NIKITA GREENTECH RECYCLING Ltd. (NIKITA)
SME CapIndustrials stocks · SME cap · NSE
Nikita Papers Limited is a leading Indian manufacturer of premium Kraft paper, utilizing recycled paper and municipal waste. With 35+ years of experience, the company operates an integrated sustainability approach, recycling 1,16,915 MT of waste paper and 500-600 tons of municipal waste daily. It has an installed capacity of 1,33,000 MTPA at its UP Shamli plant.
One read, four checks
75+ is strong, 60-74 is usable, 45-59 is mixed, and below 45 needs caution. These are research lenses, not buy/sell instructions.
Weak fundamentals, management trust needs verification, price trend argues for patience, and recent execution is weak.
Fundamental lens: valuation, quality, growth, balance sheet, and cash flow.
low confidence · 0/0 claims checked
Timing lens: price trend and sector relative strength.
Rolling lens: recent quarterly delivery, not the latest single-result score.
Quarter ended 31 Mar 2026
Bad · 0/100Rev -4% YoY · PAT -62% YoY · margin compression
| Metric | This quarter | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹172 Cr | -3.9% | -3.4% |
| EBITDA | ₹12 Cr | -50.0% | -25.0% |
| Operating margin | 7.0% | -500 bps | -200 bps |
| PAT | ₹5 Cr | -61.5% | -16.7% |
| PAT margin | 2.9% | -366 bps | -46 bps |
NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.
Business & thesis
Growth engines, tailwinds/headwinds, and risk radar from management commentary
Business & thesis
Growth engines, tailwinds/headwinds, and risk radar from management commentary
Where growth can come from, and what can break the case
Nikita Papers delivered solid FY25 performance with revenue up 9%, EBITDA up 24%, and PAT up 11%. Capacity utilization reached 82%, and ROE remained robust at 22%.
The company's FY25 results demonstrate consistent growth in key financial metrics and operational efficiency. Strategic plans for expanding waste-to-energy capacity and product diversification, coupled with favorable government policies promoting eco-friendly packaging, position Nikita for continued sustainable growth. The high net debt ratio warrants monitoring.
Revenue by Product (FY25)
Latest issuer-disclosed distribution across 5 reported categories.
Waste-to-Energy Expansion
Plans to expand renewable energy portfolio with a 9 MW Waste-to-Energy plant, aiming for 100% green energy and self-sufficiency within two years.
Government-Driven Recycling Growth
Plastic Management Rules 2016 & Amendments and ban on non-recyclable plastics create strong demand for eco-friendly alternatives like kraft paper.
Expanding Kraft Paper Market
Indian kraft paper market projected to grow from 7.67 million tonnes in FY 2023 to 12.4 million tonnes by FY 2030, registering a CAGR of 10%.
Diversified Product Offerings
Focused on broadening offerings through development of advanced Kraft paper grades and customized solutions for varied customer needs.
9 MW Waste-to-Energy Plant
Plans to invest an additional ₹50 Cr. over the next 15–18 months to establish a 9 MW Waste-to-Energy plant, aiming for 100% energy self-sufficiency.
Favorable Regulatory Trends
Government policies like Plastic Management Rules and ban on multi-layered plastics directly benefit kraft paper manufacturers.
EPR Credit Revenue Stream
Paper-based industries meeting EPR norms can generate and sell EPR credits, creating a new revenue stream.
Growing Packaging Demand
Demand from FMCG, Food & Beverage, and Pharmaceuticals sectors is driving the need for recyclable and biodegradable packaging.
High Net Debt Ratio
The Net Debt to Equity ratio for FY25 stands at 2.4x.
General Economic Conditions
Risks and uncertainties regarding fiscal policy, competition, inflationary pressures, and general economic conditions could affect demand/supply and price.
Management accountability
What management said, and what results must prove
Management accountability
What management said, and what results must prove
What management said, and what results must prove
Issuer guidance and extracted claims are tracked against later reported outcomes. Treat these as management statements, not IndiaPulse forecasts.
The presentation provides both full-year (FY25) and half-year (H2 FY25) financial performance. Annual figures are crucial for assessing overall business health and long-term trends, while H2 figures offer insight into recent sequential momentum and execution.
Capacity Utilization
Capacity utilization for FY25 is 82%. Papers manufactured = 1,08,754 MT.
EBITDA Margin
EBITDA Margin for FY25 was 13.5%, up from 11.9% in FY24.
PAT Margin
PAT Margin for FY25 was 6.2%, up from 6.1% in FY24.
Net Debt to Equity
Net Debt to Equity ratio for FY25 was 2.4x, up from 2.2x in FY24.
Achieve Energy Self-Sufficiency
Aims for 100% energy self-reliance within two years by expanding Waste-to-Energy capacity using IPO proceeds.
Market Presence & Product Diversification
Strengthening market presence by entering B2C, expanding into new regions, promoting specialty paper grades, and broadening product range.
Supply Chain Optimization
Supply chain optimization in progress, leveraging technology and simplified procurement to improve efficiency and reduce costs.
Long-term Sustainable Growth
Nikita is well-positioned for long-term, sustainable growth backed by industry experience, captive power usage, and strategic expansion.
