Arfin India Limited

Basic Materials — Aluminum · NSE

₹104.00−₹0.11 (−0.11%)

DalalBaazaar Score

50 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

Moderate

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

In simple words: Strong business and financial position, with both sales and profits growing well. Valuation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:07 pm

Mixed / neutral. No major red flags jump out, but nothing here screams "obviously cheap" either. This is a name that needs a peer comparison and a view on near-term earnings triggers before sizing a position.

Understanding the Business

Company site ↗

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

What does this company do?

Arfin India Limited manufactures and trades in ferrous and non-ferrous metals in India. Its products include conductor and cables, aluminum wire rods, cored wire, ferro alloys, inoculant, aluminum deox, and aluminum alloys ingots.

IndustryAluminum

SectorBasic Materials

Employees203

Annual revenue₹616 Cr

How does it make money?

Turns over ₹616 Cr a year. Of every ₹100 of sales, about ₹3 reaches shareholders as profit, with ₹8 left at the operating level before interest, tax and depreciation. Each of its 203 employees supports ₹3.04 Cr of revenue a year, the signature of a capital- or asset-led business.

EBITDA margin8.1%

Net margin2.5%

Revenue / employee₹3.04 Cr

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?The numbers suggest a real one

ROCE has stayed above 15% in every year available and stands at 20.8%. Returns that high normally get competed away; when they persist, something is protecting them, and its ROE of 9.1% against a peer median of 18.7% is consistent with that. What that something is — brand, scale, switching costs, regulation — the accounts cannot tell you.

ROCE20.8%

ROE9.1%

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 +13% while net margin moved +32% 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+13%

Margin effect+32%

DalalBaazaar Score

50/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ ROE of 9.1% is weak

Quality vs. Valuation

Company Quality

52/ 100

Average

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

Valuation

32/ 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

95.4x

1.4Y Median

113.0x

17 monthly readings · mean 120.8x · range 60.9x–175.0x

Sector Median

12.2x

median of 4 sector peers

🟢Current valuation is approximately 16% below its 1.4y median of 113.0x. 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 685% above the peer median of 12.2x.

vs. its own history

Fair

113.0x median over 17 months · -16%

vs. sector peers

Expensive

12.2x median of 4 peers · +685%

vs. generic bands

Expensive

Above 35x

P/E (Trailing)

95.4x

P/B

10.42x

EV/EBITDA

37.9x

PEG

6.62

Dividend Yield

0.23%

What's Good / What's Bad

🟢 What's Going Well4

Margins are improving
EBITDA margin is up from 4.9% to 8.1% over 3 years.
Return on capital is rising
ROCE has improved from 18.7% to 20.8%.
High return on capital employed
ROCE of 20.8% 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 Attention1

Inventory building faster than sales
Inventory is up 100% against revenue growth of 13% — stock may not be moving.

Red Flags

1 item require attention · 1 high

🔴Inventory building faster than salesFinancial
Inventory up 100% against revenue up 13% — stock may not be moving.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 20.8% 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 4.9% to 8.1%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
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?

A premium to the sector to defend
It trades 685% above the peer median. That premium needs a reason that persists, or it closes.
Growth barely outpaces inflation
Revenue compounding at 4.3% 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.
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.

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

1EBITDA margin holds above 6%✓ 8.1%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA stays below 2x✗ 2.6x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
3Interest cover stays above 3x✗ 2.4x
How much operating profit can fall before interest stops being comfortably covered.
4Revenue growth stays above 4% a year✓ 4.3% CAGR
Latest reported year was 95.5%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
5Free cash flow remains positive✓ ₹7 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

₹1,755 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

95.4x

Expensive

Expensive — verify against sector peers

P/B Ratio

10.42x

Rich

Steep premium to book — needs high, durable returns to justify

EPS (TTM)

₹1.09

Profitable

Profitable on a per-share basis

ROE

9.1%

Moderate

Moderate capital efficiency

ROCE

20.8%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.76x

Moderate

Moderate leverage

Revenue Growth (YoY)

