Arigato Universe Limited

Basic Materials — Building Materials · BSE

₹37.21−₹1.95 (−4.98%)

DalalBaazaar Score

63 / 100

🟢 Good

Verdict

REASONABLE

Risk

High

Driven by moderate debt load, 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, 7:01 pm

Understanding the Business

Company site ↗

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

What does this company do?

Arigato Universe Limited manufactures and trades in construction-related materials and commodities in India. It operates through Manufacturing/Trading and Services segments.

IndustryBuilding Materials

SectorBasic Materials

Employees25

Annual revenue₹29 Cr

How does it make money?

Turns over ₹29 Cr a year. Of every ₹100 of sales, about ₹8 reaches shareholders as profit, with ₹7 left at the operating level before interest, tax and depreciation. Each of its 25 employees supports ₹1.14 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹1.14 Cr

Who are its competitors?

The closest listed comparisons in its industry are ULTRATECH CEMENT LIMITED, GRASIM INDUSTRIES LTD, AMBUJA CEMENTS LTD, SHREE CEMENT 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?Little sign of one

Returns on capital of 11.0% 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.

Peer median ROE7.4%

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +8484% while net margin moved -42% 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+8484%

Margin effect-42%

DalalBaazaar Score

63/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of -0.21 — historically steadier than the index
✗ 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

63/ 100

Average

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

Valuation

78/ 100

Cheap

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

8.6x

3Y Median

155.9x

40 monthly readings · mean 331.4x · range 9.0x–1303.7x

Sector Median

36.2x

median of 4 sector peers

🟢Current valuation is approximately 94% below its 3y median of 155.9x. 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 76% below the peer median of 36.2x.

vs. its own history

Cheap

155.9x median over 40 months · -94%

vs. sector peers

Cheap

36.2x median of 4 peers · -76%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

15.5x

PEG

0.03

What's Good / What's Bad

🟢 What's Going Well2

Return on equity is rising
ROE has improved from 0.4% to 23.8%.
Return on capital is rising
ROCE has improved from 0.5% to 11.0%.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

4 items require attention · 4 high

🔴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.
🔴Profit up while operating cash flow fallsFinancial
Reported profit rose but cash generated by operations declined — worth checking whether earnings are being supported by non-cash items or working capital.
🔴Significant margin compressionFinancial
EBITDA margin has fallen 10.5 points, from 17.8% to 7.3%.
🔴Inventory building faster than salesFinancial
Inventory up 63169% against revenue up 8484% — stock may not be moving.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Priced below its own history
The stock trades 94% 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 76% 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 17.8% to 7.3%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
The debt load needs earnings to hold up
Debt is 4.7x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
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
4 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 256% a year✓ 341.1% CAGR
Latest reported year was 300.7%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 5%✓ 7.3%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA falls below 3x✗ 4.7x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
4Free cash flow remains positive✗ -₹7 Cr
Profit that never becomes cash eventually stops being profit.
5ROCE stays above 8%✓ 11.0%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

6 / 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 · 5 neutral · 1 weak

Market Cap

₹23 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

8.6x

Cheap

Cheap against the generic band

P/B Ratio

2.27x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹4.32

Profitable

Profitable on a per-share basis

ROE

32.1%

Strong

Strong capital efficiency

ROCE

11.0%

Moderate

Moderate return on the capital in the business

Debt/Equity

1.02x

Moderate

Moderate leverage

Revenue Growth (YoY)

300.7%

Healthy

Healthy top-line growth

Profit Growth (YoY)

168.8%

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

-₹7 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

ROA

4.5%

Average

Average asset productivity

Operating Margin

11.6%

Average

Average margins

Net Margin

8.4%

Average

Average bottom-line conversion

Current Ratio

2.41

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

-0.21

Defensive

Steadier than the market

52W Range Position

17%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

37.2 / 48.6

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

62.7

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹0 Cr	₹2 Cr	₹7 Cr	₹29 Cr	+341.1%
EBITDA	₹0 Cr	₹0 Cr	₹1 Cr	₹2 Cr	+228.1%
EBITDA Margin	17.8%	16.7%	11.1%	7.3%	—
PAT (Net Profit)	₹0 Cr	₹0 Cr	-₹3 Cr	₹2 Cr	+268.3%
EPS	₹0.07	₹0.39	₹-5.42	₹3.73	+276.3%
ROE	0.4%	2.2%	-45.5%	23.8%	—
ROCE	0.5%	2.7%	-28.4%	11.0%	—
Total Debt	—	—	₹4 Cr	₹10 Cr	—
Free Cash Flow	-₹0 Cr	-₹1 Cr	-₹6 Cr	-₹7 Cr	—

🟢 Revenue has grown at 341.1% a year over 3 years.

🟢 EBITDA has grown at 228.1% a year over 3 years.

🔴 EBITDA Margin has fallen from 17.8% to 7.3% over 3 years (-10.5 pts).

🟢 PAT (Net Profit) has grown at 268.3% a year over 3 years.

🟢 EPS has grown at 276.3% a year over 3 years.

🟢 ROE has risen from 0.4% to 23.8% over 3 years (+23.4 pts).

🟢 ROCE has risen from 0.5% to 11.0% over 3 years (+10.4 pts).

Balance Sheet & Cash Flow — FY2026

Total Assets

₹30 Cr

Total Liabilities

₹21 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

-₹6 Cr

Capex

-₹0 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

78.3%

Corporate Actions

Ex-Dividend Date

15 Sept 1995

Peer Comparison

Company	P/E	ROE
ULTRATECH CEMENT LIMITED	37.6x	11.1%
GRASIM INDUSTRIES LTD	34.8x	5.5%
AMBUJA CEMENTS LTD	20.4x	7.4%
SHREE CEMENT LIMITED	49.7x	7.0%

Recent News

1 mixed5 general

Arigato Universe approves preferential issue of 1.5 crore shares at FY26 AGM

scanx.trade, 29 Sept

ARIGATO UNIVERSE LIMITED Share Price

Upstox, 05 May

Arigato Universe Ltd is Rated Hold by MarketsMOJO

MarketsMojo, 26 May

Arigato Universe approves ₹24 cr preferential allotment at ₹16 per share

scanx.trade, 02 Sept

Spright Agro reports standalone net loss of Rs 0.01 crore in the June 2026 quarter

Business Standard, 14 AugResults

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

Arigato Universe seeks approval for ₹24 crore preferential issue at AGM

scanx.trade, 03 Sept

Watch Items

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

DalalBaazaar Thesis

StrongProfitability · Valuation

MiddlingBusiness Quality · Financial Health · Growth

WeakRisk

Points for each in the Score ↑

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

2 of 5 tripwires tripped — Debt / EBITDA falls below 3x; Free cash flow remains positive · see Key things to watch ↑