ABC Industries India Limited

Consumer Cyclical — Textile Manufacturing · NSE

₹193.90+₹1.58 (+0.82%)

DalalBaazaar Score

66 / 100

🟢 Good

Verdict

REASONABLE

Risk

Moderate

Driven by moderate debt load, micro-cap size, which brings thin liquidity.

In simple words: Reasonable but unspectacular business quality, with both sales and profits growing well. Nothing on this snapshot stands out as an immediate concern — the usual checks on business quality and management still apply.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:46 pm

Understanding the Business

Company site ↗

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

What does this company do?

ABC Industries India Limited engages in the manufacturing and sale of cotton yarns and knitted fabrics in India. It also offers cotton seed oil, mustard oil, and oil cakes.

IndustryTextile Manufacturing

SectorConsumer Cyclical

Employees370

Annual revenue₹296 Cr

How does it make money?

Turns over ₹296 Cr a year. Of every ₹100 of sales, about ₹4 reaches shareholders as profit, with ₹14 left at the operating level before interest, tax and depreciation. Each of its 370 employees supports ₹80.0 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹80.0 lakh

Who are its competitors?

The closest listed comparisons in its industry are MARUTI SUZUKI INDIA LTD., TITAN COMPANY LIMITED, TRENT LTD, AVENUE SUPERMARTS LIMITED. 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?Little sign of one

Returns on capital of 13.0% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

Peer median ROE25.9%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +76% while net margin moved +283% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+76%

Margin effect+283%

DalalBaazaar Score

66/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of -0.64 — 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

70/ 100

Good

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

Valuation

77/ 100

Cheap

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

A good business currently available at an undemanding price — the combination this framework is built to look for.

Historical Valuation

Current P/E

30.2x

3Y Median

62.9x

40 monthly readings · mean 72.4x · range 24.2x–173.4x

Sector Median

69.2x

median of 4 sector peers

🟢Current valuation is approximately 52% below its 3y median of 62.9x. 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 56% below the peer median of 69.2x.

vs. its own history

Cheap

62.9x median over 40 months · -52%

vs. sector peers

Cheap

69.2x median of 4 peers · -56%

vs. generic bands

Fair

15x–35x

EV/EBITDA

13.6x

PEG

0.34

What's Good / What's Bad

🟢 What's Going Well5

Margins are improving
EBITDA margin is up from 6.3% to 14.2% over 3 years.
Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.
Return on equity is rising
ROE has improved from 4.5% to 8.5%.
Return on capital is rising
ROCE has improved from 6.1% to 13.0%.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

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

Red Flags

3 items require attention · 1 high · 2 watch

🔴Receivables growing faster than salesFinancial
Receivables up 437% against revenue up 76% — sales are being booked faster than they are collected.
🟡Debt is increasingFinancial
Total debt is up 50% over 3 years.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 113% over 3 years — each existing share owns a smaller slice of the company.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 6.3% to 14.2%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Priced below its own history
The stock trades 52% 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 56% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

The debt load needs earnings to hold up
Debt is 3.5x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
Sales are being booked faster than collected
Receivables are up 437% against revenue up 76%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
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

1Revenue growth stays above 16% a year✓ 20.8% CAGR
Latest reported year was 51.4%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 12%✓ 14.2%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA falls below 3x✗ 3.5x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
4Interest cover stays above 3x✗ 2.7x
How much operating profit can fall before interest stops being comfortably covered.
5Free cash flow remains positive✓ ₹2 Cr
Profit that never becomes cash eventually stops being profit.

Investment Checklist

7 / 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 · 7 neutral · 0 weak

Market Cap

₹426 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

30.2x

Fair

Fairly valued against the generic band

P/B Ratio

2.78x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹6.41

Profitable

Profitable on a per-share basis

ROE

8.5%

Moderate

Moderate capital efficiency

ROCE

13.0%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.96x

Moderate

Moderate leverage

Revenue Growth (YoY)

51.4%

Healthy

Healthy top-line growth

Profit Growth (YoY)

21.5%

Healthy

Profits growing at a healthy clip

Dividend Yield

None

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

Free Cash Flow

₹2 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

8.5%

Average

Average margins

Net Margin

4.2%

Average

Average bottom-line conversion

Current Ratio

1.88

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

-0.64

Defensive

Steadier than the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

197.1 / 202.6

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

32.6

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹168 Cr	₹252 Cr	₹296 Cr	₹296 Cr	+20.8%
EBITDA	₹11 Cr	₹27 Cr	₹32 Cr	₹42 Cr	+58.2%
EBITDA Margin	6.3%	10.8%	10.9%	14.2%	—
PAT (Net Profit)	₹2 Cr	₹7 Cr	₹10 Cr	₹13 Cr	+88.9%
EPS	₹1.88	₹4.8	₹8.21	₹5.96	+46.9%
ROE	4.5%	9.8%	9.2%	8.5%	—
ROCE	6.1%	15.1%	12.9%	13.0%	—
Total Debt	₹98 Cr	₹122 Cr	₹168 Cr	₹147 Cr	+14.4%
Free Cash Flow	-₹63 Cr	-₹37 Cr	-₹67 Cr	₹2 Cr	—

🟢 Revenue has grown at 20.8% a year over 3 years.

🟢 EBITDA has grown at 58.2% a year over 3 years.

🟢 EBITDA Margin has risen from 6.3% to 14.2% over 3 years (+7.9 pts).

🟢 PAT (Net Profit) has grown at 88.9% a year over 3 years.

🟢 EPS has grown at 46.9% a year over 3 years.

🟢 ROE has risen from 4.5% to 8.5% over 3 years (+4.0 pts).

🟢 ROCE has risen from 6.1% to 13.0% over 3 years (+6.9 pts).

🔴 Total Debt has grown at 14.4% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹63 Cr to ₹2 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹313 Cr

Total Liabilities

₹160 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

₹34 Cr

Capex

-₹32 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

87.5%

Peer Comparison

Company	P/E	ROE
MARUTI SUZUKI INDIA LTD.	25.2x	13.4%
TITAN COMPANY LIMITED	68.5x	36.7%
TRENT LTD	87.2x	25.9%
AVENUE SUPERMARTS LIMITED	69.9x	12.7%

Recent News

6 general

ABC Industries India (NSEI:ABCOTS) - Stock Analysis

Simply Wall Street, 17 Oct

ABC Industries India Limited Stock (ABCOTS) - Quote NSE India S.E.

marketscreener.com, 17 Oct

ABC Industries India Limited NSE:ABCOTS Name Change Explained

Kalkine India, 15 Oct

ABCOTS: Static price chart | ABC Industries India Limited | INE08PH01015

www.marketscreener.com, 17 Oct

ABC Gas (International) Upper Circuit Today: Price, Data and Peers

Univest, 08 Oct

ABCAPITAL Approves ₹4,000 Crore Equity Infusion at ₹356.02 to Fuel Growth

Sahi, 20 May

Watch Items

Trading very close to its 52-week low — worth checking whether this reflects a temporary setback or a structural problem.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongFinancial Health · Growth

MiddlingBusiness Quality · Profitability · Valuation

WeakRisk

Points for each in the Score ↑

Attractive on both counts

A good business currently available at an undemanding price — the combination this framework exists to look for. The work left is qualitative: whether the advantage the numbers imply is one you can identify and expect to last. 1 high-severity red flag sits above this conclusion and should be read first.

2 of 5 tripwires tripped — Debt / EBITDA falls below 3x; Interest cover stays above 3x · see Key things to watch ↑