Amic Forging Limited

Industrials — Metal Fabrication · BSE

₹2,318.00+₹2.30 (+0.10%)

DalalBaazaar Score

57 / 100

🟡 Moderate

Verdict

CAUTION

Risk

Very High

Driven by high debt relative to equity, negative free cash flow, micro-cap size, which brings thin liquidity.

In simple words: Strong business and financial position, with both sales and profits growing well. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:51 pm

Understanding the Business

Company site ↗

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

What does this company do?

Amic Forging Limited manufactures and sells forged components in India and internationally.

IndustryMetal Fabrication

SectorIndustrials

Employees175

Annual revenue₹142 Cr

How does it make money?

Turns over ₹142 Cr a year. Of every ₹100 of sales, about ₹20 reaches shareholders as profit, with ₹33 left at the operating level before interest, tax and depreciation. Each of its 175 employees supports ₹81.0 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹81.0 lakh

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.

Compared side by side in Peers ↓

What is its competitive advantage?Some evidence

ROCE of 18.6% 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 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 +22% while net margin moved +139% 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+22%

Margin effect+139%

DalalBaazaar Score

57/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ P/E of 88.1x is demanding — it needs sustained high growth to justify
• P/E is close to its own historical median of 78.1x
✗ P/B of 11.73x is a steep premium to book

Quality vs. Valuation

Company Quality

65/ 100

Good

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.

A good business, but the price already reflects that. The quality is real; the question is whether you are overpaying for it today.

Historical Valuation

Current P/E

88.1x

3Y Median

78.1x

36 monthly readings · mean 73.8x · range 37.9x–172.1x

Sector Median

12.2x

median of 4 sector peers

⚠️Current valuation is approximately 13% above its 3y median of 78.1x. 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 625% above the peer median of 12.2x.

vs. its own history

Fair

78.1x median over 36 months · +13%

vs. sector peers

Expensive

12.2x median of 4 peers · +625%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

64.2x

PEG

2.05

What's Good / What's Bad

🟢 What's Going Well2

Margins are improving
EBITDA margin is up from 12.5% to 33.1% 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 48.5% to 13.3% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 56.6% to 18.6% — often a sign of competition or overexpansion.

Red Flags

4 items require attention · 4 high

🔴High leverageFinancial
Debt/Equity of 2.65x — earnings must service borrowings before shareholders see anything.
🔴Free cash flow negative for 3 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 144% against revenue up 22% — sales are being booked faster than they are collected.
🔴Inventory building faster than salesFinancial
Inventory up 330% against revenue up 22% — stock may not be moving.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 18.6% 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 12.5% to 33.1%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
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?

Leverage amplifies any setback
Debt/Equity of 2.65x. Interest is payable whether or not the business has a good year.
Sales are being booked faster than collected
Receivables are up 144% against revenue up 22%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
A premium to the sector to defend
It trades 625% above the peer median. That premium needs a reason that persists, or it closes.
Growth barely outpaces inflation
Revenue compounding at 7.0% a year is close to the rate prices rise, so the business is gaining little ground in real terms. That leaves the share price dependent on a re-rating rather than on earnings growth.
Returns on shareholder capital are falling
ROE has dropped from 48.5% to 13.3%. 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.

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

1EBITDA margin holds above 31%✓ 33.1%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Free cash flow remains positive✗ -₹54 Cr
Profit that never becomes cash eventually stops being profit.
3Revenue growth stays above 5% a year✓ 7.0% CAGR
Latest reported year was 30.5%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
4Debt / EBITDA stays below 2x✓ 0.1x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 16%✓ 18.6%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

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 · 2 neutral · 4 weak

Market Cap

₹3,013 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

88.1x

Expensive

Expensive — verify against sector peers

P/B Ratio

11.73x

Rich

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

EPS (TTM)

₹26.3

Profitable

Profitable on a per-share basis

ROE

16.8%

Strong

Strong capital efficiency

ROCE

18.6%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

2.65x

High

High leverage

Revenue Growth (YoY)

30.5%

Healthy

Healthy top-line growth

Profit Growth (YoY)

18.1%

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

-₹59 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

ROA

12.0%

Good

Assets are working hard

Operating Margin

30.2%

Good

Healthy core-business profitability

Net Margin

19.9%

Good

Strong bottom-line conversion

Current Ratio

2.32

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

-0.01

Defensive

Steadier than the market

52W Range Position

81%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

2401.1 / 2200.9

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

44.0

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹116 Cr	₹126 Cr	₹121 Cr	₹142 Cr	+7.0%
EBITDA	₹15 Cr	₹18 Cr	₹30 Cr	₹47 Cr	+47.8%
EBITDA Margin	12.5%	14.0%	24.5%	33.1%	—
PAT (Net Profit)	₹10 Cr	₹14 Cr	₹36 Cr	₹28 Cr	+43.0%
EPS	₹9.21	₹16.06	₹33.9	₹26.3	+41.9%
ROE	48.5%	21.4%	28.6%	13.3%	—
ROCE	56.6%	28.2%	36.5%	18.6%	—
Total Debt	₹5 Cr	₹4 Cr	—	₹6 Cr	+3.0%
Free Cash Flow	₹15 Cr	-₹13 Cr	-₹26 Cr	-₹54 Cr	—

🟢 Revenue has grown at 7.0% a year over 3 years.

🟢 EBITDA has grown at 47.8% a year over 3 years.

🟢 EBITDA Margin has risen from 12.5% to 33.1% over 3 years (+20.6 pts).

🟢 PAT (Net Profit) has grown at 43.0% a year over 3 years.

🟢 EPS has grown at 41.9% a year over 3 years.

🔴 ROE has fallen from 48.5% to 13.3% over 3 years (-35.2 pts).

🔴 ROCE has fallen from 56.6% to 18.6% over 3 years (-38.0 pts).

🔴 Total Debt has grown at 3.0% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹15 Cr to -₹54 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹256 Cr

Total Liabilities

₹43 Cr

Cash & Equivalents

₹7 Cr

Operating Cash Flow

₹9 Cr

Capex

-₹63 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

61.3%

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

1 mixed1 negative4 general

Amic Forging Ltd. 52 Week High Streak After Second Session

Univest, 07 Oct

Amic Forging Ltd Key Financial Ratios – Valuation, Profitability & More

Value Research, 27 Aug

Amic Forging EGM approves preferential issue worth Rs. 220.99 crore

scanx.trade, 05 Jun

Amic Forging Share Price - Specialty Forgings, Financials, Valuation & Risks — 45% Profit Decline, Cash Flow Turns Positive, 70x P/E

Kalkine India, 27 AprResults

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

Mukul Agarwal & Motilal Oswal Participate In Rs 217 Crore Fund Raise For This Small Cap Forging Stock; Shares Jump Over 8%

Dalal Street Investment Journal, 11 MayPrice 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.

Amic Forging Ltd. Share Price ATH Watch: Valuation View

Univest, 12 Aug

Watch Items

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

DalalBaazaar Thesis

StrongBusiness Quality · Growth · Profitability

MiddlingFinancial Health

WeakValuation · Risk

Points for each in the Score ↑

Good business, demanding price

The quality is real and the price already reflects it. Buying here is a bet that the business keeps compounding for long enough to grow into the multiple — which good businesses often do, but it removes the margin for error that a lower price would have given you. 4 high-severity red flags sit above this conclusion and should be read first.

1 of 5 tripwires tripped — Free cash flow remains positive · see Key things to watch ↑