Audroc Limited

Consumer Cyclical — Textile Manufacturing · BSE

₹27.55+₹0.54 (+2.00%)

DalalBaazaar Score

50 / 100

🟡 Moderate

Verdict

CAUTION

Risk

High

Driven by moderate debt load, 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. Valuation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:46 pm

Understanding the Business

Company site ↗

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

What does this company do?

Audroc Limited engages in processing and trading of food grains in India. It provides non-basmati rice, wheat, and pulses. The company was formerly known as Alka India Limited and changed its name to Audroc Limited in April 2026.

IndustryTextile Manufacturing

SectorConsumer Cyclical

Employees3

Annual revenue₹3 Cr

How does it make money?

Turns over ₹3 Cr a year. Of every ₹100 of sales, about ₹7 reaches shareholders as profit, with ₹7 left at the operating level before interest, tax and depreciation. Each of its 3 employees supports ₹83.4 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹83.4 lakh

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 4.2% 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%

DalalBaazaar Score

50/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ P/E of 114.8x is demanding — it needs sustained high growth to justify
✗ P/B of 48.76x is a steep premium to book

Quality vs. Valuation

Company Quality

57/ 100

Average

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

Valuation

24/ 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

114.8x

Sector Median

69.2x

median of 4 sector peers

⚠️Against its sector it trades 66% above the peer median of 69.2x.

vs. its own history

Not enough price and earnings history

vs. sector peers

Expensive

69.2x median of 4 peers · +66%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

131.6x

PEG

—

What's Good / What's Bad

🟢 What's Going Well3

Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.
Return on equity is rising
ROE has improved from -14.3% to 9.2%.
Return on capital is rising
ROCE has improved from -12.5% to 4.2%.

🔴 What Needs Attention0

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

Red Flags

3 items require attention · 1 high · 2 watch

🔴Debt has risen sharplyFinancial
Total debt is up 96% over 3 years, from ₹3 Cr to ₹5 Cr.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 1567% over 3 years — each existing share owns a smaller slice of the company.
🟡Low reported insider holdingOwnership
Reported insider holding is 2.8%. For Indian companies this field is an unreliable proxy — check the official promoter shareholding in the exchange filing.

Investment Thesis

🟢 Bull CaseWhat could make this work?

No clear supporting case emerges from the available numbers.

🔴 Bear CaseWhat could go wrong?

The debt load needs earnings to hold up
Debt is 30.6x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
A premium to the sector to defend
It trades 66% 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.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1EBITDA margin holds above 5%✓ 7.1%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA falls below 3x✗ 30.6x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
3Free cash flow remains positive✓ ₹49 Cr
Profit that never becomes cash eventually stops being profit.
4ROCE stays above 8%✗ 4.2%
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

3 good · 5 neutral · 3 weak

Market Cap

₹18 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

114.8x

Expensive

Expensive — verify against sector peers

P/B Ratio

48.76x

Rich

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

EPS (TTM)

₹0.24

Profitable

Profitable on a per-share basis

ROE

9.2%

Moderate

Moderate capital efficiency

ROCE

4.2%

Weak

Low return on total capital employed

Debt/Equity

1.27x

Moderate

Moderate leverage

Revenue Growth (YoY)

Not available

No data

Source didn't return this field

Profit Growth (YoY)

141.3%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.04%

Modest

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

Free Cash Flow

₹49 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

4.5%

Weak

Thin margins leave little room for error

Net Margin

18.4%

Good

Strong bottom-line conversion

Current Ratio

1.29

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

-0.15

Defensive

Steadier than the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

23.0 / 17.1

Bullish alignment (short > long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

100.0

Overbought zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
EBITDA	₹0 Cr	-₹1 Cr	-₹1 Cr	₹0 Cr	+860.1%
PAT (Net Profit)	-₹2 Cr	-₹0 Cr	-₹0 Cr	₹0 Cr	—
EPS	₹-9.52	₹-0.91	₹-0	₹0.05	—
ROE	-14.3%	-1.5%	-0.9%	9.2%	—
ROCE	-12.5%	-3.3%	-1.0%	4.2%	—
Total Debt	₹3 Cr	₹3 Cr	₹5 Cr	₹5 Cr	+25.2%
Free Cash Flow	-₹2 Cr	₹1 Cr	-₹37 Cr	₹49 Cr	—

🟢 EBITDA has grown at 860.1% a year over 3 years.

🟢 PAT (Net Profit) has turned positive, from -₹2 Cr to ₹0 Cr.

🟢 EPS has turned positive, from ₹-9.52 to ₹0.05.

🟢 ROE has risen from -14.3% to 9.2% over 3 years (+23.5 pts).

🟢 ROCE has risen from -12.5% to 4.2% over 3 years (+16.7 pts).

🔴 Total Debt has grown at 25.2% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹2 Cr to ₹49 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹19 Cr

Total Liabilities

₹15 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

₹49 Cr

Capex

—

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

2.8%

Corporate Actions

Dividend Rate

₹0.01

Ex-Dividend Date

27 Apr 2026

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

1 mixed5 general

Audroc (BSE:530889) - Stock Analysis

Simply Wall Street, 13 May

AUDROC Stock Price and Chart — BSE:AUDROC

TradingView, 08 Jun

Audroc Ltd Completes 6:1 Bonus Share Allotment; Stock Adjusts Lower

HDFC Sky, 11 MayPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

AUDROC Limited Allots 15,00,000 Bonus Equity Shares in 6:1 Ratio; Files BSE Clarification

scanx.trade, 12 May

AUDROC Limited allots 3.75 crore warrants to Patel Vinodbhai Ramabhai

scanx.trade, 12 Aug

Audroc allots 2.5 crore warrants to promoter at ₹4 each

scanx.trade, 14 Aug

Watch Items

Trading very close to its 52-week low — worth checking whether this reflects a temporary setback or a structural problem.
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.
Reported insider holding is low — cross-check the official promoter shareholding % in the company's exchange filing.
RSI is in overbought territory — momentum entries here carry more short-term pullback risk.

DalalBaazaar Thesis

StrongProfitability

MiddlingBusiness Quality · Financial Health · Growth

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.

2 of 4 tripwires tripped — Debt / EBITDA falls below 3x; ROCE stays above 8% · see Key things to watch ↑