Autofurnish Limited

Consumer Cyclical — Auto Parts · BSE

₹122.94−₹2.50 (−1.99%)

DalalBaazaar Score

60 / 100

🟢 Good

Verdict

CAUTION

Risk

High

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

In simple words: Strong business and financial position, with modest growth. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:01 pm

Understanding the Business

Company site ↗

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

What does this company do?

Autofurnish Limited engages in the manufacture, trade, export, and supply of automobile accessories under the Autofurnish and Mototrance brand names in India.

IndustryAuto Parts

SectorConsumer Cyclical

Employees26

Annual revenue₹39 Cr

How does it make money?

Turns over ₹39 Cr a year. Of every ₹100 of sales, about ₹9 reaches shareholders as profit, with ₹17 left at the operating level before interest, tax and depreciation. Each of its 26 employees supports ₹1.50 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹1.50 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?Some evidence

ROCE of 24.9% 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 ROE23.0%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +268% while net margin moved +525% 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+268%

Margin effect+525%

DalalBaazaar Score

60/ 100

Good

Weighted across six categories. Every point is explained below.

✗ P/E of 45.7x is demanding — it needs sustained high growth to justify
✗ P/B of 6.67x is a steep premium to book

Quality vs. Valuation

Company Quality

72/ 100

Good

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

Valuation

48/ 100

Fair

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

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

45.7x

Sector Median

45.7x

median of 4 sector peers

🟡Against its sector it is priced broadly in line with the peer median of 45.7x.

vs. its own history

Not enough price and earnings history

vs. sector peers

Fair

45.7x median of 4 peers · -0%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

27.1x

PEG

0.25

What's Good / What's Bad

🟢 What's Going Well5

Margins are improving
EBITDA margin is up from 8.2% to 16.9% over 3 years.
Return on equity is rising
ROE has improved from 2.1% to 18.5%.
Return on capital is rising
ROCE has improved from 6.9% to 24.9%.
High return on capital employed
ROCE of 24.9% 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

5 items require attention · 3 high · 2 watch

🔴Debt has risen sharplyFinancial
Total debt is up 318% over 3 years, from ₹3 Cr to ₹12 Cr.
🔴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.
🔴Receivables growing faster than salesFinancial
Receivables up 320% against revenue up 268% — sales are being booked faster than they are collected.
🟡Interest coverage is deterioratingFinancial
Cover has fallen from 8.3x to 5.2x.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹6 Cr in the latest year.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 24.9% 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.
Margin expansion has further to run
EBITDA margin has risen from 8.2% to 16.9%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
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?

Sales are being booked faster than collected
Receivables are up 320% against revenue up 268%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
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.
Several serious flags at once
3 high-severity checks triggered. Individually each has an explanation; together they raise the chance that something structural is wrong rather than a one-off.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 41% a year✓ 54.4% CAGR
Latest reported year was 18.0%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 15%✓ 16.9%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹6 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 22%✓ 24.9%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

7 / 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

4 good · 4 neutral · 3 weak

Market Cap

₹166 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

45.7x

Expensive

Expensive — verify against sector peers

P/B Ratio

6.67x

Rich

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

EPS (TTM)

₹2.69

Profitable

Profitable on a per-share basis

ROE

22.0%

Strong

Strong capital efficiency

ROCE

24.9%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.70x

Moderate

Moderate leverage

Revenue Growth (YoY)

18.0%

Healthy

Healthy top-line growth

Profit Growth (YoY)

2.2%

Modest

Slow profit growth

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

-₹8 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

ROA

13.6%

Good

Assets are working hard

Operating Margin

14.8%

Average

Average margins

Net Margin

9.0%

Average

Average bottom-line conversion

Current Ratio

2.84

Comfortable

Healthy short-term liquidity

52W Range Position

94%

Near high

Near its 52-week high

Technical Snapshot

SMA 20 / SMA 50

110.3 / 81.2

Bullish alignment (short > long)

RSI (14)

74.0

Overbought zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹11 Cr	₹16 Cr	₹33 Cr	₹39 Cr	+54.4%
EBITDA	₹1 Cr	₹3 Cr	₹6 Cr	₹7 Cr	+96.0%
EBITDA Margin	8.2%	17.8%	17.1%	16.9%	—
PAT (Net Profit)	₹0 Cr	₹2 Cr	₹4 Cr	₹4 Cr	+184.5%
EPS	₹0.12	₹1.19	₹2.63	—	—
ROE	2.1%	17.7%	21.7%	18.5%	—
ROCE	6.9%	27.8%	30.6%	24.9%	—
Total Debt	₹3 Cr	₹3 Cr	₹5 Cr	₹12 Cr	+61.1%
Free Cash Flow	-₹0 Cr	₹0 Cr	-₹4 Cr	-₹6 Cr	—

🟢 Revenue has grown at 54.4% a year over 3 years.

🟢 EBITDA has grown at 96.0% a year over 3 years.

🟢 EBITDA Margin has risen from 8.2% to 16.9% over 3 years (+8.6 pts).

🟢 PAT (Net Profit) has grown at 184.5% a year over 3 years.

🟢 ROE has risen from 2.1% to 18.5% over 3 years (+16.4 pts).

🟢 ROCE has risen from 6.9% to 24.9% over 3 years (+17.9 pts).

🔴 Total Debt has grown at 61.1% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹37 Cr

Total Liabilities

₹18 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

-₹6 Cr

Capex

-₹0 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

74.4%

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 mixed5 general

Autofurnish Limited 52 Week High Streak: Streak, Valuation

Univest, 13 Oct

Strong debut! Autofurnish share price lists at ₹43 on BSE SME, up 5% from SME IPO price

Livemint, 29 MayPrice 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.

Autofurnish Limited Share Price - Live AFLTD Stock Price & Chart

Upstox, 28 May

Autofurnish AGM: All resolutions pass with 100% votes in favour

scanx.trade, 25 Sept

Autofurnish IPO opens today. Check GMP, price band, subscription and other details

The Economic Times, 21 May

Autofurnish Limited Upper Circuit Today: Price, Data and Peers

Univest, 08 Sept

Watch Items

Trading very close to its 52-week high — momentum-driven entries here carry more mean-reversion risk.
Cross-check against the company's latest quarterly filing / investor presentation before acting.
RSI is in overbought territory — momentum entries here carry more short-term pullback risk.

DalalBaazaar Thesis

StrongBusiness Quality · Growth · Profitability

MiddlingFinancial Health

WeakValuation · Risk

Points for each in the Score ↑

Good business at a fair price

A sound business at a reasonable valuation. Suitable for a long-term holding, with the valuation and the direction of margins worth watching rather than the business itself. 3 high-severity red flags sit above this conclusion and should be read first.

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