Ascom Leasing & Investments Limited

Sector n/a · NSE

₹134.30+₹6.35 (+4.96%)

DalalBaazaar Score

54 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

High

Driven by high debt relative to equity, micro-cap size, which brings thin liquidity.

In simple words: Reasonable but unspectacular business quality, with modest growth. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:48 pm

Understanding the Business

The 60-second version of Ascom Leasing & Investments 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 ₹13 Cr a year. Of every ₹100 of sales, about ₹41 reaches shareholders as profit, with ₹59 left at the operating level before interest, tax and depreciation.

What is its competitive advantage?Little sign of one

Returns on capital of 12.8% 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.

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 +6% while net margin moved -1% 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+6%

Margin effect-1%

DalalBaazaar Score

54/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Revenue CAGR of only 2.1% — barely ahead of inflation
✗ Profit CAGR of only 1.8%

Quality vs. Valuation

Company Quality

56/ 100

Average

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

Valuation

35/ 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.

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

20.3x

PEG

—

What's Good / What's Bad

🟢 What's Going Well3

Margins are improving
EBITDA margin is up from 57.3% to 59.5% over 3 years.
Cash generation is improving
Free cash flow is up 166% over 3 years.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention1

Return on capital is falling
ROCE has declined from 17.0% to 12.8% — often a sign of competition or overexpansion.

Red Flags

2 items require attention · 2 high

🔴Debt has risen sharplyFinancial
Total debt is up 527% over 3 years, from ₹0 Cr to ₹2 Cr.
🔴High leverageFinancial
Debt/Equity of 4.29x — earnings must service borrowings before shareholders see anything.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 57.3% to 59.5%. 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?

Leverage amplifies any setback
Debt/Equity of 4.29x. Interest is payable whether or not the business has a good year.
Growth barely outpaces inflation
Revenue compounding at 2.1% 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.
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

1EBITDA margin holds above 57%✓ 59.5%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Revenue growth stays above 4% a year✗ 2.1% CAGR
Latest reported year was 0.6%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
3Free cash flow remains positive✓ ₹4 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.3x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 10%✓ 12.8%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

5 / 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

1 good · 9 neutral · 1 weak

Market Cap

₹157 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

9.5%

Moderate

Moderate capital efficiency

ROCE

12.8%

Moderate

Moderate return on the capital in the business

Debt/Equity

4.29x

High

High leverage

Revenue Growth (YoY)

0.6%

Modest

Modest growth

Profit Growth (YoY)

2.3%

Modest

Slow profit growth

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

₹4 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Gross Margin

85.5%

Proxy

Operating margin unavailable — showing gross margin instead

Net Margin

40.9%

Good

Strong bottom-line conversion

Current Ratio

6.07

Comfortable

Healthy short-term liquidity

Technical Snapshot

SMA 20 / SMA 50

206.3 / 219.0

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

0.0

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹12 Cr	₹12 Cr	₹13 Cr	₹13 Cr	+2.1%
EBITDA	₹7 Cr	₹7 Cr	₹7 Cr	₹8 Cr	+3.3%
EBITDA Margin	57.3%	55.9%	58.3%	59.5%	—
PAT (Net Profit)	₹5 Cr	₹5 Cr	₹5 Cr	₹5 Cr	+1.8%
EPS	₹4.24	₹4.24	₹4.36	—	—
ROE	12.5%	11.1%	10.3%	9.5%	—
ROCE	17.0%	14.4%	12.9%	12.8%	—
Total Debt	₹0 Cr	₹2 Cr	₹7 Cr	₹2 Cr	+84.4%
Free Cash Flow	₹2 Cr	-₹3 Cr	₹0 Cr	₹4 Cr	+38.6%

🟢 Revenue has grown at 2.1% a year over 3 years.

🟢 EBITDA has grown at 3.3% a year over 3 years.

🟢 EBITDA Margin has risen from 57.3% to 59.5% over 3 years (+2.2 pts).

🟡 PAT (Net Profit) has been broadly flat over 3 years (1.8% a year).

🔴 ROE has fallen from 12.5% to 9.5% over 3 years (-3.0 pts).

🔴 ROCE has fallen from 17.0% to 12.8% over 3 years (-4.1 pts).

🔴 Total Debt has grown at 84.4% a year over 3 years.

🟢 Free Cash Flow has grown at 38.6% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹60 Cr

Total Liabilities

₹5 Cr

Cash & Equivalents

₹5 Cr

Operating Cash Flow

₹5 Cr

Capex

-₹1 Cr

Recent News

6 general

Ascom Leasing & Investments Lower Circuit Streak: Day 2 Price and Data

Univest, 16 Oct

ASCOM LEASING & INVESTMENTS Stock/Share price , NSE/BSE Forecast News and Live Quotes

Equitymaster, 15 Oct

Ascom Leasing & Investments Lower Circuit Today: Price, Data and Peers

Univest, 15 Oct

SAHLIBHFI Stock Price and Chart — NSE:SAHLIBHFI

TradingView, 10 Apr

SOLLFEGE SMART ELECTRONICS LTD. Stock/Share price , NSE/BSE Forecast News and Live Quotes

Equitymaster, 09 Oct

₹42 to ₹439: Multibagger stock turns ₹1 lakh to ₹10 lakh in 1 year

Livemint, 04 Mar

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

StrongBusiness Quality

MiddlingFinancial Health · Profitability · Valuation

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

1 of 5 tripwires tripped — Revenue growth stays above 4% a year · see Key things to watch ↑