At a Glance
NMS Global Ltd is a microcap chameleon – dabbling in civil construction, pre-engineered buildings, telecom services, skill development, trading, and consulting. With a ₹61 stock price and just ₹18 Cr market cap, it’s a cocktail of chaos, ambition, and questionable execution. While profits are technically positive, capital structure looks stretched, and working capital cycles are… legendary.
1. 🎣 Introduction with Hook
If you’re wondering what NMS Global actually does, the answer is — everything but scale.
It started as a food processor (idk why), moved into contracting (why not?), then trading, telecom backend marketing, and now seems to do a little bit of everything except make real money consistently.
Yet the stock trades at ₹61 — up 120% from its 52-week low — and carries a P/E of 45. Because who doesn’t love the thrill of a potential multibagger with no clear business model?
2. 🏗️ Business Model – WTF Do They Even Do?
Let’s break this mess down:
- Old Avataar: Food processing & commodity exports
- Current Avataar:
- Civil construction ✅
- Pre-engineered buildings ✅
- Skill development ✅
- Telecom backend marketing ✅
- Financial consultancy ✅
- Engineering services ✅
- Trading (yes, still) ✅
Basically, if there’s a tender somewhere — they’ll apply.
It’s a textbook case of a “consultancy + trading” shell that wants to become infra-adjacent, but hasn’t yet cracked productization, branding, or reliable verticals.
3. 💰 Financials Overview – Profit, Margins, ROE, Growth
| Metric | FY25 | FY24 | FY23 |
|---|---|---|---|
| Revenue | ₹13.7 Cr | ₹24.8 Cr | ₹6.6 Cr |
| PAT | ₹0.41 Cr | ₹0.33 Cr | ₹0.28 Cr |
| OPM | 12.45% | 6.81% | 6.40% |
| ROE | 6.87% | 7% | 8% |
| ROCE | 3.24% | 7.89% | 4.83% |
🧠 Observations:
- Revenue halved in FY25. That’s a concern.
- Margins improved — thanks to tight cost control or low base effect.
- PAT is still microscopic, and barely justifies any premium multiple.
4. 📊 Valuation – Is It Cheap, Meh, or Crack?
| Metric | Value |
|---|---|
| P/E | 45x |
| P/B | 5.5x |
| Market Cap | ₹18.4 Cr |
| Book Value | ₹11.1 |
| ROE (3Y avg) | 8.5% |
🙈 This is Crack-Valuation territory.
- Even with generous EPS growth assumptions, it’s hard to justify anything above 15x earnings.
- Fair Value Range = ₹17 – ₹25 based on:
- P/E of 12–15x on FY25 EPS of ₹1.36
- Zero dividend payout
- High debtor and working capital days
5. 🍿 What’s Cooking – News, Triggers, Drama
🔸 Two new Non-Exec Directors just got appointed: Shiv Tripathi & Deepak Mishra (as of July 2025) — could signal expansion or governance pivot.
🔸 Past dabbles in various sectors might consolidate into a focused bet — possibly in telecom infra services or skill dev (Govt push zone).
🔸 Also notable: A massive 976 working capital days. Either they’re building pyramids or collecting payments from ghosts.
6. 🧾 Balance Sheet – How Much Debt, How Many Dreams?
| Metric | FY25 |
|---|---|
| Equity | ₹3.01 Cr |
| Reserves | ₹0.33 Cr |
| Borrowings | ₹59.03 Cr (!) |
| Other Liabilities | ₹31.66 Cr |
| Total Liabilities | ₹94 Cr |
| Net Worth | ₹3.34 Cr |
🧨 Translation: They have borrowed ₹59 Cr to run a ₹13 Cr business. That’s not leverage, that’s Olympic-level tightrope walking.
And FY25 debt jumped 4X vs FY24. Red flag? Or funding some EPC dream?
7. 💸 Cash Flow – Sab Number Game Hai
| Year | CFO (₹ Cr) | FCF? | Verdict |
|---|---|---|---|
| FY25 | Not reported yet | Negative | 🚩 |
| FY24 | ₹25.8 Cr | Unclear | Good |
| FY23 | -₹3.59 Cr | Negative | Bad |
Only one out of 5 years shows clean cash from ops. Either receivables are absorbing liquidity, or projects are prepaid. Either way, the consistency is missing.
8. 📉 Ratios – Sexy or Stressy?
| Ratio | FY25 | FY24 |
|---|---|---|
| ROE | 6.87% | 7% |
| ROCE | 3.24% | 7.89% |
| Interest Coverage | ~1.2x | Barely |
| Debt/Equity | ~18x | 😬 |
| Debtor Days | 217 | 🔺 |
| Working Capital Days | 976 | 🚨 |
📛 Conclusion: Stressy AF. Especially with debtor days spiking again and interest coverage at whisper levels.
9. 🧾 P&L Breakdown – Show Me the Money
| Year | Sales | OPM | PAT | EPS |
|---|---|---|---|---|
| FY25 | ₹13.66 Cr | 12.45% | ₹0.41 Cr | ₹1.36 |
| FY24 | ₹24.83 Cr | 6.81% | ₹0.33 Cr | ₹1.10 |
| FY23 | ₹6.56 Cr | 6.4% | ₹0.28 Cr | ₹0.93 |
NMS did show improvement in margin % even when revenue halved — possibly due to leaner operations or exit from loss-making segments. But in absolute terms, earnings are tiny.
10. ⚔️ Peer Comparison – Who Else in the Game?
| Peer | MCap (Cr) | P/E | ROE | Sales (Cr) |
|---|---|---|---|---|
| MSTC | ₹3,784 | 19x | 24% | ₹311 Cr |
| MMTC | ₹10,399 | 107x | 6% | ₹2.7 Cr (!!) |
| Redington | ₹24,086 | 20x | 14% | ₹99,333 Cr |
| NMS Global | ₹18.4 | 45x | 6.87% | ₹13.7 Cr |
😂 We included MMTC for the laughs, but even compared to other small-cap services/trading hybrids, NMS looks expensive.
11. 📦 Miscellaneous – Shareholding, Promoters
- Promoters hold a steady 49.93% — no recent pledging or dilution.
- Public owns the rest — no big anchor or institutional names.
- Shareholder count stable around 4,500 — no unusual spikes (good).
- Recent board expansion = possibly laying foundation for bigger things?
But the company still lacks an identity in a crowded space.
12. 🧠 EduInvesting Verdict™
“Too many sectors. Too little scale. Too high a price.”
NMS Global is that enthusiastic multitasker at a startup who joins every Slack channel, pitches in every meeting, but never hits a deadline.
Sure, there’s some margin growth. Sure, the debt may have funded expansion. But unless revenue visibility improves and receivables come down — this is less a stock and more a spreadsheet experiment.
📉 Fair Value Range: ₹17 – ₹25
🧮 Based on EPS of ₹1.36 and sane P/E range of 12–15x for a company with erratic cash flows and wild WC cycles.
✍️ Written by Prashant | 📅 08 July 2025
Tags: NMS Global Ltd, SME stocks, microcap analysis, stock research India, financial statement deep-dive, telecom infra India, EduInvesting
