicy.
The company reported massive revenue in Mar 2024 (₹100.44 Cr annual sales), but TTM sales have fallen to ₹60.85 Cr. That’s a sharp drop.
Why?
Order-based business.
When government orders hit — revenue spikes. When they don’t — the financials go on silent mode.
So this isn’t a steady FMCG machine. It’s more like a project-based industrial supplier.
Are you comfortable investing in revenue volatility like this?
