Automobile Corporation of Goa Limited

Consumer Cyclical — Auto Parts · NSE

₹1,765.00+₹75.60 (+4.47%)

DalalBaazaar Score

68 / 100

🟢 Good

Verdict

NEUTRAL

Risk

High

Driven by high debt relative to equity, micro-cap size, which brings thin liquidity, falling profits.

In simple words: Strong business and financial position, but sales are shrinking. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:52 pm

Understanding the Business

Company site ↗

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

What does this company do?

Automobile Corporation of Goa Limited manufactures and sells pressed parts, components, sub-assemblies, and bus bodies for range of automobiles in India. It operates in two segments, Pressing Division and Bus Body Building Division.

IndustryAuto Parts

SectorConsumer Cyclical

Employees423

Annual revenue₹917 Cr

How does it make money?

Turns over ₹917 Cr a year. Of every ₹100 of sales, about ₹8 reaches shareholders as profit, with ₹11 left at the operating level before interest, tax and depreciation. Each of its 423 employees supports ₹2.17 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹2.17 Cr

Who are its competitors?

The closest listed comparisons in its industry are BOSCH LIMITED, MARUTI SUZUKI INDIA LTD., TVS MOTOR COMPANY LTD, EICHER MOTORS 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?The numbers suggest a real one

ROCE has stayed above 15% in every year available and stands at 29.1%. Returns that high normally get competed away; when they persist, something is protecting them, and its ROE of 22.6% against a peer median of 23.0% is consistent with that. What that something is — brand, scale, switching costs, regulation — the accounts cannot tell you.

Peer median ROE23.0%

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +86% while net margin moved +35% 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+86%

Margin effect+35%

DalalBaazaar Score

68/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of 0.41 — historically steadier than the index
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ High leverage magnifies any downturn in earnings

Quality vs. Valuation

Company Quality

71/ 100

Good

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

Valuation

74/ 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

18.5x

Sector Median

45.7x

median of 4 sector peers

🟢Against its sector it trades 59% below the peer median of 45.7x.

vs. its own history

Not enough price and earnings history

vs. sector peers

Cheap

45.7x median of 4 peers · -59%

vs. generic bands

Fair

15x–35x

EV/EBITDA

9.3x

PEG

0.52

What's Good / What's Bad

🟢 What's Going Well7

Margins are improving
EBITDA margin is up from 7.9% to 11.2% over 3 years.
Debt is being paid down
Total debt is down 87% 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 14.4% to 22.6%.
Return on capital is rising
ROCE has improved from 18.2% to 29.1%.
High return on capital employed
ROCE of 29.1% is the mark of a business that converts capital into profit efficiently.
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

1 item require attention · 1 high

🔴High leverageFinancial
Debt/Equity of 3.08x — earnings must service borrowings before shareholders see anything.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 29.1% means each rupee reinvested earns well above what capital costs. If the company can keep deploying at this rate, growth creates value rather than just consuming cash.
Margin expansion has further to run
EBITDA margin has risen from 7.9% to 11.2%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Deleveraging frees up earnings
Debt is down 87% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
Cheaper than its peers
It trades 59% 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?

Leverage amplifies any setback
Debt/Equity of 3.08x. Interest is payable whether or not the business has a good year.
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 17% a year✓ 22.9% CAGR
Latest reported year was -2.9%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 9%✓ 11.2%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✓ ₹99 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.1x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 26%✓ 29.1%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

6 / 10 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

Price history

Quick Metrics

5 good · 3 neutral · 3 weak

Market Cap

₹1,075 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

18.5x

Fair

Fairly valued against the generic band

P/B Ratio

3.48x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹95.31

Profitable

Profitable on a per-share basis

ROE

22.6%

Strong

Strong capital efficiency

ROCE

29.1%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

3.08x

High

High leverage

Revenue Growth (YoY)

-2.9%

Shrinking

Sales are contracting

Profit Growth (YoY)

-51.4%

Falling

Profits are shrinking

Dividend Yield

2.55%

Healthy

Meaningful cash return while you hold the stock

Free Cash Flow

₹99 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

4.6%

Weak

Thin margins leave little room for error

Net Margin

6.3%

Average

Average bottom-line conversion

Current Ratio

2.66

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.41

Defensive

Steadier than the market

52W Range Position

45%

Mid-range

Technical Snapshot

RSI (14)

54.0

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹494 Cr	₹571 Cr	₹651 Cr	₹917 Cr	+22.9%
EBITDA	₹39 Cr	₹56 Cr	₹67 Cr	₹103 Cr	+38.4%
EBITDA Margin	7.9%	9.8%	10.3%	11.2%	—
PAT (Net Profit)	₹28 Cr	₹38 Cr	₹47 Cr	₹70 Cr	+35.9%
EPS	₹45.73	₹63.02	₹76.54	₹114.79	+35.9%
ROE	14.4%	17.5%	18.4%	22.6%	—
ROCE	18.2%	22.0%	23.4%	29.1%	—
Total Debt	₹72 Cr	₹63 Cr	₹86 Cr	₹10 Cr	-49.2%
Free Cash Flow	-₹8 Cr	₹54 Cr	-₹7 Cr	₹99 Cr	—

🟢 Revenue has grown at 22.9% a year over 3 years.

🟢 EBITDA has grown at 38.4% a year over 3 years.

🟢 EBITDA Margin has risen from 7.9% to 11.2% over 3 years (+3.4 pts).

🟢 PAT (Net Profit) has grown at 35.9% a year over 3 years.

🟢 EPS has grown at 35.9% a year over 3 years.

🟢 ROE has risen from 14.4% to 22.6% over 3 years (+8.3 pts).

🟢 ROCE has risen from 18.2% to 29.1% over 3 years (+10.9 pts).

🟢 Total Debt has shrunk at 49.2% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹8 Cr to ₹99 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹459 Cr

Total Liabilities

₹150 Cr

Cash & Equivalents

₹121 Cr

Operating Cash Flow

₹136 Cr

Capex

-₹37 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

66.5%

Corporate Actions

Dividend Rate

₹45

Ex-Dividend Date

14 Jul 2026

Peer Comparison

Company	P/E	ROE
BOSCH LIMITED	56.9x	15.9%
MARUTI SUZUKI INDIA LTD.	25.2x	13.4%
TVS MOTOR COMPANY LTD	56.8x	35.8%
EICHER MOTORS LTD	34.7x	23.0%

Recent News

1 positive1 mixed1 negative3 general

ACGL Share Price Rises 8.6% Today | Automobile Corp of Goa

Univest, 16 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.

Automobile Corporation of Goa (BSE:505036) - Stock Analysis

Simply Wall Street, 13 Oct

Automobile Corporation of Goa to consider equity buyback on Oct 21

scanx.trade, 15 OctCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

Automobile Corporation of Goa Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 04 Sept

Volume Gainers on October 16, 2026, at 12:00 PM IST: Mirae Asset Nifty 100 Low Volatility 30 ETF Leads The Volume

HDFC Sky, 16 Oct

Automobile Corporation of Goa net profit falls 51.5% in Q1FY27

scanx.trade, 05 AugResults

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

Watch Items

Revenue growth is negative (-2.9%) on the latest reported period — check if this is one-off or a trend.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongFinancial Health · Growth · Profitability · Valuation

MiddlingBusiness Quality

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.

All 5 tripwires holding · see Key things to watch ↑