Archidply Industries Limited

Basic Materials — Lumber & Wood Production · NSE

₹104.10−₹0.75 (−0.72%)

DalalBaazaar Score

47 / 100

🟡 Moderate

Verdict

NEUTRAL

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 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, 8:28 pm

Understanding the Business

Company site ↗

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

What does this company do?

Archidply Industries Limited manufactures and sells wood and paper-based products in India and internationally. It operates through Plywood & Allied Products, Laminate & Allied Products, and Medium Density Fibre Board segments.

IndustryLumber & Wood Production

SectorBasic Materials

Employees429

Annual revenue₹671 Cr

How does it make money?

Turns over ₹671 Cr a year. Of every ₹100 of sales, about ₹1 reaches shareholders as profit, with ₹6 left at the operating level before interest, tax and depreciation. Each of its 429 employees supports ₹1.56 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹1.56 Cr

Who are its competitors?

The closest listed comparisons in its industry are TATA STEEL LIMITED, JSW STEEL LIMITED, ULTRATECH CEMENT LIMITED, ASIAN PAINTS 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 15.1% 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?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved +59% while net margin moved -59% 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+59%

Margin effect-59%

DalalBaazaar Score

47/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ ROE of 7.1% is weak
✗ ROE has fallen by 4.7 points over the period

Quality vs. Valuation

Company Quality

44/ 100

Weak

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

Valuation

75/ 100

Cheap

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

Optically cheap, but the underlying business scores poorly. Cheap-and-weak is what a value trap looks like from the outside — the low price may be deserved.

Historical Valuation

Current P/E

15.9x

3Y Median

24.3x

40 monthly readings · mean 23.3x · range 10.8x–38.4x

Sector Median

28.7x

median of 4 sector peers

🟢Current valuation is approximately 35% below its 3y median of 24.3x. 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 45% below the peer median of 28.7x.

vs. its own history

Cheap

24.3x median over 40 months · -35%

vs. sector peers

Cheap

28.7x median of 4 peers · -45%

vs. generic bands

Fair

15x–35x

EV/EBITDA

9.0x

PEG

—

What's Good / What's Bad

🟢 What's Going Well1

Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.

🔴 What Needs Attention1

Return on equity is falling
ROE has dropped from 11.8% to 7.1% — each rupee of shareholder capital earns less than it did.

Red Flags

4 items require attention · 3 high · 1 watch

🔴Debt has risen sharplyFinancial
Total debt is up 121% over 3 years, from ₹83 Cr to ₹182 Cr.
🔴High leverageFinancial
Debt/Equity of 1.63x — earnings must service borrowings before shareholders see anything.
🔴Thin interest coverageFinancial
Operating profit covers interest only 1.7x — little room if earnings dip.
🟡Profit is decliningFinancial
Net profit is down 35% over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Priced below its own history
The stock trades 35% 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 45% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.

🔴 Bear CaseWhat could go wrong?

The debt load needs earnings to hold up
Debt is 4.2x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
Returns on shareholder capital are falling
ROE has dropped from 11.8% to 7.1%. 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.
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 13% a year✓ 16.8% CAGR
Latest reported year was 27.8%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 4%✓ 6.4%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA falls below 3x✗ 4.2x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
4Interest cover stays above 3x✗ 1.7x
How much operating profit can fall before interest stops being comfortably covered.
5Free cash flow remains positive✓ ₹33 Cr
Profit that never becomes cash eventually stops being profit.

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 · 4 neutral · 2 weak

Market Cap

₹208 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

15.9x

Fair

Fairly valued against the generic band

P/B Ratio

1.84x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹6.56

Profitable

Profitable on a per-share basis

ROE

7.1%

Weak

Weak capital efficiency

ROCE

15.1%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

1.63x

High

High leverage

Revenue Growth (YoY)

27.8%

Healthy

Healthy top-line growth

Profit Growth (YoY)

875.9%

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

₹33 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

5.7%

Average

Average margins

Net Margin

1.8%

Weak

Very little revenue reaches the bottom line

Current Ratio

1.15

Adequate

Adequate, but no real cushion

Beta (vs Nifty)

0.19

Defensive

Steadier than the market

52W Range Position

68%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

103.5 / 101.5

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

44.8

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹421 Cr	₹435 Cr	₹556 Cr	₹671 Cr	+16.8%
EBITDA	₹26 Cr	₹25 Cr	₹23 Cr	₹43 Cr	+18.5%
EBITDA Margin	6.2%	5.7%	4.1%	6.4%	—
PAT (Net Profit)	₹12 Cr	₹7 Cr	-₹7 Cr	₹8 Cr	-13.3%
EPS	₹6.17	₹3.57	₹-3.7	₹4.02	-13.3%
ROE	11.8%	6.4%	-7.1%	7.1%	—
ROCE	16.7%	10.1%	5.1%	15.1%	—
Total Debt	₹83 Cr	₹152 Cr	₹196 Cr	₹182 Cr	+30.2%
Free Cash Flow	-₹15 Cr	-₹53 Cr	-₹28 Cr	₹33 Cr	—

🟢 Revenue has grown at 16.8% a year over 3 years.

🟢 EBITDA has grown at 18.5% a year over 3 years.

🟡 EBITDA Margin has held roughly flat at 6.4% over 3 years.

🔴 PAT (Net Profit) has shrunk at 13.3% a year over 3 years.

🔴 EPS has shrunk at 13.3% a year over 3 years.

🔴 ROE has fallen from 11.8% to 7.1% over 3 years (-4.7 pts).

🔴 ROCE has fallen from 16.7% to 15.1% over 3 years (-1.6 pts).

🔴 Total Debt has grown at 30.2% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹15 Cr to ₹33 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹387 Cr

Total Liabilities

₹275 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

₹34 Cr

Capex

-₹1 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

69.9%

Corporate Actions

Ex-Dividend Date

25 Aug 2009

Peer Comparison

Company	P/E	ROE
TATA STEEL LIMITED	19.8x	10.8%
JSW STEEL LIMITED	12.0x	24.7%
ULTRATECH CEMENT LIMITED	37.6x	11.1%
ASIAN PAINTS LIMITED	46.9x	22.3%

Recent News

1 positive5 general

ARCHIDPLY INDUSTRIES Share Price

Upstox, 16 Oct

Archidply Industries (ARCHIDPLY.NS) Ticks Up 1.18% to ₹102.99, Nearing Resistance at ₹108.14 - Fast Moving Stocks

https://www.siam.in/, 05 Oct

Archidply Industries: Best Stock in Its Sector? Key Metrics

Univest, 23 Sept

Archidply Industries Q1FY27 consolidated PAT rises 888% YoY to ₹561.74 lakh

scanx.trade, 07 Aug

Archidply Industries consolidated net profit rises 885.96% in the June 2026 quarter

Business Standard, 07 AugResults

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

Archidply Industries Share: Bull Case vs Bear Case for 2026

Univest, 09 Sept

Watch Items

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

DalalBaazaar Thesis

StrongValuation

MiddlingBusiness Quality · Growth

WeakFinancial Health · Profitability · Risk

Points for each in the Score ↑

Cheap, but for a reason

The low price is the whole case here, and the business underneath scores poorly. Cheap-and-weak is what a value trap looks like from the outside — it needs a specific reason the numbers are about to improve, not just the observation that they are low. 3 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 ↑