Aritas Vinyl Limited

Consumer Cyclical — Apparel Manufacturing · BSE

₹15.00+₹0.20 (+1.35%)

DalalBaazaar Score

58 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

High

Driven by negative free cash flow, micro-cap size, which brings thin liquidity, falling profits.

In simple words: Reasonable but unspectacular business quality, though profits are falling even as sales grow. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:56 pm

Understanding the Business

Company site ↗

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

What does this company do?

Aritas Vinyl Limited engages in the manufacturing of artificial leather in India and internationally.

IndustryApparel Manufacturing

SectorConsumer Cyclical

Employees73

Annual revenue₹101 Cr

How does it make money?

Turns over ₹101 Cr a year. Of every ₹100 of sales, about ₹5 reaches shareholders as profit, with ₹10 left at the operating level before interest, tax and depreciation. Each of its 73 employees supports ₹1.38 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹1.38 Cr

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.

Compared side by side in Peers ↓

What is its competitive advantage?Little sign of one

Returns on capital of 12.9% 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 ROE25.9%

What has been driving growth?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved +97% while net margin moved +142% 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+97%

Margin effect+142%

DalalBaazaar Score

58/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ 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

57/ 100

Average

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 reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

4.4x

Sector Median

69.2x

median of 4 sector peers

🟢Against its sector it trades 94% below the peer median of 69.2x.

vs. its own history

Not enough price and earnings history

vs. sector peers

Cheap

69.2x median of 4 peers · -94%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

6.1x

PEG

0.06

What's Good / What's Bad

🟢 What's Going Well3

Margins are improving
EBITDA margin is up from 6.5% to 9.6% over 3 years.
Return on capital is rising
ROCE has improved from 8.4% to 12.9%.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention1

Return on equity is falling
ROE has dropped from 23.0% to 8.6% — each rupee of shareholder capital earns less than it did.

Red Flags

2 items require attention · 1 high · 1 watch

🔴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.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹17 Cr in the latest year.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 6.5% to 9.6%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Cheaper than its peers
It trades 94% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
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?

The debt load needs earnings to hold up
Debt is 3.1x 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 23.0% to 8.6%. 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.
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

1Revenue growth stays above 19% a year✓ 25.4% CAGR
Latest reported year was 7.2%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 8%✓ 9.6%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA falls below 3x✗ 3.1x
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✗ -₹17 Cr
Profit that never becomes cash eventually stops being profit.
5Interest cover stays above 3x✓ 3.3x
How much operating profit can fall before interest stops being comfortably covered.

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

4 good · 5 neutral · 2 weak

Market Cap

₹30 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

4.4x

Cheap

Cheap against the generic band

P/B Ratio

0.54x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹3.4

Profitable

Profitable on a per-share basis

ROE

12.6%

Moderate

Moderate capital efficiency

ROCE

12.9%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.56x

Low

Conservative leverage

Revenue Growth (YoY)

7.2%

Modest

Modest growth

Profit Growth (YoY)

-14.7%

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

-₹21 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

ROA

4.7%

Average

Average asset productivity

Operating Margin

6.0%

Average

Average margins

Net Margin

4.7%

Average

Average bottom-line conversion

Current Ratio

1.92

Comfortable

Healthy short-term liquidity

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

13.5 / 13.2

Bullish alignment (short > long)

RSI (14)

82.2

Overbought zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹51 Cr	₹69 Cr	₹98 Cr	₹101 Cr	+25.4%
EBITDA	₹3 Cr	₹5 Cr	₹9 Cr	₹10 Cr	+43.1%
EBITDA Margin	6.5%	7.0%	8.9%	9.6%	—
PAT (Net Profit)	₹1 Cr	₹2 Cr	₹4 Cr	₹5 Cr	+68.4%
EPS	₹0.51	₹0.85	₹2.08	—	—
ROE	23.0%	27.8%	20.0%	8.6%	—
ROCE	8.4%	10.2%	21.3%	12.9%	—
Total Debt	₹33 Cr	₹53 Cr	₹37 Cr	₹31 Cr	-2.6%
Free Cash Flow	-₹9 Cr	-₹17 Cr	₹8 Cr	-₹17 Cr	—

🟢 Revenue has grown at 25.4% a year over 3 years.

🟢 EBITDA has grown at 43.1% a year over 3 years.

🟢 EBITDA Margin has risen from 6.5% to 9.6% over 3 years (+3.2 pts).

🟢 PAT (Net Profit) has grown at 68.4% a year over 3 years.

🔴 ROE has fallen from 23.0% to 8.6% over 3 years (-14.4 pts).

🟢 ROCE has risen from 8.4% to 12.9% over 3 years (+4.5 pts).

🟢 Total Debt has shrunk at 2.6% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹111 Cr

Total Liabilities

₹56 Cr

Cash & Equivalents

₹1 Cr

Operating Cash Flow

-₹14 Cr

Capex

-₹3 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

58.2%

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

6 general

Aritas Vinyl Limited Share Price - Live ARITAS Stock Price & Chart

Upstox, 05 May

Aritas Vinyl - 10 SME IPOs that have declined up to 82% in 2026. Do you have any in your portfolio?

The Economic Times, 18 Sept

Compare with

Equitymaster, 30 Sept

Aritas Vinyl IPO Date, Price, GMP, Review, Details

IndiaIPO, 23 Jan

Aritas Vinyl IPO Day 1: Issue subscribed 30% so far. Check GMP, issue details, more.

Livemint, 16 Jan

Aritas Vinyl IPO Opens Friday with Zero Grey Market Premium, Priced at ₹40-47 Per Share

scanx.trade, 15 Jan

Watch Items

Trading very close to its 52-week low — worth checking whether this reflects a temporary setback or a structural problem.
Cross-check against the company's latest quarterly filing / investor presentation before acting.
RSI is in overbought territory — momentum entries here carry more short-term pullback risk.

DalalBaazaar Thesis

StrongGrowth · Valuation

MiddlingBusiness Quality · Financial Health

WeakProfitability · Risk

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. 1 high-severity red flag sits 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 ↑