Amit Securities Limited

Basic Materials — Aluminum · BSE

₹32.56₹0.00 (0.00%)

DalalBaazaar Score

47 / 100

🟡 Moderate

Verdict

CAUTION

Risk

High

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

In simple words: The business is earning a fairly low return on the money invested in it, but sales are shrinking. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:06 pm

Caution warranted. Multiple fundamental metrics — flagged in red below — point to either valuation stretch, leverage risk, or weakening profitability. This doesn't mean avoid the stock outright, but it does mean the burden of proof is on the growth story to justify the current price.

Understanding the Business

Company site ↗

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

What does this company do?

Amit Securities Limited primarily engages in the trading of aluminum utensils in India. It also invests in mutual funds, shares, and securities. The company was incorporated in 1992 and is headquartered in Indore, India.

IndustryAluminum

SectorBasic Materials

Annual revenue₹3 Cr

How does it make money?

Turns over ₹3 Cr a year. Of every ₹100 of sales, about ₹20 reaches shareholders as profit, with ₹6 left at the operating level before interest, tax and depreciation.

EBITDA margin5.9%

Net margin20.3%

Who are its competitors?

The closest listed comparisons in its industry are HINDALCO INDUSTRIES LTD, VEDANTA LIMITED, TATA STEEL LIMITED, JSW STEEL LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

HINDALCO INDUSTRIES LTDP/E 12.3x · ROE 12.0%

VEDANTA LIMITEDP/E 10.4x · ROE 18.7%

TATA STEEL LIMITEDP/E 19.8x · ROE 10.8%

JSW STEEL LIMITEDP/E 12.0x · ROE 24.7%

What is its competitive advantage?Little sign of one

Returns on capital of 0.9% 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.

ROCE0.9%

ROE3.3%

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 +19% while net margin moved -81% 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+19%

Margin effect-81%

DalalBaazaar Score

47/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Revenue CAGR of only 6.0% — barely ahead of inflation
✗ Profit has declined at 38.8% a year
✗ Profit is compounding slower than revenue — margins are being squeezed as the business grows
✗ Latest-year revenue growth of -23.8% is below the longer-term trend — momentum is fading

Quality vs. Valuation

Company Quality

48/ 100

Average

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

Historical Valuation

Current P/E

38.3x

3Y Median

11.1x

40 monthly readings · mean 26.6x · range 1.2x–75.0x

Sector Median

12.2x

median of 4 sector peers

⚠️Current valuation is approximately 244% above its 3y median of 11.1x. 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 215% above the peer median of 12.2x.

vs. its own history

Expensive

11.1x median over 40 months · +244%

vs. sector peers

Expensive

12.2x median of 4 peers · +215%

vs. generic bands

Expensive

Above 35x

P/E (Trailing)

38.3x

P/B

1.39x

EV/EBITDA

146.4x

PEG

1.11

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well1

Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention5

Free cash flow is negative
The business is not currently covering its capital spending from operations.
Return on equity is falling
ROE has dropped from 15.6% to 3.3% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 14.1% to 0.9% — often a sign of competition or overexpansion.
Receivables growing faster than sales
Receivables are up 141% against revenue growth of 19% — customers are taking longer to pay.
Valuation above its historical average
At 38.3x the stock trades 244% above its own median of 11.1x.

Red Flags

3 items require attention · 2 high · 1 watch

🔴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 141% against revenue up 19% — sales are being booked faster than they are collected.
🟡Profit is decliningFinancial
Net profit is down 77% over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

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 141% against revenue up 19%. 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 244% 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.
Growth barely outpaces inflation
Revenue compounding at 6.0% 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 15.6% to 3.3%. 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.
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.

