Asian Energy Services Limited

Energy — Oil & Gas Equipment & Services · NSE

₹455.10+₹0.30 (+0.07%)

DalalBaazaar Score

64 / 100

🟢 Good

Verdict

REASONABLE

Risk

High

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

In simple words: Reasonable but unspectacular business quality, with both sales and profits growing well. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:08 pm

Mixed / neutral. No major red flags jump out, but nothing here screams "obviously cheap" either. This is a name that needs a peer comparison and a view on near-term earnings triggers before sizing a position.

Understanding the Business

Company site ↗

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

What does this company do?

Asian Energy Services Limited provides services to the energy, mineral, coal, and power sectors primarily in India and internationally. The company operates through Oil and Gas, and Mineral and Other Energy Sectors segments.

IndustryOil & Gas Equipment & Services

SectorEnergy

Employees434

Annual revenue₹788 Cr

How does it make money?

Turns over ₹788 Cr a year. Of every ₹100 of sales, about ₹6 reaches shareholders as profit, with ₹13 left at the operating level before interest, tax and depreciation. Each of its 434 employees supports ₹1.82 Cr of revenue a year, the signature of a capital- or asset-led business.

EBITDA margin12.7%

Net margin6.5%

Revenue / employee₹1.82 Cr

Who are its competitors?

The closest listed comparisons in its industry are RELIANCE INDUSTRIES LTD, OIL AND NATURAL GAS CORP., BHARAT PETROLEUM CORP LT, INDIAN OIL CORP LTD. These are the companies its valuation and returns are measured against elsewhere in this report.

RELIANCE INDUSTRIES LTDP/E 21.9x · ROE 8.3%

OIL AND NATURAL GAS CORP.P/E 6.4x · ROE 11.7%

BHARAT PETROLEUM CORP LTP/E 7.3x · ROE 17.1%

INDIAN OIL CORP LTDP/E 5.3x · ROE 15.4%

What is its competitive advantage?Little sign of one

Returns on capital of 13.3% 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.

ROCE13.3%

ROE10.4%

Peer median ROE15.4%

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 +623% while net margin moved -116% 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+623%

Margin effect-116%

DalalBaazaar Score

64/ 100

Good

Weighted across six categories. Every point is explained below.

• Beta of 0.89 — moves roughly with the market
✗ 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

70/ 100

Good

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

Valuation

40/ 100

Expensive

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

A good business, but the price already reflects that. The quality is real; the question is whether you are overpaying for it today.

Historical Valuation

Current P/E

36.1x

2Y Median

40.8x

28 monthly readings · mean 41.3x · range 24.4x–63.1x

Sector Median

6.9x

median of 4 sector peers

🟢Current valuation is approximately 12% below its 2y median of 40.8x. 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 trades 425% above the peer median of 6.9x.

vs. its own history

Fair

40.8x median over 28 months · -12%

vs. sector peers

Expensive

6.9x median of 4 peers · +425%

vs. generic bands

Expensive

Above 35x

P/E (Trailing)

36.1x

P/B

4.12x

EV/EBITDA

22.6x

PEG

—

Dividend Yield

0.27%

What's Good / What's Bad

🟢 What's Going Well3

Margins are improving
EBITDA margin is up from -15.3% to 12.7% over 3 years.
Return on equity is rising
ROE has improved from -22.2% to 10.4%.
Return on capital is rising
ROCE has improved from -21.4% to 13.3%.

🔴 What Needs Attention2

Debt is rising
Total debt is up 650% over 3 years — worth checking what it funded.
Free cash flow is negative
The business is not currently covering its capital spending from operations.

Red Flags

2 items require attention · 2 high

🔴Debt has risen sharplyFinancial
Total debt is up 650% over 3 years, from ₹21 Cr to ₹159 Cr.
🔴Free cash flow negative for 4 yearsFinancial
The business has not covered its capital spending from operations for several years running, which has to be funded externally.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from -15.3% to 12.7%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.

🔴 Bear CaseWhat could go wrong?

