Assam Entrade Limited

Financial Services — Capital Markets · NSE

₹819.00+₹39.00 (+5.00%)

DalalBaazaar Score

56 / 100

🟡 Moderate

Verdict

CAUTION

Risk

High

Driven by negative free cash flow, micro-cap size, which brings thin liquidity, a very high earnings multiple, which leaves little margin for disappointment.

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. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 8:27 pm

Understanding the Business

Company site ↗

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

What does this company do?

Assam Entrade Limited operates as a non-banking financial company in India. The company trades in shares and securities, mutual fund units, debentures, and bonds; offers loans and advances; and develops integrated residential townships.

IndustryCapital Markets

SectorFinancial Services

Employees5

Annual revenue₹7 Cr

How does it make money?

Turns over ₹7 Cr a year. Of every ₹100 of sales, about ₹27 reaches shareholders as profit, with ₹-17 left at the operating level before interest, tax and depreciation. Each of its 5 employees supports ₹1.48 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹1.48 Cr

Who are its competitors?

The closest listed comparisons in its industry are BAJAJ FINANCE LIMITED, HDFC LIFE INS CO LTD, SBI LIFE INSURANCE CO LTD. 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?Not assessable from these ratios

For a lender, returns on capital are shaped by leverage and funding cost rather than by pricing power, so the usual financial signature of an advantage does not apply. Judge this one on deposit franchise, cost of funds and asset quality — none of which are in this data.

Peer median ROE13.7%

What has been driving growth?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved +17% while net margin moved +14% 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+17%

Margin effect+14%

DalalBaazaar Score

56/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ P/E of 62.5x is demanding — it needs sustained high growth to justify

Quality vs. Valuation

Company Quality

61/ 100

Average

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

Valuation

41/ 100

Expensive

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

62.5x

Sector Median

58.4x

median of 3 sector peers

🟡Against its sector it is priced broadly in line with the peer median of 58.4x.

vs. its own history

Not enough price and earnings history

vs. sector peers

Fair

58.4x median of 3 peers · +7%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

—

PEG

6.33

What's Good / What's Bad

🟢 What's Going Well2

Return on capital is rising
ROCE has improved from 1.8% to 4.5%.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention1

Inventory building faster than sales
Inventory is up 89% against revenue growth of 17% — stock may not be moving.

Red Flags

1 item require attention · 1 high

🔴Significant margin compressionFinancial
EBITDA margin has fallen 38.7 points, from 21.3% to -17.4%.

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?

Margins are being competed away
EBITDA margin has fallen from 21.3% to -17.4%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Growth barely outpaces inflation
Revenue compounding at 5.3% a year is close to the rate prices rise, so the business is gaining little ground in real terms. That leaves the share price dependent on a re-rating rather than on earnings growth.
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

1EBITDA margin holds above -19%✓ -17.4%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Return on equity stays above 8%✗ 2.9%
For a lender this is the cleanest single read on whether the book is being grown profitably.
3Revenue growth stays above 4% a year✓ 5.3% CAGR
Latest reported year was 100.6%. The bar is set below the established compounding rate, so ordinary variation does not trip it.

Investment Checklist

4 / 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
✗ 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

Price history

Quick Metrics

2 good · 3 neutral · 6 weak

Market Cap

₹118 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

62.5x

Expensive

Expensive — verify against sector peers

P/B Ratio

1.75x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹13.1

Profitable

Profitable on a per-share basis

ROE

2.9%

Weak

Weak capital efficiency

ROCE

4.5%

Weak

Low return on total capital employed

Debt/Equity

2.86x

High

High leverage

Revenue Growth (YoY)

100.6%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-18.2%

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

-₹2 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

16.1%

Good

Healthy core-business profitability

Net Margin

13.0%

Good

Strong bottom-line conversion

Current Ratio

849.26

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.65

Defensive

Steadier than the market

52W Range Position

75%

Mid-range

Technical Snapshot

RSI (14)

57.5

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹6 Cr	₹7 Cr	₹8 Cr	₹7 Cr	+5.3%
EBITDA	₹1 Cr	₹3 Cr	₹0 Cr	-₹1 Cr	—
EBITDA Margin	21.3%	36.8%	1.3%	-17.4%	—
PAT (Net Profit)	₹1 Cr	₹1 Cr	₹3 Cr	₹2 Cr	+9.9%
EPS	₹10.34	₹9.29	₹21.01	₹13.71	+9.9%
ROE	2.6%	2.1%	4.6%	2.9%	—
ROCE	1.8%	4.0%	6.0%	4.5%	—
Total Debt	₹2 Cr	₹0 Cr	₹0 Cr	₹2 Cr	+2.8%
Free Cash Flow	-₹5 Cr	₹2 Cr	-₹0 Cr	-₹2 Cr	—

🟢 Revenue has grown at 5.3% a year over 3 years.

🔴 EBITDA has turned negative, from ₹1 Cr to -₹1 Cr.

🔴 EBITDA Margin has fallen from 21.3% to -17.4% over 3 years (-38.7 pts).

🟢 PAT (Net Profit) has grown at 9.9% a year over 3 years.

🟢 EPS has grown at 9.9% a year over 3 years.

🟡 ROE has held roughly flat at 2.9% over 3 years.

🟢 ROCE has risen from 1.8% to 4.5% over 3 years (+2.7 pts).

🔴 Total Debt has grown at 2.8% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹73 Cr

Total Liabilities

₹3 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

-₹2 Cr

Capex

—

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

100.1%

Peer Comparison

Company	P/E	ROE
BAJAJ FINANCE LIMITED	30.2x	17.8%
HDFC LIFE INS CO LTD	58.4x	11.3%
SBI LIFE INSURANCE CO LTD	63.9x	13.7%

Recent News

6 general

Assam Entrade Ltd Locks at Lower Circuit With 4.7% Loss — Sellers Queue, No Buyers in Sight

MarketsMojo, 15 Oct

ASSAMENT Stock Price and Chart — NSE:ASSAMENT

TradingView, 18 Aug

Assam Entrade Ltd. Peer Comparison – Compare with Others

Value Research, 04 Sept

Assam Entrade shareholders pass all AGM resolutions with near-unanimous vote

scanx.trade, 25 Sept

Compare with

Equitymaster, 22 Sept

Assam Entrade Ltd. Key Financial Ratios – Valuation, Profitability & More

Value Research, 01 Sept

Watch Items

This is a financial-sector business: borrowing is its raw material, not leverage in the usual sense. Debt/Equity and ROCE here aren't comparable to a manufacturer's — read them alongside NIM, GNPA and capital adequacy from the company's own disclosures.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongFinancial Health

MiddlingBusiness Quality · Growth · Profitability

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

1 of 3 tripwires tripped — Return on equity stays above 8% · see Key things to watch ↑