Archidply Decor Limited

Consumer Cyclical — Furnishings, Fixtures & Appliances · NSE

₹70.03−₹2.44 (−3.37%)

DalalBaazaar Score

37 / 100

🔴 Weak

Verdict

CAUTION

Risk

High

Driven by the company is currently loss-making, micro-cap size, which brings thin liquidity, falling profits.

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

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:46 pm

Understanding the Business

Company site ↗

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

What does this company do?

Archidply Decor Limited engages in the manufacturing and trading of wood-based products in India and internationally. The company provides decorative laminates, decorative veneers, plywood and block board, and pre-laminated particle boards.

IndustryFurnishings, Fixtures & Appliances

SectorConsumer Cyclical

Employees50

Annual revenue₹46 Cr

How does it make money?

Turns over ₹46 Cr a year. Of every ₹100 of sales, about ₹0 reaches shareholders as profit, with ₹8 left at the operating level before interest, tax and depreciation. Each of its 50 employees supports ₹92.5 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹92.5 lakh

Who are its competitors?

The closest listed comparisons in its industry are HAVELLS INDIA LIMITED, VOLTAS LTD, TITAN COMPANY 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 3.2% 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 ROE17.1%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved -8% while net margin moved -100% 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-8%

Margin effect-100%

DalalBaazaar Score

37/ 100

Weak

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 2.9% a year
✗ Profit has declined at 86.0% a year
✗ Profit fell 96.5% in the latest year

Quality vs. Valuation

Company Quality

34/ 100

Weak

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

Valuation

36/ 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

EV/EBITDA

16.5x

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 Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

3 items require attention · 1 high · 2 watch

🔴Thin interest coverageFinancial
Operating profit covers interest only 1.0x — little room if earnings dip.
🟡Profit is decliningFinancial
Net profit is down 100% over 3 years.
🟡Inventory building faster than salesFinancial
Inventory up 26% against revenue up -8% — stock may not be moving.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Self-funding with balance-sheet headroom
Positive free cash flow of ₹2 Cr alongside low debt means growth, buybacks or dividends need no outside money — and a downturn can be absorbed rather than refinanced.
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?

The debt load needs earnings to hold up
Debt is 5.5x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
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 6%✓ 7.5%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA falls below 3x✗ 5.5x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
3Interest cover stays above 3x✗ 1.0x
How much operating profit can fall before interest stops being comfortably covered.
4Free cash flow remains positive✓ ₹2 Cr
Profit that never becomes cash eventually stops being profit.
5ROCE stays above 8%✗ 3.2%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

5 / 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

3 good · 2 neutral · 6 weak

Market Cap

₹39 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

0.68x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹-0.2

Loss-making

Negative earnings per share — the business is losing money

ROE

0.0%

Weak

Weak capital efficiency

ROCE

3.2%

Weak

Low return on total capital employed

Debt/Equity

0.37x

Low

Conservative leverage

Revenue Growth (YoY)

-0.1%

Shrinking

Sales are contracting

Profit Growth (YoY)

-96.5%

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

₹2 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

-3.3%

Weak

Thin margins leave little room for error

Net Margin

-0.2%

Weak

Very little revenue reaches the bottom line

Current Ratio

2.08

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.41

Defensive

Steadier than the market

52W Range Position

44%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

71.9 / 72.1

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

50.3

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹50 Cr	₹47 Cr	₹52 Cr	₹46 Cr	-2.9%
EBITDA	₹4 Cr	₹5 Cr	₹4 Cr	₹3 Cr	-6.5%
EBITDA Margin	8.4%	11.1%	7.8%	7.5%	—
PAT (Net Profit)	₹1 Cr	₹0 Cr	₹0 Cr	₹0 Cr	-86.0%
EPS	₹1.31	₹0.05	₹0.1	₹0	-85.5%
ROE	1.4%	0.1%	0.1%	0.0%	—
ROCE	4.7%	4.9%	4.0%	3.2%	—
Total Debt	₹15 Cr	₹22 Cr	₹22 Cr	₹19 Cr	+7.1%
Free Cash Flow	₹4 Cr	-₹2 Cr	₹1 Cr	₹2 Cr	-17.4%

🔴 Revenue has shrunk at 2.9% a year over 3 years.

🔴 EBITDA has shrunk at 6.5% a year over 3 years.

🟡 EBITDA Margin has held roughly flat at 7.5% over 3 years.

🔴 PAT (Net Profit) has shrunk at 86.0% a year over 3 years.

🔴 EPS has shrunk at 85.5% a year over 3 years.

🔴 ROE has fallen from 1.4% to 0.0% over 3 years (-1.4 pts).

🔴 ROCE has fallen from 4.7% to 3.2% over 3 years (-1.5 pts).

🔴 Total Debt has grown at 7.1% a year over 3 years.

🔴 Free Cash Flow has shrunk at 17.4% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹75 Cr

Total Liabilities

₹24 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

₹2 Cr

Capex

-₹0 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

83.6%

Peer Comparison

Company	P/E	ROE
HAVELLS INDIA LIMITED	43.5x	17.1%
VOLTAS LTD	75.8x	7.0%
TITAN COMPANY LIMITED	68.5x	36.7%

Recent News

1 mixed1 negative4 general

Archidply Decor Q2 Results FY27: Date and Expectations

Univest, 08 SeptResults

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

Archidply Decor Ltd leads losers in 'B' group

Business Standard, 10 Aug

Archidply Decor Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 02 Sept

Archidply Decor CFO Raju Ram Prajapat resigns effective Nov 24

scanx.trade, 06 OctManagement

🔴Potentially negativeA senior departure, and an auditor's resignation especially, is worth understanding before anything else in this report.

Archidply Decor Share Price: Buy or Sell

Univest, 08 Sept

Archidply Decor Ltd leads losers in 'B' group

Business Standard, 05 Aug

Watch Items

Revenue growth is negative (-0.1%) 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

StrongFinancial Health

MiddlingValuation

WeakBusiness Quality · Growth · Profitability · 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.

3 of 5 tripwires tripped — Debt / EBITDA falls below 3x; Interest cover stays above 3x; ROCE stays above 8% · see Key things to watch ↑