A premium to the sector to defend
It trades 425% above the peer median. That premium needs a reason that persists, or it closes.
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.
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

1Revenue growth stays above 70% a year✓ 93.4% CAGR
Latest reported year was 135.1%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 11%✓ 12.7%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹8 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 1.6x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 10%✓ 13.3%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

7 / 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 · 6 neutral · 1 weak

Market Cap

₹2,211 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

36.1x

Fair

Fairly valued against the generic band

P/B Ratio

4.12x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹12.62

Profitable

Profitable on a per-share basis

ROE

10.4%

Moderate

Moderate capital efficiency

ROCE

13.3%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.32x

Low

Conservative leverage

Revenue Growth (YoY)

135.1%

Healthy

Healthy top-line growth

Profit Growth (YoY)

102.4%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.27%

Modest

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

Free Cash Flow

-₹8 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

CMP

₹455.1

Operating Margin

6.2%

Average

Average margins

Net Margin

6.1%

Average

Average bottom-line conversion

Current Ratio

2.11

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.89

Market-like

Moves roughly in line with the market

52W Range Position

67%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

471.9 / 471.3

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

40.0

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹109 Cr	₹305 Cr	₹464 Cr	₹788 Cr	+93.4%
EBITDA	-₹17 Cr	₹50 Cr	₹74 Cr	₹100 Cr	—
EBITDA Margin	-15.3%	16.3%	15.9%	12.7%	—
PAT (Net Profit)	-₹44 Cr	₹25 Cr	₹42 Cr	₹51 Cr	—
EPS	₹-11.77	₹6.48	₹9.77	₹11.34	—
ROE	-22.2%	9.2%	10.6%	10.4%	—
ROCE	-21.4%	10.9%	14.0%	13.3%	—
Total Debt	₹21 Cr	₹22 Cr	₹24 Cr	₹159 Cr	+95.8%
Free Cash Flow	-₹4 Cr	-₹73 Cr	-₹52 Cr	-₹8 Cr	—

🟢 Revenue has grown at 93.4% a year over 3 years.

🟢 EBITDA has turned positive, from -₹17 Cr to ₹100 Cr.

🟢 EBITDA Margin has risen from -15.3% to 12.7% over 3 years (+28.0 pts).

🟢 PAT (Net Profit) has turned positive, from -₹44 Cr to ₹51 Cr.

🟢 EPS has turned positive, from ₹-11.77 to ₹11.34.

🟢 ROE has risen from -22.2% to 10.4% over 3 years (+32.6 pts).

🟢 ROCE has risen from -21.4% to 13.3% over 3 years (+34.7 pts).

🔴 Total Debt has grown at 95.8% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹918 Cr

Total Liabilities

₹423 Cr

Total Debt

₹159 Cr

Cash & Equivalents

₹109 Cr

Operating Cash Flow

₹53 Cr

Capex

-₹61 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

67.4%

Corporate Actions

Dividend Rate

₹1.25

Ex-Dividend Date

17 Sept 2026

Peer Comparison

Company	P/E	ROE
RELIANCE INDUSTRIES LTD	21.9x	8.3%
OIL AND NATURAL GAS CORP.	6.4x	11.7%
BHARAT PETROLEUM CORP LT	7.3x	17.1%
INDIAN OIL CORP LTD	5.3x	15.4%

Recent News

1 positive1 mixed4 general

Asian Energy Services gets NCLT sanction for Oilmax merger

scanx.trade, 15 OctM&A

🟡Mixed / dependsAcquisitions change the balance sheet before they change the earnings. Look at what was paid, how it was funded, and whether debt rose.

Asian Energy Services: Best Stock in Its Sector? Key Metrics

Univest, 23 Sept

Asian Energy Services Ltd Sees Bullish Momentum Shift Amid Technical Upgrades

MarketsMojo, 15 OctAnalyst view

🟢Potentially positiveAn analyst opinion changing, which moves the price without changing the business.

Concerns Surrounding Asian Energy Services' (NSE:ASIANENE) Performance

Simply Wall Street, 27 May

Asian Energy - 3 ace investors bought, added stake in these 8 stocks. How many are in your portfolio?

The Economic Times, 30 Jul

Asian Energy Services Ltd. Financials – Balance Sheet, Profit & Loss, Cash Flow

Value Research, 29 Aug

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

🟡Business QualityAdequate11.7/20

🟢Financial HealthStrong13/20

🟢GrowthStrong18.4/20

🟡ProfitabilityModerate9.6/15

🟡ValuationFair8.1/15

🔴RiskHigh3.5/10

Good business, demanding price

The quality is real and the price already reflects it. Buying here is a bet that the business keeps compounding for long enough to grow into the multiple — which good businesses often do, but it removes the margin for error that a lower price would have given you. 2 high-severity red flags sit above this conclusion and should be read first.

This thesis breaks if

✓Revenue growth stays above 70% a year93.4% CAGR
✓EBITDA margin holds above 11%12.7%
✗Free cash flow remains positive-₹8 Cr
✓Debt / EBITDA stays below 2x1.6x
✓ROCE stays above 10%13.3%