Alicon Castalloy Limited

Industrials — Metal Fabrication · NSE

₹856.00−₹7.80 (−0.90%)

DalalBaazaar Score

45 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

Moderate

Driven by micro-cap size, which brings thin liquidity.

In simple words: The business is earning a fairly low return on the money invested in it, with both sales and profits growing well. Thin profit margins are the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:09 pm

Mixed / neutral. No major red flags jump out, but nothing here screams "obviously cheap" either. This is a name that needs a peer comparison and a view on near-term earnings triggers before sizing a position.

Understanding the Business

Company site ↗

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

What does this company do?

Alicon Castalloy Limited, together with its subsidiaries, manufactures and sells aluminium castings in India.

IndustryMetal Fabrication

SectorIndustrials

Employees753

Annual revenue₹1,707 Cr

How does it make money?

Turns over ₹1,707 Cr a year. Of every ₹100 of sales, about ₹2 reaches shareholders as profit, with ₹12 left at the operating level before interest, tax and depreciation. Each of its 753 employees supports ₹2.27 Cr of revenue a year, the signature of a capital- or asset-led business.

EBITDA margin12.2%

Net margin2.0%

Revenue / employee₹2.27 Cr

Who are its competitors?

The closest listed comparisons in its industry are TATA STEEL LIMITED, JSW STEEL LIMITED, HINDALCO INDUSTRIES LTD, VEDANTA LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

TATA STEEL LIMITEDP/E 19.8x · ROE 10.8%

JSW STEEL LIMITEDP/E 12.0x · ROE 24.7%

HINDALCO INDUSTRIES LTDP/E 12.3x · ROE 12.0%

VEDANTA LIMITEDP/E 10.4x · ROE 18.7%

What is its competitive advantage?Little sign of one

Returns on capital of 11.5% 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.

ROCE11.5%

ROE5.5%

Peer median ROE18.7%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +28% while net margin moved -48% 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+28%

Margin effect-48%

DalalBaazaar Score

45/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ ROE of 5.5% is weak
✗ ROE has fallen by 5.1 points over the period

Quality vs. Valuation

Company Quality

44/ 100

Weak

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

Valuation

35/ 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

38.3x

3Y Median

27.2x

40 monthly readings · mean 28.8x · range 17.4x–41.4x

Sector Median

12.2x

median of 4 sector peers

⚠️Current valuation is approximately 41% above its 3y median of 27.2x. 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 215% above the peer median of 12.2x.

vs. its own history

Expensive

27.2x median over 40 months · +41%

vs. sector peers

Expensive

12.2x median of 4 peers · +215%

vs. generic bands

Expensive

Above 35x

P/E (Trailing)

38.3x

P/B

2.23x

EV/EBITDA

8.4x

PEG

1.64

Dividend Yield

0.70%

What's Good / What's Bad

🟢 What's Going Well2

Cash generation is improving
Free cash flow is up 1501% over 3 years.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention3

Return on equity is falling
ROE has dropped from 10.5% to 5.5% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 14.8% to 11.5% — often a sign of competition or overexpansion.
Valuation above its historical average
At 38.3x the stock trades 41% above its own median of 27.2x.

Red Flags

1 item require attention · 1 watch

🟡Profit is decliningFinancial
Net profit is down 33% over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

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 price already assumes success
The stock trades 41% 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 10.5% to 5.5%. 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 10%✓ 12.2%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Interest cover stays above 3x✗ 2.1x
How much operating profit can fall before interest stops being comfortably covered.
3Revenue growth stays above 6% a year✓ 8.5% CAGR
Latest reported year was 38.3%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
4Free cash flow remains positive✓ ₹91 Cr
Profit that never becomes cash eventually stops being profit.
5Debt / EBITDA stays below 2x✓ 1.7x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.

