Ameenji Rubber Limited

Industrials — Railroads · BSE

₹252.05−₹5.10 (−1.98%)

DalalBaazaar Score

52 / 100

🟡 Moderate

Verdict

CAUTION

Risk

High

Driven by moderate debt load, negative free cash flow, micro-cap size, which brings thin liquidity.

In simple words: Strong business and financial position, though profits are falling even as sales grow. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:03 pm

Understanding the Business

Company site ↗

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

What does this company do?

Ameenji Rubber Limited engages in the manufacturing, supplying, and exporting rubber products in India and internationally.

IndustryRailroads

SectorIndustrials

Employees56

Annual revenue₹123 Cr

How does it make money?

Turns over ₹123 Cr a year. Of every ₹100 of sales, about ₹5 reaches shareholders as profit, with ₹15 left at the operating level before interest, tax and depreciation. Each of its 56 employees supports ₹2.20 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹2.20 Cr

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.

Compared side by side in Peers ↓

What is its competitive advantage?Some evidence

ROCE of 17.3% 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 ROE15.2%

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 +66% while net margin moved +9% 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+66%

Margin effect+9%

DalalBaazaar Score

52/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ P/E of 44.8x is demanding — it needs sustained high growth to justify
✗ P/E is 101% above its own historical median of 22.3x — expensive by its own standards
✗ P/B of 5.20x is a steep premium to book

Quality vs. Valuation

Company Quality

61/ 100

Average

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

Valuation

43/ 100

Expensive

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

44.8x

1.2Y Median

22.3x

14 monthly readings · mean 24.8x · range 16.9x–38.3x

Sector Median

88.8x

median of 3 sector peers

⚠️Current valuation is approximately 101% above its 1.2y median of 22.3x. 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 50% below the peer median of 88.8x.

vs. its own history

Expensive

22.3x median over 14 months · +101%

vs. sector peers

Cheap

88.8x median of 3 peers · -50%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

17.8x

PEG

2.05

What's Good / What's Bad

🟢 What's Going Well2

Margins are improving
EBITDA margin is up from 12.5% to 15.2% 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 35.6% to 11.6% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 27.7% to 17.3% — often a sign of competition or overexpansion.

Red Flags

4 items require attention · 4 high

🔴Debt has risen sharplyFinancial
Total debt is up 156% over 3 years, from ₹22 Cr to ₹55 Cr.
🔴Free cash flow negative for 4 yearsFinancial
The business has not covered its capital spending from operations for several years running, which has to be funded externally.
🔴Receivables growing faster than salesFinancial
Receivables up 133% against revenue up 66% — sales are being booked faster than they are collected.
🔴Inventory building faster than salesFinancial
Inventory up 148% against revenue up 66% — stock may not be moving.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 12.5% to 15.2%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Cheaper than its peers
It trades 50% 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?

Sales are being booked faster than collected
Receivables are up 133% against revenue up 66%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
The price already assumes success
The stock trades 101% 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 35.6% to 11.6%. 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.
Several serious flags at once
4 high-severity checks triggered. Individually each has an explanation; together they raise the chance that something structural is wrong rather than a one-off.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 14% a year✓ 18.5% CAGR
Latest reported year was 47.3%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 13%✓ 15.2%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA stays below 2x✗ 2.9x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
4Free cash flow remains positive✗ -₹28 Cr
Profit that never becomes cash eventually stops being profit.
5Interest cover stays above 3x✗ 2.8x
How much operating profit can fall before interest stops being comfortably covered.

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

4 good · 3 neutral · 4 weak

Market Cap

₹284 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

44.8x

Expensive

Expensive — verify against sector peers

P/B Ratio

5.20x

Rich

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

EPS (TTM)

₹5.62

Profitable

Profitable on a per-share basis

ROE

16.6%

Strong

Strong capital efficiency

ROCE

17.3%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

1.00x

Moderate

Moderate leverage

Revenue Growth (YoY)

47.3%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-79.4%

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

-₹34 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

ROA

7.2%

Average

Average asset productivity

Operating Margin

6.7%

Average

Average margins

Net Margin

5.1%

Average

Average bottom-line conversion

Current Ratio

1.31

Comfortable

Healthy short-term liquidity

52W Range Position

78%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

260.1 / 225.8

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

54.2

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹74 Cr	₹83 Cr	₹94 Cr	₹123 Cr	+18.5%
EBITDA	₹9 Cr	₹12 Cr	₹18 Cr	₹19 Cr	+26.7%
EBITDA Margin	12.5%	14.8%	19.5%	15.2%	—
PAT (Net Profit)	₹4 Cr	₹4 Cr	₹8 Cr	₹6 Cr	+21.9%
EPS	₹3.1	₹3.82	₹6.81	—	—
ROE	35.6%	30.4%	35.2%	11.6%	—
ROCE	27.7%	33.8%	30.8%	17.3%	—
Total Debt	₹22 Cr	₹35 Cr	₹46 Cr	₹55 Cr	+36.7%
Free Cash Flow	-₹6 Cr	-₹11 Cr	-₹3 Cr	-₹28 Cr	—

🟢 Revenue has grown at 18.5% a year over 3 years.

🟢 EBITDA has grown at 26.7% a year over 3 years.

🟢 EBITDA Margin has risen from 12.5% to 15.2% over 3 years (+2.8 pts).

🟢 PAT (Net Profit) has grown at 21.9% a year over 3 years.

🔴 ROE has fallen from 35.6% to 11.6% over 3 years (-24.0 pts).

🔴 ROCE has fallen from 27.7% to 17.3% over 3 years (-10.4 pts).

🔴 Total Debt has grown at 36.7% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹145 Cr

Total Liabilities

₹90 Cr

Cash & Equivalents

₹5 Cr

Operating Cash Flow

₹2 Cr

Capex

-₹29 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

80.0%

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 positive5 general

AMEENJI 52 Week High Streak: Price, PE and Peer View

Univest, 08 Oct

AMEENJI RUBBER Lower Circuit Streak: Day 2 Price and Data

Univest, 12 Oct

Ameenji Rubber passes all seven resolutions at 20th AGM

scanx.trade, 05 Oct

AMEENJI RUBBER LIMITED Share Price

Upstox, 05 May

Ameenji Rubber Lands ₹24 Crore Railway Manufacturing Contract

Kalkine India, 15 SeptOrder win

🟢Potentially positiveAn order or contract win, which adds to future revenue. How much depends on its size against annual sales and on when it is executed.

Ameenji Rubber Secures Rs 13.41 Crore Order From South Central Railway

scanx.trade, 10 Aug

Watch Items

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

DalalBaazaar Thesis

StrongGrowth

MiddlingBusiness Quality · Profitability

WeakFinancial Health · Valuation · Risk

Points for each in the Score ↑

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you. 4 high-severity red flags sit above this conclusion and should be read first.

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