Afcom Holdings Limited

Industrials — Airlines · BSE

₹1,512.00−₹16.00 (−1.05%)

DalalBaazaar Score

71 / 100

🟢 Good

Verdict

REASONABLE

Risk

Moderate

Driven by negative free cash flow, micro-cap size, which brings thin liquidity.

In simple words: Strong business and financial position, with both sales and profits growing well. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:00 pm

Understanding the Business

Company site ↗

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

What does this company do?

Afcom Holdings Limited provides air freight transportation services in ASEAN Countries. The company provides cargo solutions and products, including general cargo, flying fresh, flying pharma, flying priority, fly courier, project cargo, dangerous goods, and high-value cargo.

IndustryAirlines

SectorIndustrials

Employees115

Annual revenue₹583 Cr

How does it make money?

Turns over ₹583 Cr a year. Of every ₹100 of sales, about ₹21 reaches shareholders as profit, with ₹37 left at the operating level before interest, tax and depreciation. Each of its 115 employees supports ₹5.07 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹5.07 Cr

Who are its competitors?

The closest listed comparisons in its industry are LARSEN & TOUBRO LTD., SIEMENS LTD, ABB INDIA 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?Some evidence

ROCE of 22.9% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

Peer median ROE15.2%

DalalBaazaar Score

71/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of 0.48 — historically steadier than the index
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ Profits have swung sharply from year to year — earnings are hard to forecast
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

79/ 100

Good

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

Valuation

71/ 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

25.8x

2Y Median

55.6x

28 monthly readings · mean 59.7x · range 30.9x–97.8x

Sector Median

88.8x

median of 3 sector peers

🟢Current valuation is approximately 54% below its 2y median of 55.6x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

🟢Against its sector it trades 71% below the peer median of 88.8x.

vs. its own history

Cheap

55.6x median over 28 months · -54%

vs. sector peers

Cheap

88.8x median of 3 peers · -71%

vs. generic bands

Fair

15x–35x

EV/EBITDA

21.7x

PEG

0.35

What's Good / What's Bad

🟢 What's Going Well2

High return on capital employed
ROCE of 22.9% 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

2 items require attention · 1 high · 1 watch

🔴Debt has risen sharplyFinancial
Total debt is up 2489% over 3 years, from ₹15 Cr to ₹401 Cr.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹76 Cr in the latest year.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 22.9% 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.
Priced below its own history
The stock trades 54% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Cheaper than its peers
It trades 71% 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?

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 47% a year✓ 62.2% CAGR
Latest reported year was 48.1%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 35%✓ 37.0%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹76 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 1.9x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 20%✓ 22.9%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

9 / 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

6 good · 3 neutral · 2 weak

Market Cap

₹4,341 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

25.8x

Fair

Fairly valued against the generic band

P/B Ratio

6.08x

Rich

Steep premium to book — needs high, durable returns to justify

EPS (TTM)

₹58.54

Profitable

Profitable on a per-share basis

ROE

29.9%

Strong

Strong capital efficiency

ROCE

22.9%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.54x

Low

Conservative leverage

Revenue Growth (YoY)

48.1%

Healthy

Healthy top-line growth

Profit Growth (YoY)

28.7%

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

-₹123 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

ROA

17.1%

Good

Assets are working hard

Operating Margin

31.0%

Good

Healthy core-business profitability

Net Margin

21.9%

Good

Strong bottom-line conversion

Current Ratio

3.30

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.48

Defensive

Steadier than the market

52W Range Position

81%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

1473.6 / 1512.2

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

59.8

Neutral momentum

Financial Trend (5-Year)

Metric	FY23	FY24	FY24	FY25	FY26	3Y CAGR	4Y CAGR
Revenue	₹84 Cr	—	₹148 Cr	₹239 Cr	₹583 Cr	—	+62.2%
EBITDA	₹19 Cr	—	₹36 Cr	₹68 Cr	₹216 Cr	—	+83.6%
EBITDA Margin	22.5%	—	24.5%	28.7%	37.0%	—	—
PAT (Net Profit)	₹14 Cr	—	₹25 Cr	₹37 Cr	₹122 Cr	—	+73.1%
EPS	₹5.47	—	₹10.23	₹16.47	₹48.73	—	+72.8%
ROE	—	—	24.7%	18.0%	26.7%	—	—
ROCE	—	—	31.2%	13.6%	22.9%	—	—
Total Debt	—	₹15 Cr	₹21 Cr	₹266 Cr	₹401 Cr	+195.8%	+195.8%
Free Cash Flow	-₹31 Cr	—	₹31 Cr	-₹290 Cr	-₹76 Cr	—	—

🟢 Revenue has grown at 62.2% a year over 4 years.

🟢 EBITDA has grown at 83.6% a year over 4 years.

🟢 EBITDA Margin has risen from 22.5% to 37.0% over 3 years (+14.4 pts).

🟢 PAT (Net Profit) has grown at 73.1% a year over 4 years.

🟢 EPS has grown at 72.8% a year over 4 years.

🟢 ROE has risen from 24.7% to 26.7% over 3 years (+2.0 pts).

🔴 ROCE has fallen from 31.2% to 22.9% over 3 years (-8.3 pts).

🔴 Total Debt has grown at 195.8% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹935 Cr

Total Liabilities

₹478 Cr

Cash & Equivalents

₹62 Cr

Operating Cash Flow

₹36 Cr

Capex

-₹112 Cr

Shareholding (proxy)

Institutional Holding

5.3%

Insider Holding

46.8%

Peer Comparison

Company	P/E	ROE
LARSEN & TOUBRO LTD.	30.1x	15.2%
SIEMENS LTD	88.8x	10.5%
ABB INDIA LIMITED	92.6x	19.1%

Recent News

1 mixed5 general

Compare with

Equitymaster, 16 Oct

Afcom Holdings - 3 ace investors bought, added stake in these 8 stocks. How many are in your portfolio?

The Economic Times, 30 Jul

Afcom Holdings Limited Share Price

Upstox, 05 May

AFCOM Holdings FY26 PAT rises 72.85% to ₹4,466.08 lakhs

scanx.trade, 06 Jun

Afcom Holdings Share Price Falls Nearly 6% Despite Long-Term Aviation Fuel Deal With HPCL

Univest, 15 SeptPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

Afcom Holdings Ltd. (AFCO) Share Price Within 2% of 52-Week High

Univest, 12 Aug

Watch Items

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

DalalBaazaar Thesis

StrongBusiness Quality · Growth · Profitability

MiddlingFinancial Health · Valuation

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.

1 of 5 tripwires tripped — Free cash flow remains positive · see Key things to watch ↑