AKG Exim Limited

Industrials — Industrial Distribution · NSE

₹9.50−₹0.01 (−0.11%)

DalalBaazaar Score

39 / 100

🔴 Weak

Verdict

CAUTION

Risk

Moderate

Driven by micro-cap size, which brings thin liquidity, a very high earnings multiple, which leaves little margin for disappointment.

In simple words: The business is earning a fairly low return on the money invested in it, but sales are shrinking. Valuation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:09 pm

Caution warranted. Multiple fundamental metrics — flagged in red below — point to either valuation stretch, leverage risk, or weakening profitability. This doesn't mean avoid the stock outright, but it does mean the burden of proof is on the growth story to justify the current price.

Understanding the Business

Company site ↗

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

What does this company do?

AKG Exim Limited engages in the commodity trading business in India and rest of Asia.

IndustryIndustrial Distribution

SectorIndustrials

Annual revenue₹85 Cr

How does it make money?

Turns over ₹85 Cr a year. Of every ₹100 of sales, about ₹0 reaches shareholders as profit, with ₹0 left at the operating level before interest, tax and depreciation.

EBITDA margin0.4%

Net margin0.4%

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.

LARSEN & TOUBRO LTD.P/E 30.1x · ROE 15.2%

SIEMENS LTDP/E 88.8x · ROE 10.5%

ABB INDIA LIMITEDP/E 92.6x · ROE 19.1%

What is its competitive advantage?Little sign of one

Returns on capital of 2.3% 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.

ROCE2.3%

ROE0.6%

Peer median ROE15.2%

What has been driving growth?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved -62% while net margin moved -66% 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-62%

Margin effect-66%

DalalBaazaar Score

39/ 100

Weak

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 27.4% a year
✗ Profit has declined at 49.5% a year

Quality vs. Valuation

Company Quality

37/ 100

Weak

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

Valuation

39/ 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

79.2x

3Y Median

35.7x

40 monthly readings · mean 41.2x · range 22.1x–97.4x

Sector Median

88.8x

median of 3 sector peers

⚠️Current valuation is approximately 122% above its 3y median of 35.7x. Paying more than usual needs a reason — faster growth, a better balance sheet, or a re-rating you believe in.

🟡Against its sector it is priced broadly in line with the peer median of 88.8x.

vs. its own history

Expensive

35.7x median over 40 months · +122%

vs. sector peers

Fair

88.8x median of 3 peers · -11%

vs. generic bands

Expensive

Above 35x

P/E (Trailing)

79.2x

P/B

0.56x

EV/EBITDA

107.7x

PEG

1.58

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well4

Debt is being paid down
Total debt is down 53% over 3 years.
Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.
Very low debt
Debt/Equity of 0.11x leaves the balance sheet with plenty of headroom.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention3

Return on equity is falling
ROE has dropped from 5.0% to 0.6% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 7.8% to 2.3% — often a sign of competition or overexpansion.
Valuation above its historical average
At 79.2x the stock trades 122% above its own median of 35.7x.

Red Flags

2 items require attention · 1 high · 1 watch

🔴Thin interest coverageFinancial
Operating profit covers interest only 1.6x — little room if earnings dip.
🟡Profit is decliningFinancial
Net profit is down 87% over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Deleveraging frees up earnings
Debt is down 53% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
Self-funding with balance-sheet headroom
Positive free cash flow of ₹4 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 17.4x 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 122% 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.
Returns on shareholder capital are falling
ROE has dropped from 5.0% to 0.6%. 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 -2%✓ 0.4%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA falls below 3x✗ 17.4x
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✗ 1.6x
How much operating profit can fall before interest stops being comfortably covered.
4Free cash flow remains positive✓ ₹4 Cr
Profit that never becomes cash eventually stops being profit.
5ROCE stays above 8%✗ 2.3%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

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

5 good · 2 neutral · 4 weak

Market Cap

₹30 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

79.2x

Expensive

Expensive — verify against sector peers

P/B Ratio

0.56x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹0.12

Profitable

Profitable on a per-share basis

ROE

0.6%

Weak

Weak capital efficiency

ROCE

2.3%

Weak

Low return on total capital employed

Debt/Equity

0.11x

Low

Conservative leverage

Revenue Growth (YoY)

-27.4%

Shrinking

Sales are contracting

Profit Growth (YoY)

50.0%

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

₹4 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

CMP

₹9.5

Operating Margin

1.3%

Weak

Thin margins leave little room for error

Net Margin

0.4%

Weak

Very little revenue reaches the bottom line

Current Ratio

7.62

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.53

Defensive

Steadier than the market

52W Range Position

20%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

9.7 / 9.5

Bullish alignment (short > long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

46.7

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹221 Cr	₹184 Cr	₹133 Cr	₹85 Cr	-27.4%
EBITDA	₹4 Cr	₹4 Cr	₹2 Cr	₹0 Cr	-56.6%
EBITDA Margin	1.8%	1.9%	1.6%	0.4%	—
PAT (Net Profit)	₹3 Cr	₹2 Cr	₹1 Cr	₹0 Cr	-49.5%
EPS	₹0.81	₹0.51	₹0.27	₹0.1	-50.2%
ROE	5.0%	3.1%	1.6%	0.6%	—
ROCE	7.8%	6.0%	3.9%	2.3%	—
Total Debt	₹12 Cr	₹14 Cr	₹11 Cr	₹6 Cr	-22.4%
Free Cash Flow	-₹19 Cr	-₹5 Cr	₹1 Cr	₹4 Cr	—

🔴 Revenue has shrunk at 27.4% a year over 3 years.

🔴 EBITDA has shrunk at 56.6% a year over 3 years.

🔴 EBITDA Margin has fallen from 1.8% to 0.4% over 3 years (-1.4 pts).

🔴 PAT (Net Profit) has shrunk at 49.5% a year over 3 years.

🔴 EPS has shrunk at 50.2% a year over 3 years.

🔴 ROE has fallen from 5.0% to 0.6% over 3 years (-4.4 pts).

🔴 ROCE has fallen from 7.8% to 2.3% over 3 years (-5.5 pts).

🟢 Total Debt has shrunk at 22.4% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹19 Cr to ₹4 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹62 Cr

Total Liabilities

₹8 Cr

Total Debt

₹6 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

₹4 Cr

Capex

—

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 negative5 general

AKG Exim promoter pledges 38 lakh shares to ESAAR India

scanx.trade, 13 JulOwnership

🔴Potentially negativePromoter selling or pledging is a signal worth understanding, though the reason is often personal rather than about the business.

AKG Exim Ltd. Key Financial Ratios – Valuation, Profitability & More

Value Research, 03 Sept

Akg Exim vs Nifty 50: Share Price Performance Compared

Univest, 07 Sept

Compare with APPLE FINANCE

Equitymaster, 08 Oct

AKG Exim Ltd reports Secretarial Auditor Kundan Kumar Mishra's demise

scanx.trade, 04 Aug

Akg Exim Share Price: Buy or Sell

Univest, 04 Sept

Watch Items

Revenue growth is negative (-27.4%) 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

🔴Business QualityWeak5.9/20

🟢Financial HealthStrong14.7/20

🔴GrowthWeak2.4/20

🔴ProfitabilityWeak4.6/15

🔴ValuationDemanding6.2/15

🟡RiskModerate5.2/10

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.

This thesis breaks if

✓EBITDA margin holds above -2%0.4%
✗Debt / EBITDA falls below 3x17.4x
✗Interest cover stays above 3x1.6x
✓Free cash flow remains positive₹4 Cr
✗ROCE stays above 8%2.3%