National E Repository Limited (NERL), promoted by NCDEX, NABARD, ICICI Bank and LIC, operates as one of India’s licensed electronic negotiable warehouse receipt (e-NWR) repositories. As India modernises its agricultural supply chain and moves toward full digital integration of commodities, NERL plays a central role in enabling secure storage, pledging and financing of agri commodities. This makes its long-term relevance undeniable, but the question remains: is NERL’s unlisted share a strong investment today?
1. Understanding the Business Strength
NERL functions in a highly specialised niche in the digitisation of warehouse receipts. Its platform is integrated with more than 2,000 warehouses, banks and commodity ecosystem participants. As government initiatives like e-NAM, agri financing digitalisation and warehousing reforms expand, the structural demand for e-NWRs is expected to rise.
This places NERL at the core of India’s shift toward transparency in commodity markets.
2. Financial Performance: Weak but Improving
NERL’s recent financials show consistent revenue growth but continued losses. The available data indicates:
| Financial Metric | FY23 | FY24 | FY25 |
| Revenue | Rs 9.6 Cr | Rs 10.8 Cr | Rs 12 Cr |
| EBITDA | Rs -2.2 Cr | Rs -2.7 Cr | Rs -3.2 Cr |
| PAT | Rs -5.5 Cr | Rs -5 Cr | Rs -4 Cr |
Losses persist, but net loss has narrowed, and revenue has grown about 25 % over three years.
Return ratios remain weak:
- ROE: -9 %
- ROA: -7.1 %
- Working Capital Return: -5.6 %
These indicate that NERL is still in a heavy investment phase rather than profit generation.
3. Valuation: Moderately Priced but Not Undervalued
At a market cap of around Rs 502 crore and a share price close to Rs 62, NERL trades at:
- P/B of 10.9, which is high relative to its financial performance
- Negative P/E due to ongoing losses
This suggests that the current valuation reflects future potential rather than present performance.
4. Growth Drivers Ahead
Despite weak profitability, NERL benefits from:
- A government-supported, high-entry-barrier ecosystem
- Expanding digital agri financing
- Strong promoter backing
- Increasing warehouse integrations
These structural forces support long-term growth potential.
Should You Invest
NERL unlisted shares are suited for patient, long-horizon investors who believe in India’s agricultural digital transformation. It may not appeal to investors seeking near-term profitability or stable financial ratios.
In summary, NERL is a strategic and high-potential business that is still loss-making. Its unlisted shares represent a long-duration bet on India’s agri ecosystem transformation rather than a short-term return opportunity.
