Abate AS Industries Limited

Financial Services — Capital Markets · BSE

₹7.60−₹0.30 (−3.80%)

DalalBaazaar Score

65 / 100

🟢 Good

Verdict

NEUTRAL

Risk

Moderate

Driven by micro-cap size, which brings thin liquidity, falling profits.

In simple words: The business is earning a fairly low return on the money invested in it, but sales are shrinking. The direction of profits is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:50 pm

Understanding the Business

Company site ↗

The 60-second version of Abate AS Industries Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Abate AS Industries Limited provides eye healthcare services in India. The company offers eye care services through hospitals; and eyewear and vision solutions through optical outlet.

IndustryCapital Markets

SectorFinancial Services

Employees1

Annual revenue₹159 Cr

How does it make money?

Turns over ₹159 Cr a year. Of every ₹100 of sales, about ₹5 reaches shareholders as profit, with ₹10 left at the operating level before interest, tax and depreciation. Each of its 1 employees supports ₹159.41 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹159.41 Cr

Who are its competitors?

The closest listed comparisons in its industry are BAJAJ FINANCE LIMITED, HDFC LIFE INS CO LTD, SBI LIFE INSURANCE CO LTD. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Not assessable from these ratios

For a lender, returns on capital are shaped by leverage and funding cost rather than by pricing power, so the usual financial signature of an advantage does not apply. Judge this one on deposit franchise, cost of funds and asset quality — none of which are in this data.

Peer median ROE13.7%

DalalBaazaar Score

65/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of -0.02 — historically steadier than the index
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ Profits have swung sharply from year to year — earnings are hard to forecast

Quality vs. Valuation

Company Quality

63/ 100

Average

How good the business is, ignoring the share price entirely.

Valuation

83/ 100

Cheap

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

12.9x

1.3Y Median

37.6x

16 monthly readings · mean 37.4x · range 14.1x–59.6x

Sector Median

58.4x

median of 3 sector peers

🟢Current valuation is approximately 66% below its 1.3y median of 37.6x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

🟢Against its sector it trades 78% below the peer median of 58.4x.

vs. its own history

Cheap

37.6x median over 16 months · -66%

vs. sector peers

Cheap

58.4x median of 3 peers · -78%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

8.2x

PEG

—

What's Good / What's Bad

🟢 What's Going Well2

Return on equity is rising
ROE has improved from -3887.2% to 5.0%.
Return on capital is rising
ROCE has improved from -3886.7% to 6.6%.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

1 item require attention · 1 watch

🟡Shareholders have been dilutedOwnership
Shares outstanding are up 1471% over 3 years — each existing share owns a smaller slice of the company.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Priced below its own history
The stock trades 66% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Cheaper than its peers
It trades 78% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.

🔴 Bear CaseWhat could go wrong?

Earnings are hard to forecast
Profit has swung sharply from year to year, so any single year — good or bad — is a weak guide to the next. Cyclical earnings deserve lower multiples for that reason.
Size brings its own risk
Micro Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1EBITDA margin holds above 8%✓ 9.6%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Return on equity stays above 8%✗ 5.0%
For a lender this is the cleanest single read on whether the book is being grown profitably.
3Valuation vs its own median of 37.6x✓ 12.9x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

4 / 11 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✗ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✗ Revenue growing year-over-year
✗ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

4 good · 2 neutral · 5 weak

Market Cap

₹120 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

12.9x

Cheap

Cheap against the generic band

P/B Ratio

0.99x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹0.59

Profitable

Profitable on a per-share basis

ROE

5.0%

Weak

Weak capital efficiency

ROCE

6.6%

Weak

Low return on total capital employed

Debt/Equity

4.79x

High

High leverage

Revenue Growth (YoY)

-44.4%

Shrinking

Sales are contracting

Profit Growth (YoY)

-57.9%

Falling

Profits are shrinking

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

₹3 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

11.4%

Average

Average margins

Net Margin

8.7%

Average

Average bottom-line conversion

Current Ratio

2.73

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

-0.02

Defensive

Steadier than the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

7.9 / 8.6

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

36.0

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	—	—	₹14 Cr	₹159 Cr	—
EBITDA	-₹0 Cr	-₹1 Cr	₹2 Cr	₹15 Cr	—
EBITDA Margin	—	—	12.1%	9.6%	—
PAT (Net Profit)	-₹0 Cr	-₹1 Cr	₹1 Cr	₹9 Cr	—
EPS	₹-0.36	₹-1.82	₹0.3	₹0.54	—
ROE	-3887.2%	—	0.4%	5.0%	—
ROCE	-3886.7%	—	0.6%	6.6%	—
Total Debt	₹1 Cr	₹1 Cr	₹11 Cr	₹10 Cr	+149.4%
Free Cash Flow	-₹0 Cr	-₹1 Cr	-₹1 Cr	₹3 Cr	—

🟢 EBITDA has turned positive, from -₹0 Cr to ₹15 Cr.

🔴 EBITDA Margin has fallen from 12.1% to 9.6% over 3 years (-2.5 pts).

🟢 PAT (Net Profit) has turned positive, from -₹0 Cr to ₹9 Cr.

🟢 EPS has turned positive, from ₹-0.36 to ₹0.54.

🟢 ROE has risen from -3887.2% to 5.0% over 3 years (+3892.1 pts).

🟢 ROCE has risen from -3886.7% to 6.6% over 3 years (+3893.3 pts).

🔴 Total Debt has grown at 149.4% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹0 Cr to ₹3 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹223 Cr

Total Liabilities

₹24 Cr

Cash & Equivalents

₹4 Cr

Operating Cash Flow

₹6 Cr

Capex

-₹3 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

71.1%

Peer Comparison

Company	P/E	ROE
BAJAJ FINANCE LIMITED	30.2x	17.8%
HDFC LIFE INS CO LTD	58.4x	11.3%
SBI LIFE INSURANCE CO LTD	63.9x	13.7%

Recent News

1 mixed1 negative4 general

ABATE AS INDUSTRIES LIMITED Share Price

Upstox, 16 Oct

ABATEAS Share Price Rise: Price Action and Fundamentals

Univest, 15 OctPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Abate As Industries Q1FY26 net profit falls 22% to ₹224.34 lakh

scanx.trade, 13 AugResults

🔴Potentially negativeReported deterioration, which feeds the growth and margin inputs on this page directly.

Abate AS Industries Ltd. Key Financial Ratios – Valuation, Profitability & More

Value Research, 31 Aug

Markets Rally, But Abate As Industries Ltd Sinks to 52-Week Low in Stock-Specific Sell-Off

MarketsMojo, 08 Oct

Abate AS Industries Share Price and Fundamental Analysis

Univest, 05 Oct

Watch Items

Revenue growth is negative (-44.4%) on the latest reported period — check if this is one-off or a trend.
Trading very close to its 52-week low — worth checking whether this reflects a temporary setback or a structural problem.
This is a financial-sector business: borrowing is its raw material, not leverage in the usual sense. Debt/Equity and ROCE here aren't comparable to a manufacturer's — read them alongside NIM, GNPA and capital adequacy from the company's own disclosures.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongFinancial Health · Valuation

MiddlingBusiness Quality · Growth · Profitability

WeakRisk

Points for each in the Score ↑

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you.

1 of 3 tripwires tripped — Return on equity stays above 8% · see Key things to watch ↑