APM Industries Limited

Consumer Cyclical — Textile Manufacturing · BSE

₹56.00+₹0.59 (+1.06%)

DalalBaazaar Score

34 / 100

🔴 Weak

Verdict

CAUTION

Risk

Very High

Driven by high debt relative to equity, micro-cap size, which brings thin liquidity, a very high earnings multiple, which leaves little margin for disappointment.

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

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:03 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 APM Industries Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

APM Industries Limited manufactures and sells synthetic blended spun yarns in India.

IndustryTextile Manufacturing

SectorConsumer Cyclical

Employees1,722

Annual revenue₹268 Cr

How does it make money?

Turns over ₹268 Cr a year. Of every ₹100 of sales, about ₹-1 reaches shareholders as profit, with ₹4 left at the operating level before interest, tax and depreciation. Each of its 1,722 employees supports ₹15.6 lakh of revenue a year, the signature of a people-led business.

EBITDA margin3.6%

Net margin-1.0%

Revenue / employee₹15.6 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.

MARUTI SUZUKI INDIA LTD.P/E 25.2x · ROE 13.4%

TITAN COMPANY LIMITEDP/E 68.5x · ROE 36.7%

TRENT LTDP/E 87.2x · ROE 25.9%

AVENUE SUPERMARTS LIMITEDP/E 69.9x · ROE 12.7%

What is its competitive advantage?Little sign of one

Returns on capital of -0.1% 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.

ROCE-0.1%

ROE-1.6%

Peer median ROE25.9%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved -25% while net margin moved -117% 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-25%

Margin effect-117%

DalalBaazaar Score

34/ 100

Weak

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 9.1% a year
✗ Profit fell 336.1% in the latest year

Quality vs. Valuation

Company Quality

32/ 100

Weak

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

Valuation

54/ 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

50.5x

3Y Median

20.1x

40 monthly readings · mean 18.0x · range 5.0x–30.4x

Sector Median

69.2x

median of 4 sector peers

⚠️Current valuation is approximately 151% above its 3y median of 20.1x. 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 27% below the peer median of 69.2x.

vs. its own history

Expensive

20.1x median over 40 months · +151%

vs. sector peers

Cheap

69.2x median of 4 peers · -27%

vs. generic bands

Expensive

Above 35x

P/E (Trailing)

50.5x

P/B

0.74x

EV/EBITDA

13.8x

PEG

—

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well1

Debt is being paid down
Total debt is down 46% over 3 years.

🔴 What Needs Attention4

Margins are compressing
EBITDA margin has slipped from 10.8% to 3.6% over 3 years.
Return on equity is falling
ROE has dropped from 12.6% to -1.6% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 14.9% to -0.1% — often a sign of competition or overexpansion.
Valuation above its historical average
At 50.5x the stock trades 151% above its own median of 20.1x.

Red Flags

4 items require attention · 4 high

🔴High leverageFinancial
Debt/Equity of 7.67x — earnings must service borrowings before shareholders see anything.
🔴Thin interest coverageFinancial
Operating profit covers interest only -0.6x — little room if earnings dip.
🔴The company is lossmakingFinancial
Net profit of -₹3 Cr in the latest reported year.
🔴Significant margin compressionFinancial
EBITDA margin has fallen 7.2 points, from 10.8% to 3.6%.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Deleveraging frees up earnings
Debt is down 46% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
Cheaper than its peers
It trades 27% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.

🔴 Bear CaseWhat could go wrong?