Numbers and claims to verify in the next filings
| Checkpoint | Current evidence | What to verify next |
|---|---|---|
| 9 MW Waste-to-Energy Plant Commissioning | ₹50 Cr investment planned over 15-18 months. | Timely commissioning and ramp-up of the new 9 MW Waste-to-Energy plant and progress towards 100% energy self-sufficiency. |
| Net Debt to Equity Ratio | 2.4x in FY25. | Trends in the net debt to equity ratio, especially with planned capex, to ensure financial leverage remains manageable. |
| EPR Credits Revenue Growth | ₹5.29 Cr in FY25 (1.4% of revenue). | Growth in EPR credits revenue as regulatory tailwinds strengthen and the company leverages this new stream. |
Verification checkpoints are IndiaPulse research interpretation, not investment advice.
Trend score and candlestick chart
35Bearishfull bear SMA stack · SMA20 -4.9% / mo · MACD + · near 52W low
Technical chart
NIKITAdaily · 1Y · AUTO-38.6%Daily technical trend read
Mixed signalsSignals are conflicting — long-term trend down. RSI 43. Wait for confirmation.
- Price < SMA20 < SMA50 < SMA200 — full bearish stack.
- SMA20 falling (~5.2% over last month) — short-term momentum negative.
- RSI(14) at 43 — rising, no extreme reading.
- MACD above signal but histogram contracting — bullish momentum cooling.
- 54% off 52W high · 8% above 52W low.
Mechanical read from the price + indicator series above. Not a recommendation — technical setups can reverse without warning, especially around earnings and macro events.
Valuation & score drivers
U-Score 41 · WATCHLIST · pillar breakdown, sector model, fair-value anchor
Valuation & score drivers
U-Score 41 · WATCHLIST · pillar breakdown, sector model, fair-value anchor
Fundamental score breakdown
WATCHLISTWhy this score?
Top U-Score contributors and drags from the latest stored fundamentals.
Positive drivers
- Fair-value margin of safety is positive at 59.5%.
- Growth contributes 18/25 to the score.
- Valuation contributes 21/30 to the score.
Main drags
- Penalty bucket subtracts 7 points.
- Quality is weaker at 0/20; verify the latest quarterly trend.
- Cash flow is weaker at 1/10; verify the latest quarterly trend.
Blended valuation: PE, EV/EBITDA, FCF yield, and balance-sheet checks
For this sector, IndiaPulse uses a blended lens rather than relying on a single valuation ratio.
Stored run vs live recompute
This shows the stored score trend when snapshots exist, and also compares the latest stored nightly score with a live recompute from current fundamentals and price.
Score history
12 stored score snapshots. Latest stored move: +0 points.
Factor attribution
Modelled fair value
Trust score
Does management behaviour match later outcomes? Claim delivery, forensic breakdown, evidence depth
Trust score
Does management behaviour match later outcomes? Claim delivery, forensic breakdown, evidence depth
Trust asks: does management behaviour match later outcomes? Higher is better, but confidence and evidence depth matter as much as the number.
Weak Trust: Claim history is still being built. It ranks around the 9th percentile of the scored universe and 7th percentile within Industrials. Main check: balance sheet trust is weak at 39/100.
Mixed Trust Lite: Promoter holding is 59%. Key concern: Only 1 years of positive FCF.
Management or financial behaviour needs caution. Demand stronger valuation compensation.
overall median 67 · Industrials: 7th pctile, median 68 · SME: 9th pctile, median 64
2 documents have extracted text, but claim history is not strong enough yet.
0 claims extracted · No contradicted claim yet
How to read this Trust Score
Weak Trust · low confidenceRead Trust alongside U-Score, result consistency, and technical trend. A cheap stock with weak Trust needs a larger margin of safety; a high Trust score does not make an expensive stock attractive by itself.
Forensic breakdown
Read low sub-scores as due-diligence warnings, not automatic sell signals.
Trust positives
- ▸Promoter holding is 59%.
- ▸Promoter pledge is zero.
Trust risks
- ▸Only 1 years of positive FCF.
- ▸Debt/equity is 1.32.
- ▸Interest coverage is 1.6x.
- ▸ROE is low at 7.9%.
Trust Lite uses financial behaviour only. Prefer claim-tested Trust when enough concall claims have later outcomes.
Financials
Full fundamentals table and 10-year revenue / profit / ROE history
Financials
Full fundamentals table and 10-year revenue / profit / ROE history
Fundamentals
Valuation
- P/E
- 16.50
- P/B
- 1.03
- EV/EBITDA
- 11.38
- Market Cap
- 184.00Cr
Profitability
- ROE
- 7.88%
- ROCE
- 9.29%
- ROA
- 2.24%
- Dividend Y
- —
Growth (CAGR)
- Revenue 5Y
- 24.00%
- EPS 5Y
- 30.00%
- Revenue 3Y
- -4.00%
- EPS 3Y
- 9.00%
Balance Sheet
- Debt/Equity
- 1.32
- Interest Coverage
- 1.56×
- Altman Z
- 1.83
- Book Value
- 72.50
Cash Flow
- FCF Yield
- —
- FCF Positive Y
- 1/5
- OCF
- 19.00 Cr
- EPS TTM
- 4.52
Shareholding
- Promoter Hold
- 58.95%
- Promoter Pledge
- 0.00%
- Momentum 52W
- 8%
Financial History
Updated 5/9/2026
Revenue
₹ CrNet Profit
₹ CrReturn on Equity
%Peers
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Peers
Business-comparable names in Industrials, ranked by similarity
Peers
Business-comparable peers in Industrials — ranked by industry, sub-sector, theme-tag overlap, market cap, and U-Score similarity. Green cells mark the best available peer metric in this table.