1. At a Glance – Bone Se Paisa, Literally
Nitta Gelatin India Ltd (NGIL) is that rare Indian midcap where animal bones quietly mint money while the market looks the other way. With a market cap of ₹768 Cr, CMP ₹846, and a P/E of just ~9.5x, this company is trading like it’s boring—while delivering Q3 FY26 revenue of ₹150 Cr (+11% YoY) and PAT of ₹26 Cr (+30% YoY).
ROCE at ~25%, ROE near 20%, debt at a negligible ₹21 Cr, and an interest coverage north of 90x—this balance sheet looks fitter than half the fitness influencers selling collagen on Instagram (yes, NGIL sells that too).
Exports form ~46% of revenue, promoters own a chunky 74.5%, and despite a temporary subsidiary shutdown drama, operations didn’t even limp—they jogged. If value investing had a smell, this one would oddly smell… profitable. Curious why the market still yawns? Keep reading.
2. Introduction – The Unsexy Compounder Nobody Talks About
Gelatin is not glamorous. Neither is ossein. Collagen peptides don’t trend on Twitter—unless some Bollywood star endorses them. And that’s precisely why NGIL lives in peace, compounding quietly since 1975.
This is a JV between Kerala SIDC (31.5%) and Japan’s Nitta Gelatin Inc. (43%), meaning PSU discipline meets Japanese process obsession. The result? A company that prints cash, reinvests conservatively, and doesn’t blow it on vanity acquisitions.
From loss-making years pre-2015 to ₹84–91 Cr PAT in FY24–FY25, NGIL’s turnaround is textbook but underappreciated. Margins expanded, debt collapsed, and specialty products like collagen peptides started pulling weight.
Yet the stock trades at
one-third the sector PE. Is the market missing something—or just bored? Let’s dissect the bones.
3. Business Model – WTF Do They Even Do?
Imagine a slaughterhouse’s leftovers meeting a chemistry lab and coming out as pharma-grade inputs. That’s NGIL.
Core products:
- Gelatin (edible + pharma): Capsules, desserts, medicines—boring but essential.
- Ossein & Limed Ossein: Raw material backbone.
- Di-Calcium Phosphate (DCP): Poultry feed supplement.
- Chitosan: Used in water treatment, textiles, pharma.
- Collagen Peptides (Wellnex brand): Beauty, diabetes, bone & joint health.
The magic lies in process efficiency and quality consistency, not flashy branding. Collagen peptides are the high-margin growth lever, while gelatin and DCP keep cash flowing.
Explain this to a lazy investor?
“They turn bones into pharma-grade money. Slowly. Reliably.”
4. Financials Overview – Q3 FY26 Scorecard
| Metric | Latest Qtr (Dec FY26) | YoY Qtr | Prev Qtr | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue (₹ Cr) | 150 | 135 | 138 | 11.2% | 8.7% |
| EBITDA (₹ Cr) | 38 | 27 | 26 | 40% | 46% |
| PAT (₹ Cr) | 26 | 21 | 18 | 30.4% | 44% |
| EPS (₹) | 28.16 | 21.90 | 20.30 | 28.6% | 38.7% |
Annualised EPS (Q3 rule):
Average of Q1–Q3 EPS × 4 ≈ ₹84–88 range, broadly matching TTM EPS ~₹91.
Witty takeaway: Costs behaved, margins popped, and profits said “bones ho toh strong
