Ashirwad Steels & Industries Limited

Basic Materials — Steel · BSE

₹22.98+₹0.60 (+2.68%)

DalalBaazaar Score

49 / 100

🟡 Moderate

Verdict

CAUTION

Risk

Moderate

Driven by 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, with modest growth. 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 Ashirwad Steels & Industries Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Ashirwad Steels & Industries Limited engages in the investment and lending business in India. The company invests in shares, bonds, debentures, mutual funds, and securities; short-term financing; and is involved in money lending activities.

IndustrySteel

SectorBasic Materials

Employees7

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 3.2% 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%

DalalBaazaar Score

49/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Profit has declined at 50.6% a year

Quality vs. Valuation

Company Quality

43/ 100

Weak

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

Valuation

66/ 100

Fair

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

14.1x

3Y Median

14.4x

40 monthly readings · mean 12.6x · range 2.2x–24.1x

Sector Median

18.2x

median of 4 sector peers

🟡Currently trading close to its 3y median of 14.4x — the market is paying about what it usually pays for this company.

🟢Against its sector it trades 22% below the peer median of 18.2x.

vs. its own history

Fair

14.4x median over 40 months · -2%

vs. sector peers

Cheap

18.2x median of 4 peers · -22%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

9.0x

PEG

5.64

What's Good / What's Bad

🟢 What's Going Well1

Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 21.4% to 2.4% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 23.8% to 3.2% — often a sign of competition or overexpansion.

Red Flags

2 items require attention · 2 watch

🟡Free cash flow is negativeFinancial
Free cash flow was -₹4 Cr in the latest year.
🟡Profit is decliningFinancial
Net profit is down 88% over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Cheaper than its peers
It trades 22% 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?

Returns on shareholder capital are falling
ROE has dropped from 21.4% to 2.4%. 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.
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

1Free cash flow remains positive✗ -₹4 Cr
Profit that never becomes cash eventually stops being profit.
2ROCE stays above 8%✗ 3.2%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.
3Valuation vs its own median of 14.4x✓ 14.1x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

6 / 10 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✓ Healthy net margin (≥ 10%)
✗ Generates positive free cash flow
✓ 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 · 4 neutral · 3 weak

Market Cap

₹29 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

14.1x

Cheap

Cheap against the generic band

P/B Ratio

0.34x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹1.63

Profitable

Profitable on a per-share basis

ROE

2.4%

Weak

Weak capital efficiency

ROCE

3.2%

Weak

Low return on total capital employed

Debt/Equity

Not available

No data

Source didn't return this field

Revenue Growth (YoY)

33.4%

Healthy

Healthy top-line growth

Profit Growth (YoY)

2.5%

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 burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

30.3%

Good

Healthy core-business profitability

Net Margin

92.3%

Good

Strong bottom-line conversion

Current Ratio

5423.06

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.01

Defensive

Steadier than the market

52W Range Position

39%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

22.7 / 22.9

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

59.2

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
EBITDA	₹3 Cr	₹3 Cr	₹3 Cr	₹3 Cr	-2.1%
PAT (Net Profit)	₹17 Cr	₹2 Cr	₹2 Cr	₹2 Cr	-50.6%
EPS	₹13.41	₹1.8	₹1.84	₹1.62	-50.6%
ROE	21.4%	2.8%	2.8%	2.4%	—
ROCE	23.8%	4.0%	3.8%	3.2%	—
Free Cash Flow	₹16 Cr	₹9 Cr	-₹5 Cr	-₹4 Cr	—

🔴 EBITDA has shrunk at 2.1% a year over 3 years.

🔴 PAT (Net Profit) has shrunk at 50.6% a year over 3 years.

🔴 EPS has shrunk at 50.6% a year over 3 years.

🔴 ROE has fallen from 21.4% to 2.4% over 3 years (-19.0 pts).

🔴 ROCE has fallen from 23.8% to 3.2% over 3 years (-20.6 pts).

🔴 Free Cash Flow has turned negative, from ₹16 Cr to -₹4 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹85 Cr

Total Liabilities

₹0 Cr

Total Debt

—

Cash & Equivalents

₹1 Cr

Operating Cash Flow

-₹4 Cr

Capex

-₹0 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

79.1%

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

2 mixed4 general

Ashirwad Steels & Industries Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 06 Sept

Ashirwad Steels reports higher income, investments rise in FY26

scanx.trade, 23 Jul

Ashirwad Steels & Industries Ltd. Share Price Live Today

CNBC TV18, 03 Jan

Titan Company reports 63% jump in Q1 PAT

Business Standard, 07 AugResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Q1 results 2026: Bharti Airtel to LIC among companies to declare Q1 results next week; check full list here

Livemint, 02 AugResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

ASHIRWAD STEELS & INDUSTRIES L Share Price - Live ASHSI Stock Price & Chart

Upstox, 01 Apr

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.
1 metric couldn't be retrieved for this stock — this is more common for smaller or thinly-covered listings.

DalalBaazaar Thesis

StrongFinancial Health · Valuation

MiddlingBusiness Quality · Profitability

WeakGrowth · 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.

2 of 3 tripwires tripped — Free cash flow remains positive; ROCE stays above 8% · see Key things to watch ↑