Asian Petro Products and Exports Limited

Basic Materials — Specialty Chemicals · BSE

₹9.75+₹0.15 (+1.56%)

DalalBaazaar Score

57 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

Moderate

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, 7:45 pm

Understanding the Business

Company site ↗

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

What does this company do?

Asian Petro Products and Exports Limited engages in the manufacture and sale of chemicals based on ethylene oxide in India. It offers monoethanolamine, diethanolamine, triethanalomine, ethoxylates of various moles, lauryl alcohol ethoxylates, and steric acid ethoxylates.

IndustrySpecialty Chemicals

SectorBasic Materials

Employees7

Annual revenue₹68 Cr

How does it make money?

Turns over ₹68 Cr a year. Of every ₹100 of sales, about ₹2 reaches shareholders as profit, with ₹2 left at the operating level before interest, tax and depreciation. Each of its 7 employees supports ₹9.64 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹9.64 Cr

Who are its competitors?

The closest listed comparisons in its industry are ASIAN PAINTS LIMITED, PIDILITE INDUSTRIES LTD, SRF LTD, UPL 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?Little sign of one

Returns on capital of 12.0% 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 ROE22.3%

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 +305% while net margin moved +172% 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+305%

Margin effect+172%

DalalBaazaar Score

57/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ ROE of 9.3% is weak

Quality vs. Valuation

Company Quality

58/ 100

Average

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

Valuation

77/ 100

Cheap

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.

Historical Valuation

Current P/E

25.0x

3Y Median

1532.7x

40 monthly readings · mean 1895.5x · range 18.7x–4036.8x

Sector Median

40.4x

median of 4 sector peers

🟢Current valuation is approximately 98% below its 3y median of 1532.7x. 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 38% below the peer median of 40.4x.

vs. its own history

Cheap

1532.7x median over 40 months · -98%

vs. sector peers

Cheap

40.4x median of 4 peers · -38%

vs. generic bands

Fair

15x–35x

EV/EBITDA

12.0x

PEG

0.20

What's Good / What's Bad

🟢 What's Going Well2

Debt is being paid down
Total debt is down 40% over 3 years.
Very low debt
Debt/Equity of 0.11x leaves the balance sheet with plenty of headroom.

🔴 What Needs Attention1

Return on capital is falling
ROCE has declined from 30.8% to 12.0% — often a sign of competition or overexpansion.

Red Flags

3 items require attention · 2 high · 1 watch

🔴Free cash flow negative for 3 yearsFinancial
The business has not covered its capital spending from operations for several years running, which has to be funded externally.
🔴Receivables growing faster than salesFinancial
Receivables up 543% against revenue up 305% — sales are being booked faster than they are collected.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 96% over 3 years — each existing share owns a smaller slice of the company.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Deleveraging frees up earnings
Debt is down 40% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
Priced below its own history
The stock trades 98% 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.
Cheaper than its peers
It trades 38% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.

🔴 Bear CaseWhat could go wrong?

Sales are being booked faster than collected
Receivables are up 543% against revenue up 305%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
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 45% a year✓ 59.4% CAGR
Latest reported year was 700.3%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 0%✓ 2.3%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹1 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.9x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 9%✓ 12.0%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

6 / 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

₹24 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

25.0x

Fair

Fairly valued against the generic band

P/B Ratio

1.86x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹0.39

Profitable

Profitable on a per-share basis

ROE

9.3%

Moderate

Moderate capital efficiency

ROCE

12.0%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.11x

Low

Conservative leverage

Revenue Growth (YoY)

700.3%

Healthy

Healthy top-line growth

Profit Growth (YoY)

202.8%

Healthy

Profits growing at a healthy clip

Dividend Yield

None

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

Free Cash Flow

-₹1 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

0.0%

Weak

Thin margins leave little room for error

Net Margin

1.0%

Weak

Very little revenue reaches the bottom line

Current Ratio

1.37

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.64

Defensive

Steadier than the market

52W Range Position

40%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

9.5 / 9.7

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

58.0

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹17 Cr	—	₹42 Cr	₹68 Cr	+59.4%
EBITDA	₹0 Cr	-₹1 Cr	-₹1 Cr	₹2 Cr	+106.3%
EBITDA Margin	1.1%	—	-2.7%	2.3%	—
PAT (Net Profit)	₹0 Cr	-₹1 Cr	-₹1 Cr	₹1 Cr	+122.5%
EPS	₹0.01	₹-0.74	₹-0.48	₹0.49	+330.4%
ROE	—	—	-10.0%	9.3%	—
ROCE	30.8%	-136.0%	-9.5%	12.0%	—
Total Debt	₹2 Cr	₹4 Cr	₹1 Cr	₹1 Cr	-15.6%
Free Cash Flow	₹1 Cr	-₹1 Cr	-₹5 Cr	-₹1 Cr	—

🟢 Revenue has grown at 59.4% a year over 3 years.

🟢 EBITDA has grown at 106.3% a year over 3 years.

🟢 EBITDA Margin has risen from 1.1% to 2.3% over 3 years (+1.2 pts).

🟢 PAT (Net Profit) has grown at 122.5% a year over 3 years.

🟢 EPS has grown at 330.4% a year over 3 years.

🟢 ROE has risen from -10.0% to 9.3% over 3 years (+19.3 pts).

🔴 ROCE has fallen from 30.8% to 12.0% over 3 years (-18.8 pts).

🟢 Total Debt has shrunk at 15.6% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹1 Cr to -₹1 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹42 Cr

Total Liabilities

₹29 Cr

Cash & Equivalents

₹7 Cr

Operating Cash Flow

-₹1 Cr

Capex

-₹0 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

65.7%

Peer Comparison

Company	P/E	ROE
ASIAN PAINTS LIMITED	46.9x	22.3%
PIDILITE INDUSTRIES LTD	57.8x	24.4%
SRF LTD	33.8x	15.4%
UPL LIMITED	21.5x	6.1%

Recent News

6 general

Asian Petroproducts board approves preferential issue of shares and warrants

scanx.trade, 15 Oct

Asian Petroproducts & Exports Ltd. Financials – Balance Sheet, Profit & Loss, Cash Flow

Value Research, 01 Sept

Asian Petroproducts & Exports Ltd. Share Price Live Today

CNBC TV18, 03 Jan

Asian Petroproducts clarifies delay in submitting 34th AGM proceedings

scanx.trade, 28 Sept

China Lifts Fuel Export Curbs, Set to Boost Global Oil Product Supply

ChemAnalyst, 30 Jun

West Asia conflict inflates India’s net oil, gas import bill by 43% in April-July

The Indian Express, 21 Aug

Watch Items

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

DalalBaazaar Thesis

StrongGrowth

MiddlingFinancial Health · Valuation

WeakBusiness Quality · Profitability · 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 — Free cash flow remains positive · see Key things to watch ↑