AUGMONT ENTERPRISES LTD

Consumer Cyclical — Luxury Goods · NSE

₹1,330.30+₹31.90 (+2.46%)

DalalBaazaar Score

55 / 100

🟡 Moderate

Verdict

CAUTION

Risk

Very High

Driven by high debt relative to equity, negative free cash flow, the company is currently loss-making.

In simple words: The company is currently losing money, though profits are falling even as sales grow. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:00 pm

Understanding the Business

Company site ↗

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

What does this company do?

Augmont Enterprises Limited operates as an integrated gold and silver platform in India. It engages in procurement and refining, bullion trading, digital gold offerings, jewellery manufacturing, international sales and facilitating gold-backed financial services.

IndustryLuxury Goods

SectorConsumer Cyclical

Employees296

Annual revenue₹94,186 Cr

How does it make money?

Turns over ₹94,186 Cr a year. Of every ₹100 of sales, about ₹0 reaches shareholders as profit, with ₹0 left at the operating level before interest, tax and depreciation. Each of its 296 employees supports ₹318.20 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹318.20 Cr

Who are its competitors?

The closest listed comparisons in its industry are TITAN COMPANY LIMITED, TRENT LTD, AVENUE SUPERMARTS LIMITED, ASIAN PAINTS 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?The numbers suggest a real one

ROCE has stayed above 15% in every year available and stands at 50.5%. Returns that high normally get competed away; when they persist, something is protecting them, and its ROE of 38.4% against a peer median of 25.9% is consistent with that. What that something is — brand, scale, switching costs, regulation — the accounts cannot tell you.

Peer median ROE25.9%

What has been driving growth?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved +201% while net margin moved +165% 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+201%

Margin effect+165%

DalalBaazaar Score

55/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ No meaningful P/E — the company is lossmaking
✗ P/B of 12.25x is a steep premium to book

Quality vs. Valuation

Company Quality

66/ 100

Good

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

Valuation

20/ 100

Expensive

What you are being asked to pay, ignoring how good the business is.

A good business, but the price already reflects that. The quality is real; the question is whether you are overpaying for it today.

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

28.3x

PEG

—

What's Good / What's Bad

🟢 What's Going Well5

Debt is being paid down
Total debt is down 70% over 3 years.
Return on equity is rising
ROE has improved from 23.6% to 38.4%.
Return on capital is rising
ROCE has improved from 39.6% to 50.5%.
High return on capital employed
ROCE of 50.5% is the mark of a business that converts capital into profit efficiently.
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

5 items require attention · 3 high · 2 watch

🔴High leverageFinancial
Debt/Equity of 1.94x — earnings must service borrowings before shareholders see anything.
🔴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.
🔴Inventory building faster than salesFinancial
Inventory up 490% against revenue up 201% — stock may not be moving.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹43 Cr in the latest year.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 915% over 3 years — each existing share owns a smaller slice of the company.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 50.5% means each rupee reinvested earns well above what capital costs. If the company can keep deploying at this rate, growth creates value rather than just consuming cash.
Deleveraging frees up earnings
Debt is down 70% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
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?

Leverage amplifies any setback
Debt/Equity of 1.94x. Interest is payable whether or not the business has a good year.
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
Small 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

1Revenue growth stays above 33% a year✓ 44.4% CAGR
Latest reported year was 30.2%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above -2%✓ 0.5%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹43 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.0x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 48%✓ 50.5%
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)
✓ 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

3 good · 2 neutral · 6 weak

Market Cap

₹12,155 Cr

Small 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

12.25x

Rich

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

EPS (TTM)

₹-35.22

Loss-making

Negative earnings per share — the business is losing money

ROE

38.4%

Strong

Strong capital efficiency

ROCE

50.5%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

1.94x

High

High leverage

Revenue Growth (YoY)

30.2%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-17.8%

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

-₹43 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

0.3%

Weak

Thin margins leave little room for error

Net Margin

0.3%

Weak

Very little revenue reaches the bottom line

Current Ratio

3.79

Comfortable

Healthy short-term liquidity

52W Range Position

88%

Near high

Near its 52-week high

Technical Snapshot

RSI (14)

77.5

Overbought zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹31,284 Cr	₹34,916 Cr	₹66,229 Cr	₹94,186 Cr	+44.4%
EBITDA	₹83 Cr	₹134 Cr	₹335 Cr	₹426 Cr	+72.5%
EBITDA Margin	0.3%	0.4%	0.5%	0.5%	—
PAT (Net Profit)	₹44 Cr	₹76 Cr	₹227 Cr	₹348 Cr	+99.8%
EPS	₹4.78	₹8.31	₹24.86	₹38.12	+99.8%
ROE	23.6%	41.1%	56.4%	38.4%	—
ROCE	39.6%	63.4%	75.1%	50.5%	—
Total Debt	₹60 Cr	₹60 Cr	₹23 Cr	₹18 Cr	-33.0%
Free Cash Flow	-₹23 Cr	₹90 Cr	₹90 Cr	-₹43 Cr	—

🟢 Revenue has grown at 44.4% a year over 3 years.

🟢 EBITDA has grown at 72.5% a year over 3 years.

🟡 EBITDA Margin has held roughly flat at 0.5% over 3 years.

🟢 PAT (Net Profit) has grown at 99.8% a year over 3 years.

🟢 EPS has grown at 99.8% a year over 3 years.

🟢 ROE has risen from 23.6% to 38.4% over 3 years (+14.8 pts).

🟢 ROCE has risen from 39.6% to 50.5% over 3 years (+10.9 pts).

🟢 Total Debt has shrunk at 33.0% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹1,257 Cr

Total Liabilities

₹324 Cr

Cash & Equivalents

₹87 Cr

Operating Cash Flow

-₹42 Cr

Capex

-₹1 Cr

Shareholding (proxy)

Institutional Holding

2.5%

Insider Holding

86.8%

Peer Comparison

Company	P/E	ROE
TITAN COMPANY LIMITED	68.5x	36.7%
TRENT LTD	87.2x	25.9%
AVENUE SUPERMARTS LIMITED	69.9x	12.7%
ASIAN PAINTS LIMITED	46.9x	22.3%

Recent News

1 mixed5 general

AUGMONT ENTERPRISES LTD Share Price - Live NSE: AUGMONT Stock Price & Chart

Upstox, 16 Oct

Augmont Enterprises Ltd. IPO

The Economic Times, 13 Oct

Augmont Enterprises Ltd (AUGMONT) Share Price

Business Today, 16 Oct

Augmont Enterprises secures NSE partnership to promote Electronic Gold Receipts

scanx.trade, 17 OctPartnership

🟡Mixed / dependsA partnership, whose value depends entirely on terms that a headline will not carry. Worth reading the filing before assuming either way.

Augmont Enterprises IPO to Open on August 21, 2026; Check Price Band, Issue Size and Key Details

Groww, 21 Aug

Compare SOVEREIGN DI with

Equitymaster, 16 Oct

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.
RSI is in overbought territory — momentum entries here carry more short-term pullback risk.

DalalBaazaar Thesis

StrongGrowth · Profitability

MiddlingBusiness Quality · Financial Health

WeakValuation · Risk

Points for each in the Score ↑

Good business, demanding price

The quality is real and the price already reflects it. Buying here is a bet that the business keeps compounding for long enough to grow into the multiple — which good businesses often do, but it removes the margin for error that a lower price would have given you. 3 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 ↑