ABS Marine Services Limited

Sector n/a · NSE

₹329.00−₹3.30 (−0.99%)

DalalBaazaar Score

69 / 100

🟢 Good

Verdict

REASONABLE

Risk

High

Driven by moderate debt load, negative free cash flow, micro-cap size, which brings thin liquidity.

In simple words: Strong business and financial position, with both sales and profits growing well. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:49 pm

Understanding the Business

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

How does it make money?

Turns over ₹319 Cr a year. Of every ₹100 of sales, about ₹25 reaches shareholders as profit, with ₹46 left at the operating level before interest, tax and depreciation.

What is its competitive advantage?Some evidence

ROCE of 17.1% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

What has been driving growth?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved +186% while net margin moved +194% 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+186%

Margin effect+194%

DalalBaazaar Score

69/ 100

Good

Weighted across six categories. Every point is explained below.

✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ Profits have swung sharply from year to year — earnings are hard to forecast
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

79/ 100

Good

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

Valuation

88/ 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.

vs. its own history

Not enough price and earnings history

vs. sector peers

Not enough peers with a usable P/E

vs. generic bands

No P/E available

EV/EBITDA

7.7x

PEG

—

What's Good / What's Bad

🟢 What's Going Well4

Margins are improving
EBITDA margin is up from 25.9% to 46.5% over 3 years.
Return on equity is rising
ROE has improved from 10.2% to 25.7%.
Return on capital is rising
ROCE has improved from 12.6% to 17.1%.
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

4 items require attention · 3 high · 1 watch

🔴Debt has risen sharplyFinancial
Total debt is up 675% over 3 years, from ₹49 Cr to ₹377 Cr.
🔴Free cash flow negative for 4 yearsFinancial
The business has not covered its capital spending from operations for several years running, which has to be funded externally.
🔴Receivables growing faster than salesFinancial
Receivables up 307% against revenue up 186% — sales are being booked faster than they are collected.
🟡Interest coverage is deterioratingFinancial
Cover has fallen from 9.0x to 4.4x.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 25.9% to 46.5%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
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?

Sales are being booked faster than collected
Receivables are up 307% against revenue up 186%. 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.
Several serious flags at once
3 high-severity checks triggered. Individually each has an explanation; together they raise the chance that something structural is wrong rather than a one-off.

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

1Revenue growth stays above 31% a year✓ 41.9% CAGR
Latest reported year was 77.4%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 44%✓ 46.5%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA stays below 2x✗ 2.5x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
4Free cash flow remains positive✗ -₹187 Cr
Profit that never becomes cash eventually stops being profit.
5ROCE stays above 14%✓ 17.1%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

7 / 9 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
✓ Short-term technical trend isn't bearish

Price history

Quick Metrics

4 good · 6 neutral · 1 weak

Market Cap

₹808 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

Not available

No data

Source didn't return this field

P/B Ratio

Not available

No data

Source didn't return this field

EPS (TTM)

Not available

No data

Source didn't return this field

ROE

25.7%

Strong

Strong capital efficiency

ROCE

17.1%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

1.21x

Moderate

Moderate leverage

Revenue Growth (YoY)

77.4%

Healthy

Healthy top-line growth

Profit Growth (YoY)

194.8%

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

-₹187 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Gross Margin

41.7%

Proxy

Operating margin unavailable — showing gross margin instead

Net Margin

25.1%

Good

Strong bottom-line conversion

Current Ratio

1.92

Comfortable

Healthy short-term liquidity

Technical Snapshot

SMA 20 / SMA 50

312.8 / 288.9

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

42.4

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹112 Cr	₹135 Cr	₹180 Cr	₹319 Cr	+41.9%
EBITDA	₹29 Cr	₹45 Cr	₹54 Cr	₹148 Cr	+72.6%
EBITDA Margin	25.9%	33.3%	29.8%	46.5%	—
PAT (Net Profit)	₹10 Cr	₹24 Cr	₹27 Cr	₹80 Cr	+103.3%
EPS	₹3.88	₹9.61	₹11.44	—	—
ROE	10.2%	20.1%	11.8%	25.7%	—
ROCE	12.6%	19.7%	10.8%	17.1%	—
Total Debt	₹49 Cr	₹46 Cr	₹178 Cr	₹377 Cr	+97.9%
Free Cash Flow	-₹3 Cr	-₹2 Cr	-₹69 Cr	-₹187 Cr	—

🟢 Revenue has grown at 41.9% a year over 3 years.

🟢 EBITDA has grown at 72.6% a year over 3 years.

🟢 EBITDA Margin has risen from 25.9% to 46.5% over 3 years (+20.6 pts).

🟢 PAT (Net Profit) has grown at 103.3% a year over 3 years.

🟢 ROE has risen from 10.2% to 25.7% over 3 years (+15.5 pts).

🟢 ROCE has risen from 12.6% to 17.1% over 3 years (+4.5 pts).

🔴 Total Debt has grown at 97.9% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹742 Cr

Total Liabilities

₹420 Cr

Cash & Equivalents

₹48 Cr

Operating Cash Flow

₹168 Cr

Capex

-₹355 Cr

Recent News

1 positive2 mixed3 general

ABS Marine Services Share Price News on Today’s Decline

Univest, 01 OctPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

ABS Marine Services' (NSE:ABSMARINE) Promising Earnings May Rest On Soft Foundations

Simply Wall Street, 29 MayResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

ABS MARINE SERVICES LTD Share Price - Live NSE: ABSMARINE Stock Price & Chart

Upstox, 05 May

ABS Marine Services Ltd Peer Comparison – Compare with Others

Value Research, 30 Aug

ABS Marine Services Reports Strong H2FY26 Performance; Revenue Rises 83%

Dalal Street Investment Journal, 27 AugResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

Compare with

Equitymaster, 07 Oct

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.
Sector/industry classification unavailable — verify manually for peer comparison.
3 metrics couldn't be retrieved for this stock — this is more common for smaller or thinly-covered listings.

DalalBaazaar Thesis

StrongBusiness Quality · Growth · Profitability

MiddlingFinancial Health · 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. 3 high-severity red flags sit above this conclusion and should be read first.

2 of 5 tripwires tripped — Debt / EBITDA stays below 2x; Free cash flow remains positive · see Key things to watch ↑