1. At a Glance
Ahmedabad-based Nila Spaces Ltd is a micro-cap real estate company with big ambitions—GIFT City, carbon-neutral projects, and a 3-year profit CAGR of 345%. But the numbers have more mood swings than a startup founder on caffeine.
2. Introduction with Hook
Real estate in India is like Bollywood: over-promised, under-delivered, but always dramatic. Nila Spaces Ltd enters the frame with a ₹588 Cr market cap, dreams of GIFT City stardom, and a face value of ₹1 that’s working way too hard.
- FY25 PAT: ₹15 Cr (from a loss just 2 years ago)
- ROCE: 24.9% | ROE: 10.9%
- Stock up 81% in the last 1 year
Welcome to the strangest real estate success story you’ve never heard of.
3. Business Model (WTF Do They Even Do?)
Nila Spaces Ltd is in the business of developing residential and commercial real estate projects, primarily in Gujarat, with a fresh tilt toward GIFT City.
Recent project announcements:
- Nila Urban Living: ₹129 Cr construction contract awarded
- Project VIDA: “Carbon Neutrality Assessment” initiated
- Premium GIFT City Residential Project: Announced July 2024
Revenue is largely lumpy, project-based, and spiked in FY24–25 after a long dry spell. Think of them as the underdog realty company sneaking into GIFT while giants battle over Gurgaon.
4. Financials Overview
| Year | Sales (₹ Cr) | Net Profit (₹ Cr) | OPM % | EPS (₹) |
|---|---|---|---|---|
| FY21 | 45 | -2 | 4% | -0.06 |
| FY23 | 1 | -4 | -815% | -0.10 |
| FY24 | 91 | 13 | 12% | 0.34 |
| FY25 | 136 | 15 | 24% | 0.37 |
Key takeaway?
From literally ₹1 Cr revenue in FY23 to ₹136 Cr in FY25. That’s either a miracle… or deferred revenue finally landing.
5. Valuation
| Metric | Value |
|---|---|
| CMP | ₹14.8 |
| EPS (FY25) | ₹0.37 |
| P/E | 40x |
| Book Value | ₹3.61 |
| P/B | 4.1x |
Fair Value Range (because why not dream):
| Method | Assumption | FV Range |
|---|---|---|
| PE Valuation | 20–30x normalized EPS | ₹7–₹11 |
| NAV Method | Projected asset base (GIFT project included) | ₹12–₹16 |
→ Current valuation implies future perfection. Be cautious of a perfectionist real estate company—that’s a unicorn in a fog.
6. What’s Cooking – News, Triggers, Drama
- GIFT City Projects: ₹129 Cr contract awarded, major buzz generator
- Carbon Neutrality PRs: Project VIDA might be green, but earnings aren’t quite there
- CARE BBB Credit Rating (Nov 2024)
- Reversal from Loss to Profit in FY24
- Death of Promoter-Chairman (2023): Emotional & corporate turning point
- FIIs → OUT. Public → IN: Mass retail onboarded
7. Balance Sheet
| (₹ Cr) | FY21 | FY23 | FY24 | FY25 |
|---|---|---|---|---|
| Equity Capital | 39 | 39 | 39 | 39 |
| Reserves | 79 | 75 | 88 | 103 |
| Borrowings | 10 | 0 | 1 | 22 |
| Total Liabilities | 149 | 182 | 230 | 311 |
| Net Block | 8 | 7 | 32 | 26 |
Key Points:
- Borrowing is creeping back up post-GIFT hype
- Reserve base still small = less cushion for future hiccups
- Capex toward project assets (32 Cr in FY24)
8. Cash Flow – Sab Number Game Hai
| Year | CFO | CFI | CFF | Net CF |
|---|---|---|---|---|
| FY23 | ₹13 Cr | -₹2 Cr | ₹0 Cr | ₹11 Cr |
| FY24 | ₹29 Cr | -₹23 Cr | -₹4 Cr | ₹2 Cr |
| FY25 | -₹40 Cr | ₹31 Cr | ₹5 Cr | -₹4 Cr |
Key Point:
- Operating Cash Flow has turned negative in FY25 → mismatch with accounting profits?
- Project execution likely causing working capital chaos
9. Ratios – Sexy or Stressy?
| Metric | FY25 |
|---|---|
| ROCE | 24.9% |
| ROE | 10.9% |
| OPM | 24% |
| Debtor Days | 3 |
| Inventory Days | 833 (!!) |
| CCC | 799 Days |
Translation:
- You’re sitting on land. A lot of it.
- Execution is slow, cash is stuck, but margins are high when sales finally come
10. P&L Breakdown – Show Me the Money
| FY25 | ₹ Cr |
|---|---|
| Sales | 136 |
| Op Profit | 33 |
| Other Income | 9 |
| Interest | 16 |
| Depreciation | 5 |
| PBT | 20 |
| PAT | 15 |
Key Note:
Almost 25% of your bottom line = Other Income. Not ideal, but still cleaner than most small-cap realty players.
11. Peer Comparison
| Company | Sales (₹ Cr) | PAT (₹ Cr) | P/E | ROCE | ROE | CMP/BV |
|---|---|---|---|---|---|---|
| DLF | 7,994 | 1,282 | 44x | 6.5% | 11.2% | 4.8x |
| Lodha | 13,779 | 922 | 51x | 15.6% | 14.7% | 7x |
| Oberoi | 5,286 | 433 | 30x | 17.7% | 14.7% | 4.2x |
| Nila Spaces | 136 | 15 | 40x | 24.9% | 10.9% | 4.1x |
Nila offers strong ROCE for its size, but its scale doesn’t justify the PE. Retail frenzy pricing ahead?
12. Miscellaneous – Shareholding, Promoters
| Category | FY23 | FY25 |
|---|---|---|
| Promoter | 61.9% | 61.9% |
| FIIs | 2.5% | 0.04% |
| Public | 35.6% | 38.1% |
| Shareholders | 52.7k | 87.5k |
- FIIs are gone.
- Public has stormed in like a flash sale on Big Billion Day.
- Shareholder base expanded 65% in 2 years—hello operator entry?
13. EduInvesting Verdict™
Nila Spaces Ltd has managed the rare feat of turning around from literal single-digit crore revenues to ₹136 Cr topline and a decent bottom line. Its GIFT City credentials give it a spicy narrative, but the stock is already pricing in some serious future optimism.
Key Questions:
- Can they consistently generate ₹100+ Cr revenues?
- Will operating cash flows ever match accounting profits?
- And most importantly, will the land bank stop sitting idle?
Until then, this is a speculative microcap with a fancy zip code. Handle with gloves (not emotions).
Metadata
– Written by EduInvesting Research Desk | 14 July 2025
– Tags: real estate, GIFT City, Ahmedabad, turnaround, speculative, carbon neutral, microcap
