Aristo Bio-Tech and Lifescience Limited

Sector n/a · NSE

₹89.15−₹4.25 (−4.55%)

DalalBaazaar Score

62 / 100

🟢 Good

Verdict

REASONABLE

Risk

High

Driven by moderate debt load, micro-cap size, which brings thin liquidity.

In simple words: Strong business and financial position, with both sales and profits growing well. Thin profit margins are the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 8:28 pm

Understanding the Business

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

How does it make money?

Turns over ₹364 Cr a year. Of every ₹100 of sales, about ₹2 reaches shareholders as profit, with ₹4 left at the operating level before interest, tax and depreciation.

What is its competitive advantage?The numbers suggest a real one

ROCE has stayed above 15% in every year available and stands at 23.6%. Returns that high normally get competed away; when they persist, something is protecting them. What that something is — brand, scale, switching costs, regulation — the accounts cannot tell you.

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 +67% while net margin moved +21% 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+67%

Margin effect+21%

DalalBaazaar Score

62/ 100

Good

Weighted across six categories. Every point is explained below.

✗ Micro Cap: thinner liquidity and sharper drawdowns are normal

Quality vs. Valuation

Company Quality

71/ 100

Good

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

Valuation

88/ 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.

vs. its own history

Not enough price and earnings history

vs. sector peers

Not enough peers with a usable P/E

vs. generic bands

No P/E available

EV/EBITDA

6.2x

PEG

—

What's Good / What's Bad

🟢 What's Going Well5

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 11.8% to 16.3%.
Return on capital is rising
ROCE has improved from 17.2% to 23.6%.
High return on capital employed
ROCE of 23.6% 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 · 2 high · 1 watch

🔴Debt has risen sharplyFinancial
Total debt is up 57% over 3 years, from ₹22 Cr to ₹35 Cr.
🔴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.
🟡Inventory building faster than salesFinancial
Inventory up 105% against revenue up 67% — stock may not be moving.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 23.6% 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.
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?

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
2 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 14% a year✓ 18.6% CAGR
Latest reported year was 14.3%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 2%✓ 4.2%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA stays below 2x✗ 2.3x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
4Free cash flow remains positive✓ ₹6 Cr
Profit that never becomes cash eventually stops being profit.
5ROCE stays above 21%✓ 23.6%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

7 / 9 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
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

5 good · 6 neutral · 0 weak

Market Cap

₹61 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

Not available

No data

Source didn't return this field

P/B Ratio

Not available

No data

Source didn't return this field

EPS (TTM)

Not available

No data

Source didn't return this field

ROE

16.3%

Strong

Strong capital efficiency

ROCE

23.6%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.80x

Moderate

Moderate leverage

Revenue Growth (YoY)

14.3%

Healthy

Healthy top-line growth

Profit Growth (YoY)

76.8%

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

₹6 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Gross Margin

6.9%

Proxy

Operating margin unavailable — showing gross margin instead

Net Margin

2.0%

Weak

Very little revenue reaches the bottom line

Current Ratio

1.26

Comfortable

Healthy short-term liquidity

Technical Snapshot

SMA 20 / SMA 50

98.4 / 103.6

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

22.2

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹218 Cr	₹245 Cr	₹318 Cr	₹364 Cr	+18.6%
EBITDA	₹8 Cr	₹9 Cr	₹10 Cr	₹15 Cr	+21.2%
EBITDA Margin	3.9%	3.6%	3.1%	4.2%	—
PAT (Net Profit)	₹4 Cr	₹4 Cr	₹4 Cr	₹7 Cr	+26.3%
EPS	₹6.72	₹5.72	₹5.97	—	—
ROE	11.8%	11.6%	10.9%	16.3%	—
ROCE	17.2%	16.9%	16.6%	23.6%	—
Total Debt	₹22 Cr	₹21 Cr	₹22 Cr	₹35 Cr	+16.3%
Free Cash Flow	-₹7 Cr	₹1 Cr	₹5 Cr	₹6 Cr	—

🟢 Revenue has grown at 18.6% a year over 3 years.

🟢 EBITDA has grown at 21.2% a year over 3 years.

🟡 EBITDA Margin has held roughly flat at 4.2% over 3 years.

🟢 PAT (Net Profit) has grown at 26.3% a year over 3 years.

🟢 ROE has risen from 11.8% to 16.3% over 3 years (+4.5 pts).

🟢 ROCE has risen from 17.2% to 23.6% over 3 years (+6.4 pts).

🔴 Total Debt has grown at 16.3% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹7 Cr to ₹6 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹155 Cr

Total Liabilities

₹111 Cr

Cash & Equivalents

₹3 Cr

Operating Cash Flow

₹9 Cr

Capex

-₹3 Cr

Recent News

1 positive5 general

Here's Why We Think Aristo Bio-Tech and Lifescience (NSE:ARISTO) Might Deserve Your Attention Today

Simply Wall Street, 09 Jun

Aristo Bio-Tech and Lifescience Ltd. Share Price Live Today

CNBC TV18, 17 Jul

Micro-cap agrochemical company received an order worth Rs 2,51,38,100 from National Fertilizers Ltd

Dalal Street Investment Journal, 25 Aug

Aristo Bio-Tech FY25 PAT Rises to Rs 4.06 Cr, Revenue Jumps 30 Percent to Rs 318.09 Cr

Business Standard, 31 MayResults

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

Aristo Bio-Tech & Lifescience Ltd (ARISTO) Share Price

Business Today, 17 Feb

ARISTO Stock Price and Chart — NSE:ARISTO

TradingView, 13 Feb

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.
Sector/industry classification unavailable — verify manually for peer comparison.
3 metrics couldn't be retrieved for this stock — this is more common for smaller or thinly-covered listings.
RSI is in oversold territory — could mean either a bargain or a stock still falling for good reason. Check the 'why' before assuming reversal.

DalalBaazaar Thesis

StrongGrowth · Profitability

MiddlingBusiness Quality · Financial 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. 2 high-severity red flags sit above this conclusion and should be read first.

1 of 5 tripwires tripped — Debt / EBITDA stays below 2x · see Key things to watch ↑