95.5%

Healthy

Healthy top-line growth

Profit Growth (YoY)

300.0%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.23%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

₹7 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

CMP

₹104

Operating Margin

4.2%

Weak

Thin margins leave little room for error

Net Margin

2.6%

Weak

Very little revenue reaches the bottom line

Current Ratio

1.69

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.47

Defensive

Steadier than the market

52W Range Position

85%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

96.0 / 90.0

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

67.0

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹543 Cr	₹532 Cr	₹613 Cr	₹616 Cr	+4.3%
EBITDA	₹27 Cr	₹31 Cr	₹37 Cr	₹50 Cr	+22.7%
EBITDA Margin	4.9%	5.8%	6.0%	8.1%	—
PAT (Net Profit)	₹10 Cr	₹8 Cr	₹9 Cr	₹15 Cr	+14.4%
EPS	₹0.65	₹0.52	₹0.54	₹0.92	+12.3%
ROE	11.7%	8.5%	5.8%	9.1%	—
ROCE	18.7%	21.3%	17.7%	20.8%	—
Total Debt	₹112 Cr	₹120 Cr	₹117 Cr	₹129 Cr	+4.8%
Free Cash Flow	₹21 Cr	₹1 Cr	-₹27 Cr	₹7 Cr	-29.5%

🟢 Revenue has grown at 4.3% a year over 3 years.

🟢 EBITDA has grown at 22.7% a year over 3 years.

🟢 EBITDA Margin has risen from 4.9% to 8.1% over 3 years (+3.1 pts).

🟢 PAT (Net Profit) has grown at 14.4% a year over 3 years.

🟢 EPS has grown at 12.3% a year over 3 years.

🔴 ROE has fallen from 11.7% to 9.1% over 3 years (-2.6 pts).

🟢 ROCE has risen from 18.7% to 20.8% over 3 years (+2.0 pts).

🔴 Total Debt has grown at 4.8% a year over 3 years.

🔴 Free Cash Flow has shrunk at 29.5% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹371 Cr

Total Liabilities

₹201 Cr

Total Debt

₹129 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

₹22 Cr

Capex

-₹15 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

75.7%

Corporate Actions

Dividend Rate

₹0.24

Ex-Dividend Date

24 Sept 2026

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

3 positive3 general

Should You Be Adding Arfin India (NSE:ARFIN) To Your Watchlist Today?

Simply Wall Street, 24 Sept

Arfin India Limited (ARFIN.NS) Holds Near ₹82.68 as Traders Eye ₹78.55 Support and ₹86.81 Resistance - Liquidity Order Flow

https://www.siam.in/, 16 Sept

Dividend record date 23 Sept alert: Last call for investors today! Buy Arfin India, Engineers India, others to qualify

Livemint, 23 SeptCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

Arfin India Secures ₹300 Crore Contract for Supply of Specialised Aluminium Products

Sahi, 19 JunOrder win

🟢Potentially positiveAn order or contract win, which adds to future revenue. How much depends on its size against annual sales and on when it is executed.

Arfin India net profit surges 277% in Q1FY27 to ₹407.45 lakh

scanx.trade, 11 AugResults

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

Arfin India Ltd. 52 Week High Streak: what investors watch

Univest, 09 Oct

Watch Items

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

DalalBaazaar Thesis

🟡Business QualityAdequate11.1/20

🟢Financial HealthStrong13/20

🟡GrowthModest10.4/20

🔴ProfitabilityWeak4.5/15

🔴ValuationDemanding5.3/15

🟡RiskModerate5.2/10

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. 1 high-severity red flag sits above this conclusion and should be read first.

This thesis breaks if

✓EBITDA margin holds above 6%8.1%
✗Debt / EBITDA stays below 2x2.6x
✗Interest cover stays above 3x2.4x
✓Revenue growth stays above 4% a year4.3% CAGR
✓Free cash flow remains positive₹7 Cr