Ashnisha Industries Limited

Basic Materials — Steel · BSE

₹2.27−₹0.01 (−0.44%)

DalalBaazaar Score

35 / 100

🔴 Weak

Verdict

CAUTION

Risk

Very High

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

In simple words: The business is earning a fairly low return on the money invested in it, though profits are falling even as sales grow. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:44 pm

Understanding the Business

Company site ↗

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

What does this company do?

Ashnisha Industries Limited engages in the trading of software, electronic, and IT products. The company operates through four segments: Steel; Trading of Software, Electronic and IT Product; Trading of Goods; and Others.

IndustrySteel

SectorBasic Materials

Employees2

Annual revenue₹13 Cr

How does it make money?

Turns over ₹13 Cr a year. Of every ₹100 of sales, about ₹2 reaches shareholders as profit, with ₹10 left at the operating level before interest, tax and depreciation. Each of its 2 employees supports ₹6.42 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹6.42 Cr

Who are its competitors?

The closest listed comparisons in its industry are TATA STEEL LIMITED, JSW STEEL LIMITED, JINDAL STEEL LIMITED, STEEL AUTHORITY OF INDIA. 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 0.3% 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 ROE10.8%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved -35% while net margin moved -58% 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-35%

Margin effect-58%

DalalBaazaar Score

35/ 100

Weak

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 13.2% a year
✗ Profit has declined at 35.1% a year
✗ Profit fell 83.3% in the latest year

Quality vs. Valuation

Company Quality

32/ 100

Weak

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

Valuation

29/ 100

Expensive

What you are being asked to pay, ignoring how good the business is.

Weak on business quality and not cheap enough to compensate.

Historical Valuation

Current P/E

227.0x

3Y Median

116.6x

40 monthly readings · mean 122.3x · range 35.3x–272.0x

Sector Median

18.2x

median of 4 sector peers

⚠️Current valuation is approximately 95% above its 3y median of 116.6x. Paying more than usual needs a reason — faster growth, a better balance sheet, or a re-rating you believe in.

⚠️Against its sector it trades 1149% above the peer median of 18.2x.

vs. its own history

Expensive

116.6x median over 40 months · +95%

vs. sector peers

Expensive

18.2x median of 4 peers · +1149%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

45.7x

PEG

—

What's Good / What's Bad

🟢 What's Going Well1

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

7 items require attention · 4 high · 3 watch

🔴Debt has risen sharplyFinancial
Total debt is up 219% over 3 years, from ₹2 Cr to ₹5 Cr.
🔴High leverageFinancial
Debt/Equity of 4.26x — earnings must service borrowings before shareholders see anything.
🔴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.
🔴Receivables growing faster than salesFinancial
Receivables up 28% against revenue up -35% — sales are being booked faster than they are collected.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹49 Cr in the latest year.
🟡Profit is decliningFinancial
Net profit is down 73% over 3 years.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 168% over 3 years — each existing share owns a smaller slice of the company.

Investment Thesis

🟢 Bull CaseWhat could make this work?

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 4.2x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
Sales are being booked faster than collected
Receivables are up 28% against revenue up -35%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
The price already assumes success
The stock trades 95% above its own median multiple. At this level the business has to deliver just to stand still, and a stumble is repriced twice — lower earnings on a lower multiple.
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

1EBITDA margin holds above 8%✓ 9.9%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA falls below 3x✗ 4.2x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
3Free cash flow remains positive✗ -₹49 Cr
Profit that never becomes cash eventually stops being profit.
4ROCE stays above 8%✗ 0.3%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.
5Valuation vs its own median of 116.6x✗ 227.0x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

3 / 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

3 good · 2 neutral · 6 weak

Market Cap

₹60 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

227.0x

Expensive

Expensive — verify against sector peers

P/B Ratio

0.62x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹0.01

Profitable

Profitable on a per-share basis

ROE

0.2%

Weak

Weak capital efficiency

ROCE

0.3%

Weak

Low return on total capital employed

Debt/Equity

4.26x

High

High leverage

Revenue Growth (YoY)

