Aditya Consumer Marketing Limited

Consumer Cyclical — Department Stores · BSE

₹37.50+₹0.51 (+1.38%)

DalalBaazaar Score

31 / 100

🔴 Weak

Verdict

CAUTION

Risk

High

Driven by negative free cash flow, the company is currently loss-making, micro-cap size, which brings thin liquidity.

In simple words: The company is currently losing money, but sales are shrinking. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:04 pm

Caution warranted. Multiple fundamental metrics — flagged in red below — point to either valuation stretch, leverage risk, or weakening profitability. This doesn't mean avoid the stock outright, but it does mean the burden of proof is on the growth story to justify the current price.

Understanding the Business

Company site ↗

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

What does this company do?

Aditya Consumer Marketing Limited, operates and manages supermarkets, salon and spa, and restaurants in India. It operates through Retail Trade; Food & Beverage; and Salon segments.

IndustryDepartment Stores

SectorConsumer Cyclical

Employees565

Annual revenue₹91 Cr

How does it make money?

Turns over ₹91 Cr a year. Of every ₹100 of sales, about ₹-2 reaches shareholders as profit, with ₹1 left at the operating level before interest, tax and depreciation. Each of its 565 employees supports ₹16.2 lakh of revenue a year, the signature of a people-led business.

EBITDA margin0.8%

Net margin-2.3%

Revenue / employee₹16.2 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.

MARUTI SUZUKI INDIA LTD.P/E 25.2x · ROE 13.4%

TITAN COMPANY LIMITEDP/E 68.5x · ROE 36.7%

TRENT LTDP/E 87.2x · ROE 25.9%

AVENUE SUPERMARTS LIMITEDP/E 69.9x · ROE 12.7%

What is its competitive advantage?Little sign of one

Returns on capital of -8.3% 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.

ROCE-8.3%

ROE-10.9%

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 -6% while net margin moved -285% 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-6%

Margin effect-285%

DalalBaazaar Score

31/ 100

Weak

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 1.9% a year

Quality vs. Valuation

Company Quality

29/ 100

Weak

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

Valuation

25/ 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.

vs. its own history

Not enough price and earnings history

vs. sector peers

Not enough peers with a usable P/E

vs. generic bands

N/A

No P/E — the company is lossmaking

P/E (Trailing)

Not meaningful

P/B

2.96x

EV/EBITDA

69.2x

PEG

—

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well1

Debt is being paid down
Total debt is down 39% over 3 years.

🔴 What Needs Attention4

Margins are compressing
EBITDA margin has slipped from 4.2% to 0.8% over 3 years.
Free cash flow is negative
The business is not currently covering its capital spending from operations.
Return on equity is falling
ROE has dropped from 4.4% to -11.5% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 8.0% to -8.3% — often a sign of competition or overexpansion.

Red Flags

5 items require attention · 3 high · 2 watch

🔴Thin interest coverageFinancial
Operating profit covers interest only -3.6x — little room if earnings dip.
🔴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.
🔴The company is lossmakingFinancial
Net profit of -₹2 Cr in the latest reported year.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹0 Cr in the latest year.
🟡Margins are compressingFinancial
EBITDA margin is down 3.4 points over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Deleveraging frees up earnings
Debt is down 39% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.

🔴 Bear CaseWhat could go wrong?

Margins are being competed away
EBITDA margin has fallen from 4.2% to 0.8%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
The debt load needs earnings to hold up
Debt is 8.4x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
Returns on shareholder capital are falling
ROE has dropped from 4.4% to -11.5%. 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 -1%✓ 0.8%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA falls below 3x✗ 8.4x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
3Free cash flow remains positive✗ -₹0 Cr
Profit that never becomes cash eventually stops being profit.
4Interest cover stays above 3x✗ -3.6x
How much operating profit can fall before interest stops being comfortably covered.
5ROCE stays above 8%✗ -8.3%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

