Art Nirman Ltd (ARTNIRMAN) AI Stock Analysis

Art Nirman Ltd

(NSE:ARTNIRMAN)

Select Model

Rating:39Underperform

Price Target:INR 37.00▲(0.54% Upside)

Action:downgraded

Date:10/16/26

The overall score is very low, driven primarily by severe financial weaknesses including massive cash burn and high leverage, which overshadow top-line growth. This is compounded by a bearish technical trend with the stock trading below all key moving averages and an extremely high P/E ratio that is unsupported by earnings.

Positive Factors

Revenue ReboundThe strong 2026 revenue rebound indicates renewed project activity and improved demand for the company’s construction and development services. If execution is maintained, a larger revenue base can support operating scale, strengthen tender competitiveness, and provide a foundation for future earnings recovery.

Negative Factors

Weak Cash ConversionPersistently negative operating and free cash flow means reported profits are not translating into internally generated liquidity. This can force greater reliance on external funding, restrict reinvestment flexibility, and leave the company more exposed when project working-capital needs rise.

Art Nirman Ltd (ARTNIRMAN) vs. iShares MSCI India ETF (INDA)

Market Cap: INR 953.32M
Dividend Yield: ―
Average Volume (3M): 3,388
Price to Earnings (P/E): 233.5
Beta (1Y): 1.63
Revenue Growth: 44.75%
EPS Growth: -73.78%
Country: India
Employees: 20
Sector: General
Sector Strength: 55
Industry: Real Estate - Development

Art Nirman Ltd Business Overview & Revenue Model

Company Description

Art Nirman Limited engages in the real estate development and allied activities in India. The company is involved in the construction and development of residential, commercial, and plotting projects. It also engages in the construction and developme...

How the Company Makes Money

Art Nirman Ltd makes money by earning revenue from construction and engineering contracts. Its primary revenue stream is contract-based income tied to delivering projects (e.g., civil/building construction and related works), typically recognized bas...

Art Nirman Ltd Financial Statement Overview

Summary

Financial performance is weak. While revenue growth is strong and gross margins are high, the bottom line is constrained by thin net margins (1.6%), high leverage (debt-to-equity of 2.0), and deeply negative operating and free cash flows (INR -511M), indicating significant cash burn and financial risk.

Income Statement

38Negative

Balance Sheet

25Negative

Cash Flow

15Very Negative

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	338.51M	332.36M	273.85M	342.90M	197.17M	366.51M
Gross Profit	532.49M	506.12M	280.35M	145.32M	106.87M	2.77M
EBITDA	49.48M	49.54M	36.75M	21.51M	9.97M	-98.43M
Net Income	3.97M	5.20M	19.92M	11.79M	1.12M	-109.97M
Balance Sheet
Total Assets	0	1.42B	688.17M	531.76M	518.87M	449.78M
Cash, Cash Equivalents and Short-Term Investments	69.89M	69.89M	37.57M	43.51M	1.96M	51.52M
Total Debt	0	729.63M	180.56M	29.22M	25.26M	2.27M
Total Liabilities	-372.40M	1.05B	315.31M	178.82M	177.72M	109.75M
Stockholders Equity	372.40M	372.40M	372.86M	352.94M	341.15M	340.03M
Cash Flow
Free Cash Flow	0	-511.57M	-154.84M	15.71M	-73.10M	92.86M
Operating Cash Flow	0	-511.27M	-154.52M	15.85M	-72.98M	93.01M
Investing Cash Flow	0	-12.79M	-4.19M	-11.30M	2.50M	-646.00K
Financing Cash Flow	0	549.08M	134.52M	-1.75M	20.92M	-51.75M

Art Nirman Ltd Technical Analysis

Technical Analysis SentimentNegative

Last Price36.80

Price Trends

50DMA39.60Negative

100DMA40.01Negative

200DMA40.72Negative

Market Momentum

MACD-0.69Positive

RSI44.21Neutral

STOCH48.99Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:ARTNIRMAN, the sentiment is Negative. The current price of 36.80 is below the 20-day moving average (MA) of 38.82, below the 50-day MA of 39.60, and below the 200-day MA of 40.72, indicating a bearish trend. The MACD of -0.69 indicates Positive momentum. The RSI at 44.21 is Neutral, neither overbought nor oversold. The STOCH value of 48.99 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:ARTNIRMAN.

Art Nirman Ltd Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

IN:ARTNIRMAN against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IN:AMJLAND	68Neutral	INR 1.46B	9.64	―	0.56%	-11.14%	-29.81%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
IN:UMIYA.MRO	55Neutral	INR 1.65B	44.77	―	―	21.26%	-90.63%
IN:PARSVNATH	54Neutral	INR 1.31B	-0.36	―	―	-5.41%	22.14%
IN:PRAENG	40Underperform	INR 1.20B	-6.56	―	―	-57.64%	30.21%
IN:ARTNIRMAN	39Underperform	INR 918.38M	233.50	―	―	44.75%	-73.78%

* General Sector Average

Performance Comparison

IN:ARTNIRMAN and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
IN:ARTNIRMAN	Art Nirman Ltd	36.80	-19.99	-35.20%
IN:AMJLAND	AMJ Land Holdings Ltd.	35.50	-17.24	-32.68%
IN:UMIYA.MRO	Umiya Buildcon Limited	88.54	-4.55	-4.89%
IN:PARSVNATH	Parsvnath Developers Limited	3.00	-14.01	-82.36%
IN:PODDARHOUS	Poddar Housing & Development Ltd.	49.21	0.00	0.00%
IN:PRAENG	Prajay Engineers Syndicate Ltd	17.11	-14.35	-45.61%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Oct 16, 2026

Art Nirman Ltd AI Stock Analysis