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

1EBITDA margin holds above 4%✓ 5.9%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Free cash flow remains positive✗ -₹0 Cr
Profit that never becomes cash eventually stops being profit.
3Revenue growth stays above 5% a year✓ 6.0% CAGR
Latest reported year was -23.8%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
4ROCE stays above 8%✗ 0.9%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.
5Valuation vs its own median of 11.1x✗ 38.3x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

5 / 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
✓ 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 · 4 neutral · 4 weak

Market Cap

₹23 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

38.3x

Fair

Fairly valued against the generic band

P/B Ratio

1.39x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹0.85

Profitable

Profitable on a per-share basis

ROE

3.3%

Weak

Weak capital efficiency

ROCE

0.9%

Weak

Low return on total capital employed

Debt/Equity

Not available

No data

Source didn't return this field

Revenue Growth (YoY)

-23.8%

Shrinking

Sales are contracting

Profit Growth (YoY)

34.5%

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

-₹0 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

CMP

₹32.56

Operating Margin

5.4%

Average

Average margins

Net Margin

22.8%

Good

Strong bottom-line conversion

Current Ratio

9.25

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.82

Market-like

Moves roughly in line with the market

52W Range Position

13%

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

36.1 / 39.7

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

0.0

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹2 Cr	₹2 Cr	₹2 Cr	₹3 Cr	+6.0%
EBITDA	₹0 Cr	₹0 Cr	₹0 Cr	₹0 Cr	-0.2%
EBITDA Margin	7.1%	10.0%	10.7%	5.9%	—
PAT (Net Profit)	₹2 Cr	₹0 Cr	₹1 Cr	₹1 Cr	-38.8%
EPS	₹3.29	₹0.36	₹1.02	₹0.75	-38.8%
ROE	15.6%	1.7%	4.6%	3.3%	—
ROCE	14.1%	1.3%	1.6%	0.9%	—
Free Cash Flow	-₹0 Cr	-₹0 Cr	-₹0 Cr	-₹0 Cr	—

🟢 Revenue has grown at 6.0% a year over 3 years.

🟡 EBITDA has been broadly flat over 3 years (-0.2% a year).

🔴 EBITDA Margin has fallen from 7.1% to 5.9% over 3 years (-1.2 pts).

🔴 PAT (Net Profit) has shrunk at 38.8% a year over 3 years.

🔴 EPS has shrunk at 38.8% a year over 3 years.

🔴 ROE has fallen from 15.6% to 3.3% over 3 years (-12.4 pts).

🔴 ROCE has fallen from 14.1% to 0.9% over 3 years (-13.2 pts).

Balance Sheet & Cash Flow — FY2026

Total Assets

₹17 Cr

Total Liabilities

₹0 Cr

Total Debt

—

Cash & Equivalents

₹0 Cr

Operating Cash Flow

-₹0 Cr

Capex

—

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

90.1%

Peer Comparison

Company	P/E	ROE
HINDALCO INDUSTRIES LTD	12.3x	12.0%
VEDANTA LIMITED	10.4x	18.7%
TATA STEEL LIMITED	19.8x	10.8%
JSW STEEL LIMITED	12.0x	24.7%

Recent News

6 general

Amit Securities Ltd. Key Financial Ratios – Valuation, Profitability & More

Value Research, 04 Sept

Amit Securities 34th AGM Confirms BSE Trading Suspension Revocation

Whalesbook, 23 Sept

Amit Securities Consolidated June 2026 Net Sales at Rs 0.26 crore, down 24.05% Y-o-Y

Moneycontrol.com, 21 Sept

Amit Securities shareholders approve FY26 financials and director appointments

scanx.trade, 23 Sept

Amit Securities Ltd. Peer Comparison – Compare with Others

Value Research, 30 Aug

Sebi penalises SMC Global Securities for compliance lapses

The Economic Times, 02 Oct

Watch Items

Revenue growth is negative (-23.8%) 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.
1 metric couldn't be retrieved for this stock — this is more common for smaller or thinly-covered listings.
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

🔴Business QualityWeak8.7/20

🟢Financial HealthStrong13.2/20

🔴GrowthWeak6.2/20

🟡ProfitabilityModerate7.5/15

🟡ValuationFair7.5/15

🔴RiskHigh3.5/10

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

This thesis breaks if

✓EBITDA margin holds above 4%5.9%
✗Free cash flow remains positive-₹0 Cr
✓Revenue growth stays above 5% a year6.0% CAGR
✗ROCE stays above 8%0.9%
✗Valuation vs its own median of 11.1x38.3x today