Nitta Gelatin India
Stock Snapshot
Price Performance
Vista Outlook
Basis of our Recommendation
Nitta Gelatin India's recent management commentary highlights a strategic pivot towards high-value nutraceutical and pharmaceutical applications, which is crucial for revenue growth amid a challenging market environment. The company's focus on premium products and operational efficiency aims to mitigate raw material cost volatility and global trade barriers, supporting Vista's forecast of stable profit margins despite expected revenue contraction. The agribusiness sector's improving pricing power and resilience in the agrochemical segment provide a favorable backdrop, although inflationary pressures and reliance on imports remain significant headwinds. Over the next 12-24 months, Nitta Gelatin's commitment to R&D and capacity utilization will be key opportunities for growth, while the potential impact of low-cost competition and fluctuating input prices warrant close monitoring. Overall, Vista's outlook reflects cautious sentiment, with a target price indicating limited upside potential in the current valuation context
Why We Like This Stock
- Management's focus on high-value nutraceutical and pharmaceutical applications enhances revenue potential
- Investment in R&D and operational efficiency aims to mitigate raw material cost volatility
- Improving pricing power in the agribusiness sector supports margin stability
Things To Watch Out For
- Expected revenue contraction poses challenges to overall financial performance
- Inflationary pressures and reliance on imports could squeeze margins
- Low-cost competition remains a structural risk to market share
Key Parameters
Financial Snapshot
View Technicals Analysis →| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 533 | 527 | 588 | 572 | 580 |
| Profit Before Tax (Cr.) | 117 | 101 | 134 | 130 | 132 |
| PBT Margin | 21.9% | 19.2% | 22.8% | 22.7% | 22.8% |
| Net Profit (Cr.) | 88 | 72 | 99 | 97 | 98 |
| Earnings Per Share | 95.5 | 79.4 | 108.6 | 106.6 | 108.1 |
Analyst Recommendations
No analyst recommendations available.
Company Overview
Show Company Profile
Nitta Gelatin India Limited engages in the manufacture and sale of ossein, gelatin, and collagen peptide in India and internationally. It offers wellnex collagen peptides for collagen peptide absorption, diabetes management, bones and joints, and beauty products; gelatin for pharmaceutical and edible applications; and Di Calcium Phosphate for use in poultry feed. The company provides chitosan for food, pharmaceutical, textile, agriculture, water treatment, and cosmetics industries, as well as ossein. It also exports its products. The company was formerly known as Kerala Chemicals & Proteins Limited and changed its name to Nitta Gelatin India Limited in 2008. Nitta Gelatin India Limited was incorporated in 1975 and is based in Kochi, India.