Amin Tannery Limited

Consumer Cyclical — Footwear & Accessories · BSE

₹1.66+₹0.03 (+1.84%)

DalalBaazaar Score

39 / 100

🔴 Weak

Verdict

CAUTION

Risk

High

Driven by high debt relative to equity, 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 modest growth. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:58 pm

Understanding the Business

Company site ↗

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

What does this company do?

Amin Tannery Limited engages in the manufacture and export of finished leather and leather products in India. The company also offers leather shoes and boots, as well as leather shoe uppers. Amin Tannery Limited was incorporated in 2013 and is based in Kanpur, India.

IndustryFootwear & Accessories

SectorConsumer Cyclical

Employees166

Annual revenue₹33 Cr

How does it make money?

Turns over ₹33 Cr a year. Of every ₹100 of sales, about ₹1 reaches shareholders as profit, with ₹8 left at the operating level before interest, tax and depreciation. Each of its 166 employees supports ₹20.1 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹20.1 lakh

Who are its competitors?

The closest listed comparisons in its industry are MARUTI SUZUKI INDIA LTD., TITAN COMPANY LIMITED, TRENT LTD, AVENUE SUPERMARTS 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?Little sign of one

Returns on capital of 13.5% 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.

Peer median ROE25.9%

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 -35% while net margin moved -6% 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-35%

Margin effect-6%

DalalBaazaar Score

39/ 100

Weak

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 13.2% a year
✗ Profit has declined at 14.9% a year

Quality vs. Valuation

Company Quality

33/ 100

Weak

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

Valuation

65/ 100

Fair

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

41.5x

3Y Median

75.7x

40 monthly readings · mean 73.5x · range 42.0x–101.0x

Sector Median

69.2x

median of 4 sector peers

🟢Current valuation is approximately 45% below its 3y median of 75.7x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

🟢Against its sector it trades 40% below the peer median of 69.2x.

vs. its own history

Cheap

75.7x median over 40 months · -45%

vs. sector peers

Cheap

69.2x median of 4 peers · -40%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

17.5x

PEG

—

What's Good / What's Bad

🟢 What's Going Well2

Margins are improving
EBITDA margin is up from 6.2% to 8.0% over 3 years.
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

3 items require attention · 2 high · 1 watch

🔴High leverageFinancial
Debt/Equity of 2.19x — earnings must service borrowings before shareholders see anything.
🔴Thin interest coverageFinancial
Operating profit covers interest only 1.2x — little room if earnings dip.
🟡Profit is decliningFinancial
Net profit is down 38% over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 6.2% to 8.0%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Priced below its own history
The stock trades 45% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Cheaper than its peers
It trades 40% 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?

The debt load needs earnings to hold up
Debt is 10.8x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
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
2 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

1EBITDA margin holds above 6%✓ 8.0%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA falls below 3x✗ 10.8x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
3Interest cover stays above 3x✗ 1.2x
How much operating profit can fall before interest stops being comfortably covered.
4Free cash flow remains positive✓ ₹1 Cr
Profit that never becomes cash eventually stops being profit.
5ROCE stays above 11%✓ 13.5%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

5 / 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

3 good · 5 neutral · 3 weak

Market Cap

₹18 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

41.5x

Expensive

Expensive — verify against sector peers

P/B Ratio

2.22x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹0.04

Profitable

Profitable on a per-share basis

ROE

1.7%

Weak

Weak capital efficiency

ROCE

13.5%

Moderate

Moderate return on the capital in the business

Debt/Equity

2.19x

High

High leverage

Revenue Growth (YoY)

13.2%

Healthy

Healthy top-line growth

Profit Growth (YoY)

0.0%

Modest

Slow profit growth

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

₹1 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

5.0%

Weak

Thin margins leave little room for error

Net Margin

0.7%

Weak

Very little revenue reaches the bottom line

Current Ratio

1.14

Adequate

Adequate, but no real cushion

Beta (vs Nifty)

0.52

Defensive

Steadier than the market

52W Range Position

36%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

1.9 / 1.8

Bullish alignment (short > long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

7.0

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹51 Cr	₹45 Cr	₹40 Cr	₹33 Cr	-13.2%
EBITDA	₹3 Cr	₹3 Cr	₹3 Cr	₹3 Cr	-5.5%
EBITDA Margin	6.2%	6.3%	6.5%	8.0%	—
PAT (Net Profit)	₹0 Cr	₹0 Cr	₹0 Cr	₹0 Cr	-14.9%
EPS	₹0.03	₹0.03	₹0.03	₹0.02	-12.6%
ROE	3.0%	2.9%	2.3%	1.7%	—
ROCE	14.2%	14.2%	12.0%	13.5%	—
Total Debt	₹29 Cr	₹29 Cr	₹29 Cr	₹29 Cr	+0.2%
Free Cash Flow	₹3 Cr	₹1 Cr	₹1 Cr	₹1 Cr	-19.4%

🔴 Revenue has shrunk at 13.2% a year over 3 years.

🔴 EBITDA has shrunk at 5.5% a year over 3 years.

🟢 EBITDA Margin has risen from 6.2% to 8.0% over 3 years (+1.8 pts).

🔴 PAT (Net Profit) has shrunk at 14.9% a year over 3 years.

🔴 EPS has shrunk at 12.6% a year over 3 years.

🔴 ROE has fallen from 3.0% to 1.7% over 3 years (-1.3 pts).

🟡 ROCE has held roughly flat at 13.5% over 3 years.

🟡 Total Debt has been broadly flat over 3 years (0.2% a year).

🔴 Free Cash Flow has shrunk at 19.4% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹63 Cr

Total Liabilities

₹49 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

₹2 Cr

Capex

-₹0 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

67.1%

Peer Comparison

Company	P/E	ROE
MARUTI SUZUKI INDIA LTD.	25.2x	13.4%
TITAN COMPANY LIMITED	68.5x	36.7%
TRENT LTD	87.2x	25.9%
AVENUE SUPERMARTS LIMITED	69.9x	12.7%

Recent News

2 positive2 mixed2 general

Amin Tannery standalone net profit rises 28.57% in the June 2026 quarter

Business Standard, 11 AugResults

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

Leather stocks down today: Super Tannery, AKI India, Amin Tannery, Euro-Leder Fashion under pressure; Here's why

Livemint, 15 Sept

Amin Tannery Limited Schedules Board Meeting on May 26, 2026 to Approve Annual Audited Financial Results for FY26

scanx.trade, 26 MayResults

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

Amin Tannery Q1 FY27 Results: Revenue Rs 11 Cr, PAT Rs 0.09 Cr and Key Highlights

Univest, 11 AugResults

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

Amin Tannery Ltd Upgraded to Sell on Technical Improvements Despite Weak Fundamentals

MarketsMojo, 04 SeptAnalyst view

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

Amin Tannery sets Sept 23 record date for annual general meeting

scanx.trade, 11 Sept

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.
RSI is in oversold territory — could mean either a bargain or a stock still falling for good reason. Check the 'why' before assuming reversal.

DalalBaazaar Thesis

MiddlingBusiness Quality · Financial Health · Valuation · Risk

WeakGrowth · Profitability

Points for each in the Score ↑

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. 2 high-severity red flags sit above this conclusion and should be read first.

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