Acme Resources Limited

Financial Services — Credit Services · BSE

₹28.50−₹0.99 (−3.36%)

DalalBaazaar Score

34 / 100

🔴 Weak

Verdict

CAUTION

Risk

High

Driven by micro-cap size, which brings thin liquidity, a very high earnings multiple, which leaves little margin for disappointment, falling profits.

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

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:54 pm

Understanding the Business

Company site ↗

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

What does this company do?

Acme Resources Limited operates as a non-banking financial company in India. It grants loans and advances; and trades in shares, properties, and securities. The company was formerly known as Shubh Automobiles Limited.

IndustryCredit Services

SectorFinancial Services

Annual revenue₹10 Cr

How does it make money?

Turns over ₹10 Cr a year. Of every ₹100 of sales, about ₹15 reaches shareholders as profit, with ₹5 left at the operating level before interest, tax and depreciation.

Who are its competitors?

The closest listed comparisons in its industry are BAJAJ FINANCE LIMITED, STATE BANK OF INDIA, HDFC BANK LTD, ICICI BANK 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 ROE16.5%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved -47% while net margin moved -78% 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-47%

Margin effect-78%

DalalBaazaar Score

34/ 100

Weak

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 19.1% a year
✗ Profit has declined at 51.4% a year
✗ Profit fell 59.7% in the latest year

Quality vs. Valuation

Company Quality

38/ 100

Weak

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

Valuation

23/ 100

Expensive

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

Weak on business quality and not cheap enough to compensate.

Historical Valuation

Current P/E

63.3x

3Y Median

28.1x

40 monthly readings · mean 34.4x · range 4.8x–115.2x

Sector Median

17.0x

median of 4 sector peers

⚠️Current valuation is approximately 126% above its 3y median of 28.1x. 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 273% above the peer median of 17.0x.

vs. its own history

Expensive

28.1x median over 40 months · +126%

vs. sector peers

Expensive

17.0x median of 4 peers · +273%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

155.9x

PEG

—

What's Good / What's Bad

🟢 What's Going Well1

Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 9.9% to 1.1% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 12.1% to 0.4% — often a sign of competition or overexpansion.

Red Flags

2 items require attention · 1 high · 1 watch

🔴Significant margin compressionFinancial
EBITDA margin has fallen 83.8 points, from 89.1% to 5.3%.
🟡Profit is decliningFinancial
Net profit is down 89% over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

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?

Margins are being competed away
EBITDA margin has fallen from 89.1% to 5.3%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
The price already assumes success
The stock trades 126% 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.
Returns on shareholder capital are falling
ROE has dropped from 9.9% to 1.1%. Each rupee of equity earns less than it did, so profit growth increasingly depends on raising more capital rather than on the existing base working harder.
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 3%✓ 5.3%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Return on equity stays above 8%✗ 1.1%
For a lender this is the cleanest single read on whether the book is being grown profitably.
3Valuation vs its own median of 28.1x✗ 63.3x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

3 / 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

2 good · 3 neutral · 6 weak

Market Cap

₹73 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

63.3x

Expensive

Expensive — verify against sector peers

P/B Ratio

Not available

No data

Source didn't return this field

EPS (TTM)

₹0.45

Profitable

Profitable on a per-share basis

ROE

1.1%

Weak

Weak capital efficiency

ROCE

0.4%

Weak

Low return on total capital employed

Debt/Equity

6.80x

High

High leverage

Revenue Growth (YoY)

-10.0%

Shrinking

Sales are contracting

Profit Growth (YoY)

-59.7%

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

₹10 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

0.0%

Weak

Thin margins leave little room for error

Net Margin

0.0%

Weak

Very little revenue reaches the bottom line

Current Ratio

7.35

Comfortable

Healthy short-term liquidity

52W Range Position

11%

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

28.7 / 28.7

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

45.6

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹19 Cr	₹10 Cr	₹11 Cr	₹10 Cr	-19.1%
EBITDA	₹17 Cr	₹3 Cr	₹16 Cr	₹1 Cr	-68.5%
EBITDA Margin	89.1%	27.0%	146.3%	5.3%	—
PAT (Net Profit)	₹12 Cr	₹2 Cr	₹4 Cr	₹1 Cr	-51.4%
EPS	₹4.82	₹0.66	₹1.38	₹0.55	-51.5%
ROE	9.9%	1.3%	2.7%	1.1%	—
ROCE	12.1%	1.9%	6.9%	0.4%	—
Total Debt	₹11 Cr	₹12 Cr	₹19 Cr	₹9 Cr	-7.3%
Free Cash Flow	-₹8 Cr	-₹1 Cr	₹1 Cr	₹10 Cr	—

🔴 Revenue has shrunk at 19.1% a year over 3 years.

🔴 EBITDA has shrunk at 68.5% a year over 3 years.

🔴 EBITDA Margin has fallen from 89.1% to 5.3% over 3 years (-83.8 pts).

🔴 PAT (Net Profit) has shrunk at 51.4% a year over 3 years.

🔴 EPS has shrunk at 51.5% a year over 3 years.

🔴 ROE has fallen from 9.9% to 1.1% over 3 years (-8.8 pts).

🔴 ROCE has fallen from 12.1% to 0.4% over 3 years (-11.8 pts).

🟢 Total Debt has shrunk at 7.3% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹8 Cr to ₹10 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹145 Cr

Total Liabilities

₹13 Cr

Cash & Equivalents

₹2 Cr

Operating Cash Flow

₹10 Cr

Capex

—

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

88.0%

Peer Comparison

Company	P/E	ROE
BAJAJ FINANCE LIMITED	30.2x	17.8%
STATE BANK OF INDIA	10.3x	15.2%
HDFC BANK LTD	15.9x	13.8%
ICICI BANK LTD.	18.1x	16.5%

Recent News

3 mixed1 negative2 general

Acme Resources Company Secretary Amanpreet Kaur resigns

scanx.trade, 16 Oct

Acme Resources (BSE: 539391): Finance and Leasing Business Overview and Insights

Kalkine India, 17 Sept

Acme Solar Holdings Ltd. Share Price News on Large-Cap Rise

Univest, 19 AugPrice 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.

ACME Solar Holdings' share price surges over 9% amid weak market on March 19; stock up 27% in 12 months

Upstox, 19 MarPrice 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.

Magellanic Cloud consolidated net profit declines 14.56% in the June 2026 quarter

Business Standard, 15 AugResults

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

Acme Solar Holdings Ltd. Share Price: Price Rise Analysis

Univest, 20 AugPrice 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.

Watch Items

Revenue growth is negative (-10.0%) on the latest reported period — check if this is one-off or a trend.
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.
1 metric couldn't be retrieved for this stock — this is more common for smaller or thinly-covered listings.

DalalBaazaar Thesis

StrongFinancial Health

WeakBusiness Quality · Growth · Profitability · Valuation · Risk

Points for each in the Score ↑

Weak on the fundamentals

Poor scores on business quality without a price low enough to compensate. There is no obvious argument for owning this over a stronger company at a similar valuation. 1 high-severity red flag sits above this conclusion and should be read first.

2 of 3 tripwires tripped — Return on equity stays above 8%; Valuation vs its own median of 28.1x · see Key things to watch ↑