6 / 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

₹55 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

Not meaningful

Loss-making

Earnings are negative, so a P/E multiple can't be read here

P/B Ratio

2.96x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹-1.46

Loss-making

Negative earnings per share — the business is losing money

ROE

-10.9%

Weak

Weak capital efficiency

ROCE

-8.3%

Weak

Low return on total capital employed

Debt/Equity

0.32x

Low

Conservative leverage

Revenue Growth (YoY)

-6.1%

Shrinking

Sales are contracting

Profit Growth (YoY)

44.3%

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

-₹1 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

CMP

₹37.5

ROA

-4.2%

Weak

Assets generate little profit

Operating Margin

-0.7%

Weak

Thin margins leave little room for error

Net Margin

-2.3%

Weak

Very little revenue reaches the bottom line

Current Ratio

1.63

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.41

Defensive

Steadier than the market

52W Range Position

30%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

33.5 / 33.1

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

61.4

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹97 Cr	₹93 Cr	₹97 Cr	₹91 Cr	-1.9%
EBITDA	₹4 Cr	₹4 Cr	₹1 Cr	₹1 Cr	-44.3%
EBITDA Margin	4.2%	4.4%	1.3%	0.8%	—
PAT (Net Profit)	₹1 Cr	-₹3 Cr	-₹4 Cr	-₹2 Cr	—
EPS	₹0.84	₹-2.1	₹-2.62	—	—
ROE	4.4%	-12.5%	-18.5%	-11.5%	—
ROCE	8.0%	-9.5%	-15.1%	-8.3%	—
Total Debt	₹10 Cr	₹6 Cr	₹5 Cr	₹6 Cr	-15.3%
Free Cash Flow	₹6 Cr	₹5 Cr	₹3 Cr	-₹0 Cr	—

🟡 Revenue has been broadly flat over 3 years (-1.9% a year).

🔴 EBITDA has shrunk at 44.3% a year over 3 years.

🔴 EBITDA Margin has fallen from 4.2% to 0.8% over 3 years (-3.4 pts).

🔴 PAT (Net Profit) has turned negative, from ₹1 Cr to -₹2 Cr.

🔴 ROE has fallen from 4.4% to -11.5% over 3 years (-15.9 pts).

🔴 ROCE has fallen from 8.0% to -8.3% over 3 years (-16.3 pts).

🟢 Total Debt has shrunk at 15.3% a year over 3 years.

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

Balance Sheet & Cash Flow — FY2026

Total Assets

₹36 Cr

Total Liabilities

₹18 Cr

Total Debt

₹6 Cr

Cash & Equivalents

₹12 Cr

Operating Cash Flow

₹1 Cr

Capex

-₹1 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

81.1%

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

Aditya Consumer Marketing: Loss Narrows, Returns to Small Profit

Kalkine India, 12 Oct

Aditya Consumer Marketing Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 31 Aug

Aditya Consumer Marketing holds 24th AGM, approves FY26 accounts

scanx.trade, 02 Sept

Aditya Consumer Marketing Ltd. Peer Comparison – Compare with Others

Value Research, 01 Sept

Aditya Consumer Marketing (BSE: 540146): Losses Narrow in FY26

Kalkine India, 06 Oct

ACEVECTOR LTD. Stock/Share price , NSE/BSE Forecast News and Live Quotes

Equitymaster, 09 Oct

Watch Items

Revenue growth is negative (-6.1%) 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

🔴Business QualityWeak4.7/20

🟡Financial HealthAdequate12.1/20

🔴GrowthWeak2.4/20

🔴ProfitabilityWeak2.5/15

🔴ValuationDemanding5.1/15

🔴RiskHigh4/10

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

This thesis breaks if

✓EBITDA margin holds above -1%0.8%
✗Debt / EBITDA falls below 3x8.4x
✗Free cash flow remains positive-₹0 Cr
✗Interest cover stays above 3x-3.6x
✗ROCE stays above 8%-8.3%