Amal Ltd

Basic Materials — Chemicals · NSE

₹746.30−₹186.55 (−20.00%)

DalalBaazaar Score

73 / 100

🟢 Good

Verdict

REASONABLE

Risk

Moderate

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

In simple words: Strong business and financial position, with both sales and profits growing well. Nothing on this snapshot stands out as an immediate concern — the usual checks on business quality and management still apply.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:57 pm

Understanding the Business

Company site ↗

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

What does this company do?

Amal Ltd manufactures and markets bulk chemicals in India. It offers oleum, sulphuric acid, Sulphur dioxide, and Sulphur trioxide for use in dyestuff, fertilizer, personal care, petrochemical, pharmaceutical, and textile industries.

IndustryChemicals

SectorBasic Materials

Employees81

Annual revenue₹239 Cr

How does it make money?

Turns over ₹239 Cr a year. Of every ₹100 of sales, about ₹9 reaches shareholders as profit, with ₹15 left at the operating level before interest, tax and depreciation. Each of its 81 employees supports ₹2.96 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹2.96 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?Some evidence

ROCE of 22.3% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

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 +293% while net margin moved -135% 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+293%

Margin effect-135%

DalalBaazaar Score

73/ 100

Good

Weighted across six categories. Every point is explained below.

• P/E of 31.0x already prices in growth
✗ P/B of 7.66x is a steep premium to book

Quality vs. Valuation

Company Quality

84/ 100

Excellent

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

Valuation

45/ 100

Fair

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

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

31.0x

Sector Median

33.8x

median of 3 sector peers

🟡Against its sector it is priced broadly in line with the peer median of 33.8x.

vs. its own history

Not enough price and earnings history

vs. sector peers

Fair

33.8x median of 3 peers · -8%

vs. generic bands

Fair

15x–35x

EV/EBITDA

26.1x

PEG

—

What's Good / What's Bad

🟢 What's Going Well5

Margins are improving
EBITDA margin is up from -8.8% to 14.7% over 3 years.
Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.
Return on equity is rising
ROE has improved from -23.6% to 18.6%.
Return on capital is rising
ROCE has improved from -12.9% to 22.3%.
High return on capital employed
ROCE of 22.3% is the mark of a business that converts capital into profit efficiently.

🔴 What Needs Attention0

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

Red Flags

1 item require attention · 1 high

🔴Receivables growing faster than salesFinancial
Receivables up 364% against revenue up 293% — sales are being booked faster than they are collected.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 22.3% 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.
Margin expansion has further to run
EBITDA margin has risen from -8.8% to 14.7%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.

🔴 Bear CaseWhat could go wrong?

Sales are being booked faster than collected
Receivables are up 364% against revenue up 293%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
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 43% a year✓ 57.8% CAGR
Latest reported year was 104.1%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 13%✓ 14.7%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✓ ₹15 Cr
Profit that never becomes cash eventually stops being profit.
4ROCE stays above 19%✓ 22.3%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

9 / 9 checks passed

✓ Strong return on equity (ROE ≥ 15%)
✓ 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

Price history

Quick Metrics

6 good · 4 neutral · 1 weak

Market Cap

₹923 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

31.0x

Fair

Fairly valued against the generic band

P/B Ratio

7.66x

Rich

Steep premium to book — needs high, durable returns to justify

EPS (TTM)

₹24.11

Profitable

Profitable on a per-share basis

ROE

18.6%

Strong

Strong capital efficiency

ROCE

22.3%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

Not available

No data

Source didn't return this field

Revenue Growth (YoY)

104.1%

Healthy

Healthy top-line growth

Profit Growth (YoY)

77.8%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.20%

Modest

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

Free Cash Flow

₹15 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

15.3%

Good

Healthy core-business profitability

Net Margin

10.3%

Good

Strong bottom-line conversion

Current Ratio

2.48

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.02

Defensive

Steadier than the market

52W Range Position

25%

Mid-range

Technical Snapshot

RSI (14)

55.9

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹61 Cr	₹86 Cr	₹135 Cr	₹239 Cr	+57.8%
EBITDA	-₹5 Cr	₹15 Cr	₹43 Cr	₹35 Cr	—
EBITDA Margin	-8.8%	17.2%	32.0%	14.7%	—
PAT (Net Profit)	-₹16 Cr	₹2 Cr	₹29 Cr	₹22 Cr	—
EPS	₹-15.48	₹1.23	₹23.69	₹18.11	—
ROE	-23.6%	2.4%	29.5%	18.6%	—
ROCE	-12.9%	7.3%	33.8%	22.3%	—
Total Debt	₹35 Cr	₹24 Cr	—	—	—
Free Cash Flow	-₹26 Cr	₹13 Cr	₹46 Cr	₹15 Cr	—

🟢 Revenue has grown at 57.8% a year over 3 years.

🟢 EBITDA has turned positive, from -₹5 Cr to ₹35 Cr.

🟢 EBITDA Margin has risen from -8.8% to 14.7% over 3 years (+23.5 pts).

🟢 PAT (Net Profit) has turned positive, from -₹16 Cr to ₹22 Cr.

🟢 EPS has turned positive, from ₹-15.48 to ₹18.11.

🟢 ROE has risen from -23.6% to 18.6% over 3 years (+42.1 pts).

🟢 ROCE has risen from -12.9% to 22.3% over 3 years (+35.2 pts).

🟢 Free Cash Flow has turned positive, from -₹26 Cr to ₹15 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹154 Cr

Total Liabilities

₹34 Cr

Cash & Equivalents

₹2 Cr

Operating Cash Flow

₹22 Cr

Capex

-₹7 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

71.3%

Corporate Actions

Dividend Rate

₹1.5

Ex-Dividend Date

31 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

1 positive2 mixed3 general

Amal Share Price Fall: Price Action and Fundamentals

Univest, 16 OctPrice 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.

2,000% returns in 10 yrs! This multibagger chemical stock jumps 16% amid huge trading volume | Check share performance

Livemint, 13 Oct

AMAL Stock Price and Chart — NSE:AMAL

TradingView, 18 Aug

Amal hits the roof as Q1 PAT jumps 78% YoY

Business Standard, 17 JulResults

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

Amal Ltd Q1 revenue rises 104% YoY to ₹965.39 crore

scanx.trade, 17 JulResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

Amal Upper Circuit Today: Price, Data and Peers

Univest, 12 Oct

Watch Items

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

StrongBusiness Quality · Financial Health · Growth · Profitability

WeakValuation · Risk

Points for each in the Score ↑

Good business at a fair price

A sound business at a reasonable valuation. Suitable for a long-term holding, with the valuation and the direction of margins worth watching rather than the business itself. 1 high-severity red flag sits above this conclusion and should be read first.

All 4 tripwires holding · see Key things to watch ↑