Ashapura Minechem Limited

Basic Materials — Other Industrial Metals & Mining · NSE

₹467.90+₹2.90 (+0.62%)

DalalBaazaar Score

69 / 100

🟢 Good

Verdict

REASONABLE

Risk

Moderate

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

In simple words: Strong business and financial position, with modest growth. Nothing obvious stands out as stretched — the usual checks on business quality and management still apply.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:59 pm

Understanding the Business

Company site ↗

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

What does this company do?

Ashapura Minechem Limited is involved in the mining, manufacturing, and trading of various minerals and its derivative products in India and internationally.

IndustryOther Industrial Metals & Mining

SectorBasic Materials

Employees1,574

Annual revenue₹5,187 Cr

How does it make money?

Turns over ₹5,187 Cr a year. Of every ₹100 of sales, about ₹8 reaches shareholders as profit, with ₹13 left at the operating level before interest, tax and depreciation. Each of its 1,574 employees supports ₹3.30 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹3.30 Cr

Who are its competitors?

The closest listed comparisons in its industry are HINDALCO INDUSTRIES LTD, VEDANTA LIMITED, TATA STEEL 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?Some evidence

ROCE of 20.1% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

Peer median ROE12.0%

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 +189% while net margin moved +19% 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+189%

Margin effect+19%

DalalBaazaar Score

69/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of 0.62 — 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

Quality vs. Valuation

Company Quality

70/ 100

Good

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

Valuation

75/ 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.

Historical Valuation

Current P/E

11.0x

3Y Median

20.1x

40 monthly readings · mean 19.4x · range 7.8x–32.9x

Sector Median

12.3x

median of 3 sector peers

🟢Current valuation is approximately 45% below its 3y median of 20.1x. 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 is priced broadly in line with the peer median of 12.3x.

vs. its own history

Cheap

20.1x median over 40 months · -45%

vs. sector peers

Fair

12.3x median of 3 peers · -11%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

8.0x

PEG

0.22

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 17.6% to 24.3%.
Return on capital is rising
ROCE has improved from 12.7% to 20.1%.
High return on capital employed
ROCE of 20.1% 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

Margins are compressing
EBITDA margin has slipped from 15.2% to 13.5% over 3 years.

Red Flags

1 item require attention · 1 high

🔴Debt has risen sharplyFinancial
Total debt is up 90% over 3 years, from ₹758 Cr to ₹1,444 Cr.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 20.1% 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.
Priced below its own history
The stock trades 45% 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.
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?

Margins are being competed away
EBITDA margin has fallen from 15.2% to 13.5%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
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 32% a year✓ 42.4% CAGR
Latest reported year was 19.2%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 11%✓ 13.5%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA stays below 2x✗ 2.1x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
4Free cash flow remains positive✓ ₹184 Cr
Profit that never becomes cash eventually stops being profit.
5ROCE stays above 17%✓ 20.1%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

9 / 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

6 good · 5 neutral · 0 weak

Market Cap

₹4,470 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

11.0x

Cheap

Cheap against the generic band

P/B Ratio

2.71x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹42.59

Profitable

Profitable on a per-share basis

ROE

24.3%

Strong

Strong capital efficiency

ROCE

20.1%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.88x

Moderate

Moderate leverage

Revenue Growth (YoY)

19.2%

Healthy

Healthy top-line growth

Profit Growth (YoY)

5.0%

Modest

Slow profit growth

Dividend Yield

0.43%

Modest

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

Free Cash Flow

₹184 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

9.4%

Average

Average margins

Net Margin

7.4%

Average

Average bottom-line conversion

Current Ratio

1.36

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.62

Defensive

Steadier than the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

497.5 / 550.2

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

34.0

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹1,797 Cr	₹2,620 Cr	₹2,720 Cr	₹5,187 Cr	+42.4%
EBITDA	₹274 Cr	₹356 Cr	₹469 Cr	₹699 Cr	+36.7%
EBITDA Margin	15.2%	13.6%	17.2%	13.5%	—
PAT (Net Profit)	₹117 Cr	₹287 Cr	₹296 Cr	₹401 Cr	+50.8%
EPS	₹12.79	₹30.5	₹31.46	₹42.02	+48.7%
ROE	17.6%	30.9%	23.8%	24.3%	—
ROCE	12.7%	21.4%	17.7%	20.1%	—
Total Debt	₹758 Cr	₹984 Cr	₹1,163 Cr	₹1,444 Cr	+24.0%
Free Cash Flow	-₹40 Cr	-₹184 Cr	-₹211 Cr	₹184 Cr	—

🟢 Revenue has grown at 42.4% a year over 3 years.

🟢 EBITDA has grown at 36.7% a year over 3 years.

🔴 EBITDA Margin has fallen from 15.2% to 13.5% over 3 years (-1.7 pts).

🟢 PAT (Net Profit) has grown at 50.8% a year over 3 years.

🟢 EPS has grown at 48.7% a year over 3 years.

🟢 ROE has risen from 17.6% to 24.3% over 3 years (+6.7 pts).

🟢 ROCE has risen from 12.7% to 20.1% over 3 years (+7.4 pts).

🔴 Total Debt has grown at 24.0% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹40 Cr to ₹184 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹4,698 Cr

Total Liabilities

₹3,053 Cr

Cash & Equivalents

₹316 Cr

Operating Cash Flow

₹463 Cr

Capex

-₹279 Cr

Shareholding (proxy)

Institutional Holding

17.6%

Insider Holding

49.8%

Corporate Actions

Dividend Rate

₹2

Ex-Dividend Date

22 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%

Recent News

2 mixed4 general

Ashapura Minechem reports ₹108.31 Cr net profit in Q1FY27

scanx.trade, 07 Aug

Here's Why We Think Ashapura Minechem (NSE:ASHAPURMIN) Might Deserve Your Attention Today

Simply Wall Street, 30 May

Ashapura Minechem Share Price Target 2027, 2028 and 2030: Long Term Analyst Forecast

Univest, 07 AugAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Ashapura Minechem Ltd leads losers in 'A' group

Business Standard, 10 Aug

Could The Market Be Wrong About Ashapura Minechem Limited (NSE:ASHAPURMIN) Given Its Attractive Financial Prospects?

Simply Wall Street, 05 Feb

Why Is Ashapura Minechem Share Price Falling: Key Reasons and Investor Analysis 2026

Univest, 14 MayPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

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.

DalalBaazaar Thesis

StrongBusiness Quality · Growth · Profitability · Valuation

MiddlingFinancial Health

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

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