286.9%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-83.3%

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

-₹49 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

-14.0%

Weak

Thin margins leave little room for error

Net Margin

1.2%

Weak

Very little revenue reaches the bottom line

Current Ratio

16.23

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

-0.24

Defensive

Steadier than the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

2.4 / 2.8

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

28.1

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹20 Cr	₹12 Cr	₹5 Cr	₹13 Cr	-13.2%
EBITDA	₹2 Cr	₹2 Cr	₹3 Cr	₹1 Cr	-11.4%
EBITDA Margin	9.3%	18.9%	57.9%	9.9%	—
PAT (Net Profit)	₹1 Cr	₹1 Cr	₹0 Cr	₹0 Cr	-35.1%
EPS	₹0.13	₹0.08	₹0.02	₹0.01	-57.5%
ROE	1.6%	1.6%	0.3%	0.2%	—
ROCE	1.6%	1.8%	2.3%	0.3%	—
Total Debt	₹2 Cr	₹4 Cr	₹46 Cr	₹5 Cr	+47.2%
Free Cash Flow	-₹9 Cr	₹3 Cr	-₹13 Cr	-₹49 Cr	—

🔴 Revenue has shrunk at 13.2% a year over 3 years.

🔴 EBITDA has shrunk at 11.4% a year over 3 years.

🟡 EBITDA Margin has held roughly flat at 9.9% over 3 years.

🔴 PAT (Net Profit) has shrunk at 35.1% a year over 3 years.

🔴 EPS has shrunk at 57.5% a year over 3 years.

🔴 ROE has fallen from 1.6% to 0.2% over 3 years (-1.4 pts).

🔴 ROCE has fallen from 1.6% to 0.3% over 3 years (-1.3 pts).

🔴 Total Debt has grown at 47.2% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹136 Cr

Total Liabilities

₹9 Cr

Cash & Equivalents

₹7 Cr

Operating Cash Flow

-₹42 Cr

Capex

-₹7 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

35.3%

Peer Comparison

Company	P/E	ROE
TATA STEEL LIMITED	19.8x	10.8%
JSW STEEL LIMITED	12.0x	24.7%
JINDAL STEEL LIMITED	39.1x	5.3%
STEEL AUTHORITY OF INDIA	16.5x	7.1%

Recent News

1 positive1 negative4 general

Ashnisha Industries FY26 revenue surges to ₹843.86 lakh

scanx.trade, 14 OctResults

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

Ashnisha Industries - 10 penny stocks surged up to 490% in 6 months. Do you own any?

The Economic Times, 03 May

Ashnisha Industries consolidated net profit declines 66.67% in the June 2026 quarter

Business Standard, 14 AugResults

🔴Potentially negativeReported deterioration, which feeds the growth and margin inputs on this page directly.

BSE Issues Investor Caution On This Smallcap Stock Amid Unsolicited Trading Messages; Do You Own This?

Dalal Street Investment Journal, 25 May

Ashnisha Industries - 11 penny stocks plunge up to 55% in a month. Should investors worry?

The Economic Times, 28 Jun

Penny stock under ₹5 soars 46% in November, 63% in seven weeks — what’s driving it?

Livemint, 10 Nov

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 oversold territory — could mean either a bargain or a stock still falling for good reason. Check the 'why' before assuming reversal.

DalalBaazaar Thesis

MiddlingFinancial Health

WeakBusiness Quality · Growth · Profitability · Valuation · Risk

Points for each in the Score ↑

Weak on the fundamentals

Poor scores on business quality without a price low enough to compensate. There is no obvious argument for owning this over a stronger company at a similar valuation. 4 high-severity red flags sit above this conclusion and should be read first.

4 of 5 tripwires tripped — Debt / EBITDA falls below 3x; Free cash flow remains positive; ROCE stays above 8%; Valuation vs its own median of 116.6x · see Key things to watch ↑