Amtech Esters Limited

Basic Materials — Specialty Chemicals · BSE

₹109.00−₹2.45 (−2.20%)

DalalBaazaar Score

67 / 100

🟢 Good

Verdict

REASONABLE

Risk

High

Driven by 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. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:52 pm

Understanding the Business

Company site ↗

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

What does this company do?

Amtech Esters Limited manufactures and sells polyester resins, FRP raw materials, fiberglass reinforcement products, and industrial chemicals in India.

IndustrySpecialty Chemicals

SectorBasic Materials

Employees60

Annual revenue₹41 Cr

How does it make money?

Turns over ₹41 Cr a year. Of every ₹100 of sales, about ₹10 reaches shareholders as profit, with ₹19 left at the operating level before interest, tax and depreciation. Each of its 60 employees supports ₹67.8 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹67.8 lakh

Who are its competitors?

The closest listed comparisons in its industry are ASIAN PAINTS LIMITED, 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 30.2% 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 ROE22.3%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +83% while net margin moved +281% 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+83%

Margin effect+281%

DalalBaazaar Score

67/ 100

Good

Weighted across six categories. Every point is explained below.

✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ Profits have swung sharply from year to year — earnings are hard to forecast
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

73/ 100

Good

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

Valuation

74/ 100

Cheap

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

A good business currently available at an undemanding price — the combination this framework is built to look for.

Historical Valuation

Current P/E

22.8x

Sector Median

40.4x

median of 4 sector peers

🟢Against its sector it trades 44% below the peer median of 40.4x.

vs. its own history

Not enough price and earnings history

vs. sector peers

Cheap

40.4x median of 4 peers · -44%

vs. generic bands

Fair

15x–35x

EV/EBITDA

13.0x

PEG

0.25

What's Good / What's Bad

🟢 What's Going Well6

Margins are improving
EBITDA margin is up from 4.7% to 18.5% 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 7.0% to 21.6%.
Return on capital is rising
ROCE has improved from 9.6% to 30.2%.
High return on capital employed
ROCE of 30.2% is the mark of a business that converts capital into profit efficiently.
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 · 3 high

🔴Debt has risen sharplyFinancial
Total debt is up 239% over 3 years, from ₹1 Cr to ₹3 Cr.
🔴Receivables growing faster than salesFinancial
Receivables up 207% against revenue up 83% — sales are being booked faster than they are collected.
🔴Inventory building faster than salesFinancial
Inventory up 182% against revenue up 83% — stock may not be moving.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 30.2% 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 4.7% to 18.5%. 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 44% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Self-funding with balance-sheet headroom
Positive free cash flow of ₹1 Cr alongside low debt means growth, buybacks or dividends need no outside money — and a downturn can be absorbed rather than refinanced.
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 207% against revenue up 83%. 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.
Several serious flags at once
3 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 17% a year✓ 22.3% CAGR
Latest reported year was 10.3%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 17%✓ 18.5%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✓ ₹1 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.5x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 27%✓ 30.2%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

9 / 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
✓ 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

Price history

Quick Metrics

6 good · 4 neutral · 1 weak

Market Cap

₹96 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

22.8x

Fair

Fairly valued against the generic band

P/B Ratio

3.59x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹4.78

Profitable

Profitable on a per-share basis

ROE

24.2%

Strong

Strong capital efficiency

ROCE

30.2%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.34x

Low

Conservative leverage

Revenue Growth (YoY)

10.3%

Healthy

Healthy top-line growth

Profit Growth (YoY)

13.4%

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

-₹1 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

ROA

12.0%

Good

Assets are working hard

Operating Margin

11.1%

Average

Average margins

Net Margin

10.4%

Good

Strong bottom-line conversion

Current Ratio

1.38

Comfortable

Healthy short-term liquidity

52W Range Position

43%

Mid-range

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹22 Cr	₹25 Cr	₹37 Cr	₹41 Cr	+22.3%
EBITDA	₹1 Cr	₹2 Cr	₹7 Cr	₹8 Cr	+93.9%
EBITDA Margin	4.7%	7.4%	17.8%	18.5%	—
PAT (Net Profit)	₹1 Cr	₹3 Cr	₹4 Cr	₹4 Cr	+91.0%
EPS	₹0.69	₹3.21	—	—	—
ROE	7.0%	24.4%	24.2%	21.6%	—
ROCE	9.6%	30.3%	35.1%	30.2%	—
Total Debt	₹1 Cr	₹4 Cr	₹4 Cr	₹3 Cr	+50.2%
Free Cash Flow	-₹3 Cr	-₹7 Cr	-₹0 Cr	₹1 Cr	—

🟢 Revenue has grown at 22.3% a year over 3 years.

🟢 EBITDA has grown at 93.9% a year over 3 years.

🟢 EBITDA Margin has risen from 4.7% to 18.5% over 3 years (+13.9 pts).

🟢 PAT (Net Profit) has grown at 91.0% a year over 3 years.

🟢 ROE has risen from 7.0% to 21.6% over 3 years (+14.6 pts).

🟢 ROCE has risen from 9.6% to 30.2% over 3 years (+20.5 pts).

🔴 Total Debt has grown at 50.2% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹3 Cr to ₹1 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹34 Cr

Total Liabilities

₹15 Cr

Cash & Equivalents

₹2 Cr

Operating Cash Flow

₹4 Cr

Capex

-₹3 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

68.0%

Peer Comparison

Company	P/E	ROE
ASIAN PAINTS LIMITED	46.9x	22.3%
PIDILITE INDUSTRIES LTD	57.8x	24.4%
SRF LTD	33.8x	15.4%
UPL LIMITED	21.5x	6.1%

Recent News

1 mixed5 general

Compare with Wim Plast

Equitymaster, 18 Oct

Amtech Esters Q1 Results 2026 - Find Amtech Esters Q1 Earnings Result | Amtech Esters Q1 results

Livemint, 14 OctResults

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

Amtech Esters Limited Share Price

Upstox, 17 Sept

Compare Supreme Industries with

Equitymaster, 16 Oct

Amtech Esters (BSE:544920) - Stock Analysis

Simply Wall Street, 18 Sept

Amtech Esters IPO Date, Price Band, GMP, Subscription & Allotment

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Watch Items

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

DalalBaazaar Thesis

StrongBusiness Quality · Growth · Profitability

MiddlingFinancial Health · Valuation

WeakRisk

Points for each in the Score ↑

Attractive on both counts

A good business currently available at an undemanding price — the combination this framework exists to look for. The work left is qualitative: whether the advantage the numbers imply is one you can identify and expect to last. 3 high-severity red flags sit above this conclusion and should be read first.

All 5 tripwires holding · see Key things to watch ↑