Margins are being competed away
EBITDA margin has fallen from 10.8% to 3.6%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Leverage amplifies any setback
Debt/Equity of 7.67x. Interest is payable whether or not the business has a good year.
The price already assumes success
The stock trades 151% 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 12.6% to -1.6%. 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.
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 2%✓ 3.6%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Interest cover stays above 3x✗ -0.6x
How much operating profit can fall before interest stops being comfortably covered.
3Free cash flow remains positive✓ ₹14 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 1.3x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 8%✗ -0.1%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

3 / 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 · 2 neutral · 6 weak

Market Cap

₹121 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

50.5x

Expensive

Expensive — verify against sector peers

P/B Ratio

0.74x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹1.11

Profitable

Profitable on a per-share basis

ROE

-1.6%

Weak

Weak capital efficiency

ROCE

-0.1%

Weak

Low return on total capital employed

Debt/Equity

7.67x

High

High leverage

Revenue Growth (YoY)

-11.0%

Shrinking

Sales are contracting

Profit Growth (YoY)

-336.1%

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

₹14 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

CMP

₹56

P/E (Forward)

4.8x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

2.0%

Weak

Thin margins leave little room for error

Net Margin

0.9%

Weak

Very little revenue reaches the bottom line

Current Ratio

1.98

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

-0.20

Defensive

Steadier than the market

52W Range Position

80%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

57.0 / 57.1

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

44.2

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹358 Cr	₹300 Cr	₹291 Cr	₹268 Cr	-9.1%
EBITDA	₹39 Cr	₹14 Cr	₹6 Cr	₹10 Cr	-36.9%
EBITDA Margin	10.8%	4.7%	2.0%	3.6%	—
PAT (Net Profit)	₹21 Cr	₹4 Cr	-₹1 Cr	-₹3 Cr	—
EPS	₹9.88	₹1.93	₹-0.28	₹-1.23	—
ROE	12.6%	2.4%	-0.4%	-1.6%	—
ROCE	14.9%	3.0%	-1.0%	-0.1%	—
Total Debt	₹24 Cr	₹29 Cr	₹7 Cr	₹13 Cr	-18.5%
Free Cash Flow	₹16 Cr	-₹1 Cr	₹23 Cr	₹14 Cr	-4.2%

🔴 Revenue has shrunk at 9.1% a year over 3 years.

🔴 EBITDA has shrunk at 36.9% a year over 3 years.

🔴 EBITDA Margin has fallen from 10.8% to 3.6% over 3 years (-7.2 pts).

🔴 PAT (Net Profit) has turned negative, from ₹21 Cr to -₹3 Cr.

🔴 EPS has turned negative, from ₹9.88 to ₹-1.23.

🔴 ROE has fallen from 12.6% to -1.6% over 3 years (-14.2 pts).

🔴 ROCE has fallen from 14.9% to -0.1% over 3 years (-15.0 pts).

🟢 Total Debt has shrunk at 18.5% a year over 3 years.

🔴 Free Cash Flow has shrunk at 4.2% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹233 Cr

Total Liabilities

₹66 Cr

Total Debt

₹13 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

₹14 Cr

Capex

-₹0 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

75.2%

Corporate Actions

Ex-Dividend Date

13 Sept 2024

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

1 negative5 general

APM Industries Ltd. (APMIN) Share Price Near 52-Week High After 3.36% Rise

Univest, 29 Sept

APM Industries Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 31 Aug

APM Industries promoter Ajay Rajgarhia acquires 5,175 shares

scanx.trade, 16 Sept

APM Industries Ltd. Peer Comparison – Compare with Others

Value Research, 31 Aug

Ratnamani Metals & Tubes consolidated net profit declines 37.67% in the June 2026 quarter

Business Standard, 07 AugResults

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

APM Industries Ltd. Key Financial Ratios – Valuation, Profitability & More

Value Research, 29 Aug

Watch Items

Revenue growth is negative (-11.0%) 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.

DalalBaazaar Thesis

🔴Business QualityWeak5.9/20

🟡Financial HealthAdequate11.6/20

🔴GrowthWeak2.4/20

🔴ProfitabilityWeak3.8/15

🔴ValuationDemanding6.2/15

🔴RiskHigh3.9/10

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

This thesis breaks if

✓EBITDA margin holds above 2%3.6%
✗Interest cover stays above 3x-0.6x
✓Free cash flow remains positive₹14 Cr
✓Debt / EBITDA stays below 2x1.3x
✗ROCE stays above 8%-0.1%