Athena Constructions Limited

Industrials — Engineering & Construction · BSE

₹5.18₹0.00 (0.00%)

DalalBaazaar Score

40 / 100

🟡 Moderate

Verdict

CAUTION

Risk

High

Driven by negative free cash flow, the company is currently loss-making, micro-cap size, which brings thin liquidity.

In simple words: The company is currently losing money. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:51 pm

Understanding the Business

Company site ↗

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

What does this company do?

Athena Constructions Limited constructs and develops real estate and infrastructure projects in India. It also offers advisory services for construction, real estate, infrastructure, and other projects.

IndustryEngineering & Construction

SectorIndustrials

Who are its competitors?

The closest listed comparisons in its industry are LARSEN & TOUBRO LTD., ADANI PORT & SEZ LTD, SIEMENS 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?Little sign of one

Returns on capital of -4.0% 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 ROE14.1%

DalalBaazaar Score

40/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ ROCE of -4.0% is below 10% — capital is not working hard
✗ ROCE has fallen by 6.7 points — returns are eroding
✗ The business is lossmaking at the net level

Quality vs. Valuation

Company Quality

39/ 100

Weak

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

Valuation

36/ 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.

vs. its own history

Not enough price and earnings history

vs. sector peers

Not enough peers with a usable P/E

vs. generic bands

N/A

No P/E — the company is lossmaking

EV/EBITDA

—

PEG

—

What's Good / What's Bad

🟢 What's Going Well1

Debt is being paid down
Total debt is down 63% over 3 years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 0.3% to -11.5% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 2.7% to -4.0% — often a sign of competition or overexpansion.

Red Flags

5 items require attention · 3 high · 2 watch

🔴Thin interest coverageFinancial
Operating profit covers interest only -1.2x — little room if earnings dip.
🔴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.
🔴The company is lossmakingFinancial
Net profit of -₹1 Cr in the latest reported year.
🟡Interest coverage is deterioratingFinancial
Cover has fallen from -1.0x to -1.2x.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹1 Cr in the latest year.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Deleveraging frees up earnings
Debt is down 63% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.

🔴 Bear CaseWhat could go wrong?

Returns on shareholder capital are falling
ROE has dropped from 0.3% to -11.5%. 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.
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
3 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

1Free cash flow remains positive✗ -₹1 Cr
Profit that never becomes cash eventually stops being profit.
2Interest cover stays above 3x✗ -1.2x
How much operating profit can fall before interest stops being comfortably covered.
3ROCE stays above 8%✗ -4.0%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

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
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ 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

2 good · 4 neutral · 5 weak

Market Cap

₹4 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

Not meaningful

Loss-making

Earnings are negative, so a P/E multiple can't be read here

P/B Ratio

0.66x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹-0.9

Loss-making

Negative earnings per share — the business is losing money

ROE

-10.9%

Weak

Weak capital efficiency

ROCE

-4.0%

Weak

Low return on total capital employed

Debt/Equity

0.55x

Low

Conservative leverage

Revenue Growth (YoY)

Not available

No data

Source didn't return this field

Profit Growth (YoY)

9.3%

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

-₹1 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

ROA

-1.2%

Weak

Assets generate little profit

Operating Margin

0.0%

Weak

Thin margins leave little room for error

Net Margin

0.0%

Weak

Very little revenue reaches the bottom line

Current Ratio

1.58

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.44

Defensive

Steadier than the market

52W Range Position

49%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

4.4 / 4.1

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

62.1

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹1 Cr	₹1 Cr	—	—	—
EBITDA	₹0 Cr	₹0 Cr	-₹0 Cr	-₹0 Cr	—
EBITDA Margin	81.9%	38.1%	—	—	—
PAT (Net Profit)	₹0 Cr	-₹0 Cr	-₹1 Cr	-₹1 Cr	—
EPS	₹0.03	₹-0.22	₹-0.99	—	—
ROE	0.3%	-2.3%	-11.4%	-11.5%	—
ROCE	2.7%	2.7%	-3.8%	-4.0%	—
Total Debt	₹9 Cr	₹3 Cr	₹3 Cr	₹3 Cr	-28.5%
Free Cash Flow	₹4 Cr	-₹3 Cr	₹0 Cr	-₹1 Cr	—

🔴 EBITDA has turned negative, from ₹0 Cr to -₹0 Cr.

🔴 PAT (Net Profit) has turned negative, from ₹0 Cr to -₹1 Cr.

🔴 ROE has fallen from 0.3% to -11.5% over 3 years (-11.8 pts).

🔴 ROCE has fallen from 2.7% to -4.0% over 3 years (-6.7 pts).

🟢 Total Debt has shrunk at 28.5% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹4 Cr to -₹1 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹17 Cr

Total Liabilities

₹11 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

-₹1 Cr

Capex

—

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

40.6%

Peer Comparison

Company	P/E	ROE
LARSEN & TOUBRO LTD.	30.1x	15.2%
ADANI PORT & SEZ LTD	29.9x	14.1%
SIEMENS LTD	88.8x	10.5%

Recent News

6 general

Athena Constructions sets Oct 23-29 book closure for AGM

scanx.trade, 06 Oct

Athena Constructions Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 31 Aug

Athena Constructions Ltd. Key Financial Ratios – Valuation, Profitability & More

Value Research, 27 Aug

Athena Constructions Ltd. Peer Comparison – Compare with Others

Value Research, 30 Aug

Inox Clean Energy set to buy Actis-owned Athena Renewables for Rs 2,500 crore

The Economic Times, 21 Sept

Vedanta shares in focus after boiler explosion at Chhattisgarh power plant: What we know so far

Upstox, 14 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

MiddlingFinancial Health · Growth · Valuation

WeakBusiness Quality · Profitability · 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. 3 high-severity red flags sit above this conclusion and should be read first.

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