Atvo Enterprises Limited

Consumer Cyclical — Apparel Manufacturing · BSE

₹35.79−₹0.34 (−0.94%)

DalalBaazaar Score

50 / 100

🟡 Moderate

Verdict

CAUTION

Risk

High

Driven by micro-cap size, which brings thin liquidity, a very high earnings multiple, which leaves little margin for disappointment, falling profits.

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. Valuation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:47 pm

Understanding the Business

Company site ↗

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

What does this company do?

Atvo Enterprises Limited engages in the manufacture, export, and sale of various textile fabrics in India. The company offers socks, shirts and sweaters, readymade garments, and hosiery goods. It also engages in commission and investment activities.

IndustryApparel Manufacturing

SectorConsumer Cyclical

Annual revenue₹6 Cr

How does it make money?

Turns over ₹6 Cr a year. Of every ₹100 of sales, about ₹4 reaches shareholders as profit, with ₹5 left at the operating level before interest, tax and depreciation.

Who are its competitors?

The closest listed comparisons in its industry are MARUTI SUZUKI INDIA LTD., TITAN COMPANY LIMITED, TRENT LTD, AVENUE SUPERMARTS 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 2.5% 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 ROE25.9%

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 +88% while net margin moved -12% 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+88%

Margin effect-12%

DalalBaazaar Score

50/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ P/E of 1789.5x is demanding — it needs sustained high growth to justify
✗ P/E is 29% above its own historical median of 1382.0x — expensive by its own standards
✗ P/B of 32.30x is a steep premium to book

Quality vs. Valuation

Company Quality

56/ 100

Average

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

Valuation

23/ 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

1789.5x

3Y Median

1382.0x

40 monthly readings · mean 1283.0x · range 205.0x–3344.0x

Sector Median

69.2x

median of 4 sector peers

⚠️Current valuation is approximately 29% above its 3y median of 1382.0x. Paying more than usual needs a reason — faster growth, a better balance sheet, or a re-rating you believe in.

⚠️Against its sector it trades 2486% above the peer median of 69.2x.

vs. its own history

Expensive

1382.0x median over 40 months · +29%

vs. sector peers

Expensive

69.2x median of 4 peers · +2486%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

1294.8x

PEG

98.44

What's Good / What's Bad

🟢 What's Going Well1

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

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

2 items require attention · 2 high

🔴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.
🔴Receivables growing faster than salesFinancial
Receivables up 990% against revenue up 88% — sales are being booked faster than they are collected.

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?

Sales are being booked faster than collected
Receivables are up 990% against revenue up 88%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
The price already assumes success
The stock trades 29% above its own median multiple. At this level the business has to deliver just to stand still, and a stumble is repriced twice — lower earnings on a lower multiple.
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 18% a year✓ 23.4% CAGR
Latest reported year was 13.1%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 3%✓ 4.9%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✓ ₹0 Cr
Profit that never becomes cash eventually stops being profit.
4ROCE stays above 8%✗ 2.5%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.
5Valuation vs its own median of 1382.0x✗ 1789.5x today
A re-rating above its own history needs a reason; without one it is just a higher price.

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
✓ 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

3 good · 3 neutral · 5 weak

Market Cap

₹383 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

1789.5x

Expensive

Expensive — verify against sector peers

P/B Ratio

32.30x

Rich

Steep premium to book — needs high, durable returns to justify

EPS (TTM)

₹0.02

Profitable

Profitable on a per-share basis

ROE

1.8%

Weak

Weak capital efficiency

ROCE

2.5%

Weak

Low return on total capital employed

Debt/Equity

Not available

No data

Source didn't return this field

Revenue Growth (YoY)

13.1%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-18.5%

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

₹0 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

-15.4%

Weak

Thin margins leave little room for error

Net Margin

3.4%

Average

Average bottom-line conversion

Current Ratio

5.23

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.85

Market-like

Moves roughly in line with the market

52W Range Position

70%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

38.3 / 39.1

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

24.7

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹3 Cr	₹4 Cr	₹4 Cr	₹6 Cr	+23.4%
EBITDA	₹0 Cr	₹0 Cr	₹0 Cr	₹0 Cr	+17.2%
EBITDA Margin	5.7%	5.2%	4.0%	4.9%	—
PAT (Net Profit)	₹0 Cr	₹0 Cr	₹0 Cr	₹0 Cr	+18.2%
EPS	₹0.01	₹0.01	₹0.01	₹0.02	+26.0%
ROE	1.2%	0.9%	1.0%	1.8%	—
ROCE	1.4%	1.5%	1.5%	2.5%	—
Total Debt	₹2 Cr	₹1 Cr	₹0 Cr	—	—
Free Cash Flow	₹2 Cr	-₹0 Cr	₹0 Cr	₹0 Cr	-86.0%

🟢 Revenue has grown at 23.4% a year over 3 years.

🟢 EBITDA has grown at 17.2% a year over 3 years.

🟡 EBITDA Margin has held roughly flat at 4.9% over 3 years.

🟢 PAT (Net Profit) has grown at 18.2% a year over 3 years.

🟢 EPS has grown at 26.0% a year over 3 years.

🟡 ROE has held roughly flat at 1.8% over 3 years.

🟢 ROCE has risen from 1.4% to 2.5% over 3 years (+1.1 pts).

🔴 Free Cash Flow has shrunk at 86.0% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹15 Cr

Total Liabilities

₹3 Cr

Cash & Equivalents

₹1 Cr

Operating Cash Flow

₹0 Cr

Capex

—

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

70.6%

Peer Comparison

Company	P/E	ROE
MARUTI SUZUKI INDIA LTD.	25.2x	13.4%
TITAN COMPANY LIMITED	68.5x	36.7%
TRENT LTD	87.2x	25.9%
AVENUE SUPERMARTS LIMITED	69.9x	12.7%

Recent News

6 general

Compare WEIZMANN. with TRENDY KNIT.

Equitymaster, 15 Oct

Atvo Enterprises Limited Share Price - Live ATVOENT Stock Price & Chart

Upstox, 05 May

Naresh Gattani HUF acquires 1.69 lakh shares in ATVO Enterprises

scanx.trade, 02 Jul

Atvo Enterprises approves amalgamation of three group firms

scanx.trade, 26 Aug

Atvo Enterprises Ltd

Equitypandit, 17 Mar

ATVOENT Stock Price and Chart — BSE:ATVOENT

TradingView, 30 Jun

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.
RSI is in oversold territory — could mean either a bargain or a stock still falling for good reason. Check the 'why' before assuming reversal.

DalalBaazaar Thesis

StrongFinancial Health

MiddlingGrowth

WeakBusiness Quality · Profitability · Valuation · 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.

2 of 5 tripwires tripped — ROCE stays above 8%; Valuation vs its own median of 1382.0x · see Key things to watch ↑