Airo Lam Limited

Consumer Cyclical — Furnishings, Fixtures & Appliances · NSE

₹87.95−₹0.14 (−0.16%)

DalalBaazaar Score

43 / 100

🟡 Moderate

Verdict

CAUTION

Risk

High

Driven by moderate debt load, micro-cap size, which brings thin liquidity, falling profits.

In simple words: The business is earning a fairly low return on the money invested in it, though profits are falling even as sales grow. The direction of profits is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:59 pm

Understanding the Business

Company site ↗

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

What does this company do?

Airo Lam Limited engages in the production, processing, and marketing of decorative laminate sheets and plywood in India.

IndustryFurnishings, Fixtures & Appliances

SectorConsumer Cyclical

Employees278

Annual revenue₹242 Cr

How does it make money?

Turns over ₹242 Cr a year. Of every ₹100 of sales, about ₹2 reaches shareholders as profit, with ₹8 left at the operating level before interest, tax and depreciation. Each of its 278 employees supports ₹87.2 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹87.2 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 14.0% 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 +22% while net margin moved -42% 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+22%

Margin effect-42%

DalalBaazaar Score

43/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Revenue CAGR of only 6.7% — barely ahead of inflation
✗ Profit has declined at 10.8% a year
✗ Profit is compounding slower than revenue — margins are being squeezed as the business grows
✗ Profit fell 93.3% in the latest year

Quality vs. Valuation

Company Quality

39/ 100

Weak

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

Valuation

67/ 100

Fair

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

25.1x

3Y Median

30.3x

40 monthly readings · mean 34.2x · range 17.0x–57.6x

Sector Median

68.5x

median of 3 sector peers

🟢Current valuation is approximately 17% below its 3y median of 30.3x. 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 63% below the peer median of 68.5x.

vs. its own history

Fair

30.3x median over 40 months · -17%

vs. sector peers

Cheap

68.5x median of 3 peers · -63%

vs. generic bands

Fair

15x–35x

EV/EBITDA

11.5x

PEG

—

What's Good / What's Bad

🟢 What's Going Well2

Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 11.6% to 6.7% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 16.1% to 14.0% — often a sign of competition or overexpansion.

Red Flags

2 items require attention · 2 watch

🟡Debt is increasingFinancial
Total debt is up 30% over 3 years.
🟡Profit is decliningFinancial
Net profit is down 29% over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Cheaper than its peers
It trades 63% 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?

The debt load needs earnings to hold up
Debt is 4.4x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
Growth barely outpaces inflation
Revenue compounding at 6.7% a year is close to the rate prices rise, so the business is gaining little ground in real terms. That leaves the share price dependent on a re-rating rather than on earnings growth.
Returns on shareholder capital are falling
ROE has dropped from 11.6% to 6.7%. 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.
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%✓ 7.7%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA falls below 3x✗ 4.4x
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✗ 2.0x
How much operating profit can fall before interest stops being comfortably covered.
4Revenue growth stays above 5% a year✓ 6.7% CAGR
Latest reported year was 9.2%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
5Free cash flow remains positive✓ ₹17 Cr
Profit that never becomes cash eventually stops being profit.

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 · 7 neutral · 2 weak

Market Cap

₹132 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

25.1x

Fair

Fairly valued against the generic band

P/B Ratio

1.68x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹3.5

Profitable

Profitable on a per-share basis

ROE

7.0%

Weak

Weak capital efficiency

ROCE

14.0%

Moderate

Moderate return on the capital in the business

Debt/Equity

1.06x

Moderate

Moderate leverage

Revenue Growth (YoY)

9.2%

Modest

Modest growth

Profit Growth (YoY)

-93.3%

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

₹9 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

ROA

4.2%

Average

Average asset productivity

Operating Margin

3.4%

Weak

Thin margins leave little room for error

Net Margin

2.2%

Weak

Very little revenue reaches the bottom line

Current Ratio

1.33

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

-0.52

Defensive

Steadier than the market

52W Range Position

29%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

88.9 / 88.4

Bullish alignment (short > long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

40.8

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹199 Cr	₹206 Cr	₹210 Cr	₹242 Cr	+6.7%
EBITDA	₹17 Cr	₹19 Cr	₹9,461 Cr	₹19 Cr	+3.9%
EBITDA Margin	8.3%	9.2%	4507.8%	7.7%	—
PAT (Net Profit)	₹7 Cr	₹8 Cr	₹3 Cr	₹5 Cr	-10.8%
EPS	₹4.93	₹5.23	₹1.94	—	—
ROE	11.6%	11.1%	4.0%	6.7%	—
ROCE	16.1%	17.9%	9450.3%	14.0%	—
Total Debt	₹63 Cr	₹79 Cr	₹90 Cr	₹82 Cr	+9.2%
Free Cash Flow	-₹7 Cr	-₹13 Cr	-₹4 Cr	₹17 Cr	—

🟢 Revenue has grown at 6.7% a year over 3 years.

🟢 EBITDA has grown at 3.9% a year over 3 years.

🟡 EBITDA Margin has held roughly flat at 7.7% over 3 years.

🔴 PAT (Net Profit) has shrunk at 10.8% a year over 3 years.

🔴 ROE has fallen from 11.6% to 6.7% over 3 years (-4.9 pts).

🔴 ROCE has fallen from 16.1% to 14.0% over 3 years (-2.1 pts).

🔴 Total Debt has grown at 9.2% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹7 Cr to ₹17 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹226 Cr

Total Liabilities

₹149 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

₹19 Cr

Capex

-₹3 Cr

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 mixed5 general

Airo Lam Share Price: Buy or Sell

Univest, 04 Sept

Airo Lam to sell 40% stake in associate for ₹36 lakh

scanx.trade, 21 Jul

Airo Lam vs Nifty 50: Share Price Performance Compared

Univest, 07 Sept

AIRO LAM LIMITED Share Price - Live NSE: AIROLAM Stock Price & Chart

Upstox, 27 Oct

Airo Lam (NSEI:AIROLAM) - Stock Analysis

Simply Wall Street, 02 Dec

AIROLAM.NS Jun 2026 Earnings: ₹1.06 EPS and ₹67.54 Crore Revenue as Shares Slip 3.61% - Subscription Growth Report

https://www.siam.in/, 04 OctResults

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

Watch Items

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

DalalBaazaar Thesis

MiddlingBusiness Quality · Financial Health · Valuation · Risk

WeakGrowth · Profitability

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.

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