Alufluoride Limited

Basic Materials — Chemicals · NSE

₹597.00−₹13.45 (−2.20%)

DalalBaazaar Score

76 / 100

🟢 Good

Verdict

REASONABLE

Risk

Moderate

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

In simple words: Strong business and financial position, but sales are shrinking. The direction of profits is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:00 pm

Understanding the Business

Company site ↗

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

What does this company do?

Alufluoride Limited manufactures and sells aluminum fluoride and related products for aluminum smelters in India.

IndustryChemicals

SectorBasic Materials

Employees102

Annual revenue₹209 Cr

How does it make money?

Turns over ₹209 Cr a year. Of every ₹100 of sales, about ₹12 reaches shareholders as profit, with ₹22 left at the operating level before interest, tax and depreciation. Each of its 102 employees supports ₹2.05 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹2.05 Cr

Who are its competitors?

The closest listed comparisons in its industry are PIDILITE INDUSTRIES LTD, SRF LTD, UPL 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?The numbers suggest a real one

ROCE has stayed above 15% in every year available and stands at 21.9%. Returns that high normally get competed away; when they persist, something is protecting them, and its ROE of 20.0% against a peer median of 15.4% is consistent with that. What that something is — brand, scale, switching costs, regulation — the accounts cannot tell you.

Peer median ROE15.4%

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 +53% while net margin moved +28% 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+53%

Margin effect+28%

DalalBaazaar Score

76/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of 0.42 — historically steadier than the index
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal

Quality vs. Valuation

Company Quality

82/ 100

Excellent

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

Valuation

74/ 100

Cheap

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

A good business currently available at an undemanding price — the combination this framework is built to look for.

Historical Valuation

Current P/E

18.8x

Sector Median

33.8x

median of 3 sector peers

🟢Against its sector it trades 44% below the peer median of 33.8x.

vs. its own history

Not enough price and earnings history

vs. sector peers

Cheap

33.8x median of 3 peers · -44%

vs. generic bands

Fair

15x–35x

EV/EBITDA

11.2x

PEG

0.75

What's Good / What's Bad

🟢 What's Going Well3

Cash generation is improving
Free cash flow is up 104% over 3 years.
High return on capital employed
ROCE of 21.9% 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

1 item require attention · 1 watch

🟡Debt is increasingFinancial
Total debt is up 46% over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 21.9% 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.
Cheaper than its peers
It trades 44% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Self-funding with balance-sheet headroom
Positive free cash flow of ₹11 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?

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 11% a year✓ 15.3% CAGR
Latest reported year was -39.3%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 20%✓ 22.0%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✓ ₹11 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 1.0x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 19%✓ 21.9%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

8 / 10 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

Price history

Quick Metrics

5 good · 4 neutral · 2 weak

Market Cap

₹467 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

18.8x

Fair

Fairly valued against the generic band

P/B Ratio

3.72x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹31.7

Profitable

Profitable on a per-share basis

ROE

20.0%

Strong

Strong capital efficiency

ROCE

21.9%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.36x

Low

Conservative leverage

Revenue Growth (YoY)

-39.3%

Shrinking

Sales are contracting

Profit Growth (YoY)

-11.6%

Falling

Profits are shrinking

Dividend Yield

0.67%

Modest

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

Free Cash Flow

₹11 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

7.2%

Average

Average margins

Net Margin

12.9%

Good

Strong bottom-line conversion

Current Ratio

3.52

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.42

Defensive

Steadier than the market

52W Range Position

62%

Mid-range

Technical Snapshot

RSI (14)

56.5

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹136 Cr	₹165 Cr	₹189 Cr	₹209 Cr	+15.3%
EBITDA	₹28 Cr	₹34 Cr	₹37 Cr	₹46 Cr	+18.0%
EBITDA Margin	20.5%	20.8%	19.8%	22.0%	—
PAT (Net Profit)	₹13 Cr	₹18 Cr	₹18 Cr	₹25 Cr	+25.2%
EPS	₹16.39	₹22.59	₹23.13	₹32.14	+25.2%
ROE	18.9%	20.9%	17.8%	20.0%	—
ROCE	21.6%	25.3%	19.8%	21.9%	—
Total Debt	₹31 Cr	₹25 Cr	₹30 Cr	₹45 Cr	+13.3%
Free Cash Flow	₹6 Cr	₹26 Cr	-₹2 Cr	₹11 Cr	+26.8%

🟢 Revenue has grown at 15.3% a year over 3 years.

🟢 EBITDA has grown at 18.0% a year over 3 years.

🟢 EBITDA Margin has risen from 20.5% to 22.0% over 3 years (+1.5 pts).

🟢 PAT (Net Profit) has grown at 25.2% a year over 3 years.

🟢 EPS has grown at 25.2% a year over 3 years.

🟢 ROE has risen from 18.9% to 20.0% over 3 years (+1.1 pts).

🟡 ROCE has held roughly flat at 21.9% over 3 years.

🔴 Total Debt has grown at 13.3% a year over 3 years.

🟢 Free Cash Flow has grown at 26.8% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹194 Cr

Total Liabilities

₹68 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

₹47 Cr

Capex

-₹35 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

64.5%

Corporate Actions

Dividend Rate

₹4

Ex-Dividend Date

03 Jul 2026

Peer Comparison

Company	P/E	ROE
PIDILITE INDUSTRIES LTD	57.8x	24.4%
SRF LTD	33.8x	15.4%
UPL LIMITED	21.5x	6.1%

Recent News

2 mixed1 negative3 general

Alufluoride Limited (ALUFLUOR) Share Price NSE

TechGraph, 07 Oct

ALUFLUOR Stock Price and Chart — NSE:ALUFLUOR

TradingView, 17 Aug

Alufluoride Share Price Rises 9.89% to Rs 540: Analysis

Univest, 18 SeptPrice 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.

Alufluoride Q1 Results: Net profit drops 9.6% YoY to ₹287 lakh

scanx.trade, 11 AugResults

🔴Potentially negativeReported deterioration, which feeds the growth and margin inputs on this page directly.

Alufluoride Ltd. Share Price Declines: A 10.47% Drop Today

Univest, 29 JulPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

Alufluoride cuts output at Visakhapatnam plant

scanx.trade, 23 May

Watch Items

Revenue growth is negative (-39.3%) 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

StrongBusiness Quality · Financial Health · Growth · Profitability

MiddlingValuation · Risk

Points for each in the Score ↑

Attractive on both counts

A good business currently available at an undemanding price — the combination this framework exists to look for. The work left is qualitative: whether the advantage the numbers imply is one you can identify and expect to last.

All 5 tripwires holding · see Key things to watch ↑