Investment Checklist

8 / 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 · 5 neutral · 1 weak

Market Cap

₹1,398 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

38.3x

Fair

Fairly valued against the generic band

P/B Ratio

2.23x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹22.34

Profitable

Profitable on a per-share basis

ROE

5.5%

Weak

Weak capital efficiency

ROCE

11.5%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.56x

Low

Conservative leverage

Revenue Growth (YoY)

38.3%

Healthy

Healthy top-line growth

Profit Growth (YoY)

23.4%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.70%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

₹91 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

CMP

₹856

P/E (Forward)

10.8x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

4.9%

Weak

Thin margins leave little room for error

Net Margin

1.9%

Weak

Very little revenue reaches the bottom line

Current Ratio

1.11

Adequate

Adequate, but no real cushion

Beta (vs Nifty)

0.51

Defensive

Steadier than the market

52W Range Position

62%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

812.5 / 753.0

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

70.3

Overbought zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹1,337 Cr	₹1,496 Cr	₹1,642 Cr	₹1,707 Cr	+8.5%
EBITDA	₹156 Cr	₹197 Cr	₹194 Cr	₹208 Cr	+10.0%
EBITDA Margin	11.7%	13.2%	11.8%	12.2%	—
PAT (Net Profit)	₹51 Cr	₹61 Cr	₹46 Cr	₹34 Cr	-12.5%
EPS	₹31.92	₹37.76	₹28.12	₹21.01	-13.0%
ROE	10.5%	11.1%	7.8%	5.5%	—
ROCE	14.8%	16.7%	13.9%	11.5%	—
Total Debt	₹301 Cr	₹331 Cr	₹366 Cr	₹354 Cr	+5.6%
Free Cash Flow	₹6 Cr	₹48 Cr	₹22 Cr	₹91 Cr	+152.0%

🟢 Revenue has grown at 8.5% a year over 3 years.

🟢 EBITDA has grown at 10.0% a year over 3 years.

🟡 EBITDA Margin has held roughly flat at 12.2% over 3 years.

🔴 PAT (Net Profit) has shrunk at 12.5% a year over 3 years.

🔴 EPS has shrunk at 13.0% a year over 3 years.

🔴 ROE has fallen from 10.5% to 5.5% over 3 years (-5.1 pts).

🔴 ROCE has fallen from 14.8% to 11.5% over 3 years (-3.3 pts).

🔴 Total Debt has grown at 5.6% a year over 3 years.

🟢 Free Cash Flow has grown at 152.0% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹1,442 Cr

Total Liabilities

₹813 Cr

Total Debt

₹354 Cr

Cash & Equivalents

₹19 Cr

Operating Cash Flow

₹239 Cr

Capex

-₹147 Cr

Shareholding (proxy)

Institutional Holding

10.5%

Insider Holding

71.6%

Corporate Actions

Dividend Rate

₹6

Ex-Dividend Date

21 Sept 2026

Peer Comparison

Company	P/E	ROE
TATA STEEL LIMITED	19.8x	10.8%
JSW STEEL LIMITED	12.0x	24.7%
HINDALCO INDUSTRIES LTD	12.3x	12.0%
VEDANTA LIMITED	10.4x	18.7%

Recent News

2 positive2 mixed2 general

Alicon Castalloy Ltd. Upper Circuit Today: Price, Data and Peers

Univest, 30 Sept

Alicon Castalloy declares ₹3 per share final dividend for FY26

scanx.trade, 17 AugCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

Alicon Castalloy Share Price: Buy or Sell

Univest, 04 Sept

Alicon Castalloy Ltd Upgraded to Buy on Improved Technicals and Attractive Valuation

MarketsMojo, 11 OctAnalyst view

🟢Potentially positiveAn analyst opinion changing, which moves the price without changing the business.

Board of Alicon Castalloy approves capex of Rs 125 cr for setting up new plant

Business Standard, 31 JulCapacity

🟡Mixed / dependsCapacity additions can raise revenue over two to three years, but the capital spend usually pressures free cash flow first. Worth checking whether the capex is funded from operations or from borrowing.

Alicon Castalloy Q1 FY27: Revenue crosses ₹500 crore, PAT up 23% YoY

scanx.trade, 13 AugResults

🟡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.
RSI is in overbought territory — momentum entries here carry more short-term pullback risk.

DalalBaazaar Thesis

🟡Business QualityAdequate9/20

🟡Financial HealthAdequate11.7/20

🔴GrowthWeak7.7/20

🔴ProfitabilityWeak4.6/15

🔴ValuationDemanding6.1/15

🟡RiskModerate6.2/10

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.

This thesis breaks if

✓EBITDA margin holds above 10%12.2%
✗Interest cover stays above 3x2.1x
✓Revenue growth stays above 6% a year8.5% CAGR
✓Free cash flow remains positive₹91 Cr
✓Debt / EBITDA stays below 2x1.7x