Ace Men Engg Works Limited

Basic Materials — Other Industrial Metals & Mining · BSE

₹109.80−₹2.50 (−2.23%)

DalalBaazaar Score

48 / 100

🟡 Moderate

Verdict

CAUTION

Risk

High

Driven by negative free cash flow, micro-cap size, which brings thin liquidity, a very high earnings multiple, which leaves little margin for disappointment.

In simple words: The business is earning a fairly low return on the money invested in it, though profits are falling even as sales grow. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:58 pm

Understanding the Business

Company site ↗

The 60-second version of Ace Men Engg Works Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Ace Men Engg Works Limited operates in the aviation business. The company was incorporated in 1980 and is based in Ahmedabad, India.

IndustryOther Industrial Metals & Mining

SectorBasic Materials

Employees9

Annual revenue₹11 Cr

How does it make money?

Turns over ₹11 Cr a year. Of every ₹100 of sales, about ₹2 reaches shareholders as profit, with ₹4 left at the operating level before interest, tax and depreciation. Each of its 9 employees supports ₹1.21 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹1.21 Cr

Who are its competitors?

The closest listed comparisons in its industry are HINDALCO INDUSTRIES LTD, VEDANTA LIMITED, TATA STEEL 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 0.6% 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 ROE12.0%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +43% while net margin moved +327% 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+43%

Margin effect+327%

DalalBaazaar Score

48/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ ROE of 0.2% is weak

Quality vs. Valuation

Company Quality

50/ 100

Average

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

Valuation

28/ 100

Expensive

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

422.3x

3Y Median

338.7x

40 monthly readings · mean 396.6x · range 207.6x–655.6x

Sector Median

12.3x

median of 3 sector peers

⚠️Current valuation is approximately 25% above its 3y median of 338.7x. Paying more than usual needs a reason — faster growth, a better balance sheet, or a re-rating you believe in.

⚠️Against its sector it trades 3328% above the peer median of 12.3x.

vs. its own history

Expensive

338.7x median over 40 months · +25%

vs. sector peers

Expensive

12.3x median of 3 peers · +3328%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

398.1x

PEG

5.09

What's Good / What's Bad

🟢 What's Going Well2

Margins are improving
EBITDA margin is up from 0.5% to 3.6% over 3 years.
Very low debt
Debt/Equity of 0.19x leaves the balance sheet with plenty of headroom.

🔴 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

🔴Profit up while operating cash flow fallsFinancial
Reported profit rose but cash generated by operations declined — worth checking whether earnings are being supported by non-cash items or working capital.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹6 Cr in the latest year.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 317% 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 0.5% to 3.6%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.

🔴 Bear CaseWhat could go wrong?

The debt load needs earnings to hold up
Debt is 32.6x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
The price already assumes success
The stock trades 25% above its own median multiple. At this level the business has to deliver just to stand still, and a stumble is repriced twice — lower earnings on a lower multiple.
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 10% a year✓ 12.8% CAGR
Latest reported year was 8623.5%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 2%✓ 3.6%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA falls below 3x✗ 32.6x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
4Free cash flow remains positive✗ -₹6 Cr
Profit that never becomes cash eventually stops being profit.
5Interest cover stays above 3x✗ 2.4x
How much operating profit can fall before interest stops being comfortably covered.

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

₹142 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

422.3x

Expensive

Expensive — verify against sector peers

P/B Ratio

1.05x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹0.26

Profitable

Profitable on a per-share basis

ROE

0.2%

Weak

Weak capital efficiency

ROCE

0.6%

Weak

Low return on total capital employed

Debt/Equity

0.19x

Low

Conservative leverage

Revenue Growth (YoY)

8623.5%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-60.0%

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

-₹6 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

9.6%

Average

Average margins

Net Margin

2.4%

Weak

Very little revenue reaches the bottom line

Current Ratio

1.42

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.66

Defensive

Steadier than the market

52W Range Position

57%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

114.7 / 115.3

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

43.0

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹8 Cr	—	—	₹11 Cr	+12.8%
EBITDA	₹0 Cr	-₹0 Cr	-₹0 Cr	₹0 Cr	+121.3%
EBITDA Margin	0.5%	—	—	3.6%	—
PAT (Net Profit)	₹0 Cr	₹0 Cr	-₹0 Cr	₹0 Cr	+82.9%
EPS	₹0.09	₹0.29	₹-0.07	₹0.25	+40.6%
ROE	0.7%	2.3%	-0.5%	0.2%	—
ROCE	0.9%	-6.2%	-2.4%	0.6%	—
Free Cash Flow	₹0 Cr	₹0 Cr	-₹0 Cr	-₹6 Cr	—

🟢 Revenue has grown at 12.8% a year over 3 years.

🟢 EBITDA has grown at 121.3% a year over 3 years.

🟢 EBITDA Margin has risen from 0.5% to 3.6% over 3 years (+3.1 pts).

🟢 PAT (Net Profit) has grown at 82.9% a year over 3 years.

🟢 EPS has grown at 40.6% a year over 3 years.

🟡 ROE has held roughly flat at 0.2% over 3 years.

🟡 ROCE has held roughly flat at 0.6% over 3 years.

🔴 Free Cash Flow has turned negative, from ₹0 Cr to -₹6 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹85 Cr

Total Liabilities

₹19 Cr

Total Debt

₹13 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

-₹6 Cr

Capex

-₹0 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

71.9%

Peer Comparison

Company	P/E	ROE
HINDALCO INDUSTRIES LTD	12.3x	12.0%
VEDANTA LIMITED	10.4x	18.7%
TATA STEEL LIMITED	19.8x	10.8%

Recent News

1 mixed5 general

Ace Men Engg Works sets book closure for AGM on September 30, 2026

scanx.trade, 02 Sept

ACE Men Engg Works Ltd. Key Financial Ratios – Valuation, Profitability & More

Value Research, 02 Sept

Ace Men Engg Works declares AGM voting results; all resolutions pass

scanx.trade, 06 OctResults

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

ACE Men Engg Works Ltd. Financials – Balance Sheet, Profit & Loss, Cash Flow

Value Research, 29 Aug

Sarda Proteins Share Price and stock news near yearly high

Univest, 25 Sept

Global Defence Industries (BSE:512091) - Stock Analysis

Simply Wall Street, 03 Jul

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongGrowth

MiddlingFinancial Health

WeakBusiness Quality · Profitability · Valuation · Risk

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 high-severity red flag sits above this conclusion and should be read first.

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