AI Champdany Industries Limited

Consumer Cyclical — Textile Manufacturing · BSE

₹19.45+₹0.24 (+1.25%)

DalalBaazaar Score

23 / 100

🔴 Weak

Verdict

HIGH RISK

Risk

Very High

Driven by negative shareholders' equity — the company owes more than it owns, micro-cap size, which brings thin liquidity.

In simple words: The company owes more than it owns — years of losses have wiped out its net worth, with both sales and profits growing well. Solvency — whether it can keep funding itself at all — 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 AI Champdany Industries Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

AI Champdany Industries Limited manufactures and trades in jute products in India and internationally. It operates in two segments, Jute/Jute Diversified Products and Services, and Flax Products.

IndustryTextile Manufacturing

SectorConsumer Cyclical

Annual revenue₹210 Cr

How does it make money?

Turns over ₹210 Cr a year. Of every ₹100 of sales, about ₹1 reaches shareholders as profit, with ₹3 left at the operating level before interest, tax and depreciation.

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.

Compared side by side in Peers ↓

What is its competitive advantage?Little sign of one

Returns on capital of 5.6% 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 ROE25.9%

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +334% while net margin moved -97% 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+334%

Margin effect-97%

DalalBaazaar Score

23/ 100

Weak

Weighted across six categories. Every point is explained below.

✗ Shareholders' equity is negative — accumulated losses exceed the capital in the business

Quality vs. Valuation

Company Quality

24/ 100

Weak

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

Valuation

30/ 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

13.4x

3Y Median

10.7x

40 monthly readings · mean 12.2x · range 4.2x–39.0x

Sector Median

69.2x

median of 4 sector peers

⚠️Current valuation is approximately 25% above its 3y median of 10.7x. 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 81% below the peer median of 69.2x.

vs. its own history

Expensive

10.7x median over 40 months · +25%

vs. sector peers

Cheap

69.2x median of 4 peers · -81%

vs. generic bands

N/A

Multiples unreliable — equity base is negative

EV/EBITDA

16.5x

PEG

—

What's Good / What's Bad

🟢 What's Going Well1

Margins are improving
EBITDA margin is up from -67.5% to 3.2% over 3 years.

🔴 What Needs Attention0

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

Red Flags

4 items require attention · 3 high · 1 watch

🔴Negative shareholders' equityFinancial
Liabilities exceed assets — accumulated losses have wiped out the company's net worth.
🔴Debt has risen sharplyFinancial
Total debt is up 477% over 3 years, from ₹9 Cr to ₹52 Cr.
🔴Free cash flow negative for 4 yearsFinancial
The business has not covered its capital spending from operations for several years running, which has to be funded externally.
🟡Profit is decliningFinancial
Net profit is down 88% over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from -67.5% to 3.2%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Cheaper than its peers
It trades 81% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.

🔴 Bear CaseWhat could go wrong?

Solvency comes before everything else
Liabilities exceed assets. Until net worth is rebuilt, the equity is a claim on a business that owes more than it owns, and further losses or a funding squeeze can leave shareholders with nothing.
The debt load needs earnings to hold up
Debt is 7.8x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
The price already assumes success
The stock trades 25% 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.
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✓ 63.1% CAGR
Latest reported year was 114.5%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 1%✓ 3.2%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA falls below 3x✗ 7.8x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
4Free cash flow remains positive✗ -₹8 Cr
Profit that never becomes cash eventually stops being profit.
5Valuation vs its own median of 10.7x✗ 13.4x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

6 / 10 checks passed

✗ Shareholders' equity is positive (assets exceed liabilities)
✗ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✓ 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

5 good · 4 neutral · 2 weak

Market Cap

₹60 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

13.4x

Cheap

Cheap against the generic band

P/B Ratio

Not available

No data

Source didn't return this field

EPS (TTM)

