(Where glue meets market volatility)
1. At a Glance
The market slapped Nikhil Adhesives with an -11.56% drop on 11 August 2025, as if the stock had personally ghosted investors. This ₹469 crore market-cap sticky player makes polymer emulsions, industrial adhesives, construction chemicals, and the proudly made-in-India RDP (because importing glue is apparently passé). The P/E? 29.7 — not Pidilite-expensive, but still charging “premium glue” prices for “ordinary bond strength” growth.
2. Introduction
Picture a company that’s been around since 1986 — yes, before India even had colour TV in every living room — quietly making the stuff that literally holds your walls, shoes, and maybe your bathroom tiles together. Nikhil Adhesives has 71+ emulsion products, 42+ industrial adhesives, and 6 construction chemicals — a buffet for any B2B buyer who dreams in viscosity charts.
But here’s the rub: over the last five years, sales have grown just 6.75% annually, which is basically like saying your glue has “fast-drying” written on the bottle but still takes overnight to set. Yet, the ROCE at 17% and ROE at 13.5% prove they’re not exactly wasting shareholder money — just not multiplying it at breakneck speed either.
3. Business Model (WTF Do They Even Do?)
The business is split into one broad vertical — Adhesives and Specialty Chemicals — but that’s like saying all food is just “edible items.”
Key Segments
- Polymer Emulsions – Paint & textile binders. Basically, the invisible friend that helps your shirt dye stick and your walls look Pinterest-worthy.
- Industrial Adhesives – For woodworking, packaging, footwear, and more. Think Fevicol, but with Nikhil branding and lower ATL marketing spend.
- Construction Chemicals – Waterproofing, repair
- mortars, tile adhesives. In short, the stuff that saves your bathroom from becoming an indoor swimming pool.
- RDP (Redispersible Polymer Powder) – Their proud “100% import substitute” product. Essentially powdered glue for high-performance construction applications.
Revenue is B2B-heavy, meaning no jingle-driven retail mindshare, but deeper institutional relationships. If you’re a packaging plant or a paint manufacturer, you probably know Nikhil’s sales team by their first names.
4. Financials Overview
Let’s cut the chit-chat and see what the numbers say. FY25 wasn’t exactly a Bollywood climax — more like a docudrama.
TTM Revenue: ₹547 Cr
TTM EBITDA: ₹36 Cr
TTM Net Profit: ₹15.82 Cr
EPS (TTM): ₹3.45
P/E (Latest): 29.7 (based on CMP ₹102)
YoY Sales Growth (Q1 FY26): -23.39%
YoY PAT Growth (Q1 FY26): -29.17%
EBITDA margin is slowly creeping up — from ~5% a few years ago to 6.78% in Q1 FY26 — but still far from chemical industry royalty margins (Pidilite 23% OPM, Vinati 26%). Basically, it’s more of a margin hobby than a passion project right now.
5. Valuation (Fair Value RANGE only)
P/E Method
