Long operational track record and experienced management
NIFIL was incorporated in 1955 and has a long operational track record of more than six decades in the cast iron and ductile iron manufacturing business. The promoters, Mr. Girish Kumar Madhogaria, Mr. Sugam Madhogaria and Mrs. Pushpa Madhogaria manages the operations of the company. The company has a long-standing presence in cast-iron and ductile iron casting segment. NIFIL serves the real estate sector, supplying key clients such as L&T and Godrej, as well as airport projects across India. The company has a broad market presence, exporting to 35 countries, including the USA, Canada, and various European countries. Acuite believes that the long track of operations and the extensive experience will continue to benefit the company going forward.

­Increase in revenue and improving margins in FY25 (Prov.)
The company achieved an operating income of Rs.189.09 Cr in FY25 (Prov.) as against Rs. 171.81 Cr. in FY24. The increase in revenue was because of marginal increase in volume sales. The order in hand mainly comprises export orders of ~Rs.40.00 Cr.  and domestic orders of ~Rs.4.00 Cr. as of June 2025 which will be executed within 10 weeks with a rolling pipeline of new orders. The EBITDA margins stood at 16.50 percent in FY25 (Prov.) as against 13.43 percent in FY24. The increase was due to reductions in raw material costs. The PAT Margin stood at 8.79 percent in FY25 (Prov.) as against 5.99 percent in FY24 due to reduced interest costs. Acuite believes that the scale of operations will improve over the medium term backed by order flow and expansion plans.

Healthy Financial Risk Profile
The company has a healthy financial risk profile marked by increase in net worth, improved gearing ratio and healthy debt protection metrics. The tangible net worth of the company stood at Rs.78.29 Cr. in FY25 (Prov.) as against Rs. 61.68 Cr. in FY24 due to accretion of reserves. The gearing stood below unity at 0.65 times in FY25 (Prov.) as against 0.92 times in FY24. The unsecured loans from body corporate stood at Rs.11.63 Cr. in FY25 (Prov.) as against Rs.12.98 Cr. in FY24. These are interest bearing at a rate of 9% to 12% but company has a plan to refund these by FY27. TOL/TNW ratio stood at 0.81 times in FY25 (Prov.) as against 1.03 times in FY24. The interest coverage ratio and debt service coverage ratio stood at 8.47 times and 6.59 times respectively as of March 31, 2025 (Prov.). Acuite believes that the financial risk profile remains healthy supported by healthy cash accruals even though the company is expected to incur capex.

­Intensive working capital cycle 
The working capital-intensive nature of operations of the company is marked by Gross Current Assets (GCA) of 166 days for FY25 (Prov.) as against 172 days for FY2024 on account of receivables days followed by inventory days. The debtor days of the company stood at 87 days for FY25 (Prov.) as against 86 days for FY2024. The credit terms on an average are ~2months. The credit terms with their export customers is on average of 90 days. Further, the inventory days of the company stood at 60 days in FY2025 (Prov.) as against 74 days in FY2024. The company stores 4 to 7 weeks of work in progress goods and 30 days of raw materials for any kind of buffer. Against this, the company has minimal dependence on its suppliers to support the working capital; creditors stood at 14 days for FY2025(Prov.) as against 7 days for FY2024. NIFIL make advance payments for more than 50% of the purchases of  pig iron. Acuite believes that working capital cycle will remain on similar lines over the medium term.