₹1.45

Profitable

Profitable on a per-share basis

ROE

Not meaningful

Negative equity

Return on equity can't be read when equity itself is negative

ROCE

5.6%

Distorted

Distorted by the negative net worth — read this alongside the solvency flag, not on its own

Debt/Equity

Not meaningful

Negative equity

Shareholders' equity is negative, so this ratio can't be read

Revenue Growth (YoY)

114.5%

Healthy

Healthy top-line growth

Profit Growth (YoY)

102.9%

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

₹26 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

ROA

1.0%

Weak

Assets generate little profit

Operating Margin

34.3%

Good

Healthy core-business profitability

Net Margin

0.8%

Weak

Very little revenue reaches the bottom line

Current Ratio

1.00

Adequate

Adequate, but no real cushion

Beta (vs Nifty)

0.38

Defensive

Steadier than the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

19.0 / 23.5

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

56.6

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹48 Cr	₹40 Cr	₹90 Cr	₹210 Cr	+63.1%
EBITDA	-₹33 Cr	-₹43 Cr	-₹58 Cr	₹7 Cr	—
EBITDA Margin	-67.5%	-109.3%	-64.7%	3.2%	—
PAT (Net Profit)	₹15 Cr	-₹39 Cr	-₹61 Cr	₹2 Cr	-50.7%
EPS	₹4.81	₹-12.87	₹-19.89	₹0.54	-51.8%
ROE	19.1%	-97.1%	—	—	—
ROCE	7.7%	-23.6%	-60.4%	5.6%	—
Total Debt	₹9 Cr	₹22 Cr	₹44 Cr	₹52 Cr	+79.3%
Free Cash Flow	-₹13 Cr	-₹29 Cr	-₹26 Cr	-₹8 Cr	—

🟢 Revenue has grown at 63.1% a year over 3 years.

🟢 EBITDA has turned positive, from -₹33 Cr to ₹7 Cr.

🟢 EBITDA Margin has risen from -67.5% to 3.2% over 3 years (+70.7 pts).

🔴 PAT (Net Profit) has shrunk at 50.7% a year over 3 years.

🔴 EPS has shrunk at 51.8% a year over 3 years.

🔴 ROCE has fallen from 7.7% to 5.6% over 3 years (-2.1 pts).

🔴 Total Debt has grown at 79.3% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹188 Cr

Total Liabilities

₹208 Cr

Cash & Equivalents

₹1 Cr

Operating Cash Flow

-₹1 Cr

Capex

-₹7 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

86.6%

Corporate Actions

Ex-Dividend Date

14 Jul 2008

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

1 mixed5 general

AI Champdany Industries seeks approval to retain independent director past 75

scanx.trade, 24 Sept

AI Champdany Industries Ltd. Peer Comparison – Compare with Others

Value Research, 01 Sept

AI Champdany Industries closes trading window from October 1

scanx.trade, 28 Sept

AI Champdany Industries Ltd. Financials – Balance Sheet, Profit & Loss, Cash Flow

Value Research, 01 Sept

Shyamkamal Investments reports standalone net profit of Rs 0.39 crore in the June 2026 quarter

Business Standard, 14 AugResults

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

AI CHAMPDANY INDUSTRIES LTD. Share Price - Live AICHAMP Stock Price & Chart

Upstox, 05 Apr

Watch Items

Trading very close to its 52-week low — worth checking whether this reflects a temporary setback or a structural problem.
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

MiddlingGrowth

WeakBusiness Quality · Financial Health · Profitability · Valuation · Risk

Points for each in the Score ↑

Avoid until solvency is resolved

AI Champdany Industries Limited owes more than it owns. Whatever the operating numbers show, the equity is a residual claim on a business with negative net worth, and that question has to be settled before any of the rest is worth weighing. 3 high-severity red flags sit above this conclusion and should be read first.

3 of 5 tripwires tripped — Debt / EBITDA falls below 3x; Free cash flow remains positive; Valuation vs its own median of 10.7x · see Key things to watch ↑