Aureate Tradde Limited

Basic Materials — Specialty Chemicals · BSE

₹46.50−₹2.39 (−4.89%)

DalalBaazaar Score

55 / 100

🟡 Moderate

Verdict

CAUTION

Risk

Very High

Driven by high debt relative to equity, negative free cash flow, micro-cap size, which brings thin liquidity.

In simple words: Strong business and financial position, but sales are shrinking. Debt is 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 Aureate Tradde Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Aureate Tradde Limited engages in the trading, distribution, and supply of industrial and technological materials. The company's product portfolio comprises polymers and petrochemicals, lithium-ion and sodium-ion cells, and electric vehicle chargers.

IndustrySpecialty Chemicals

SectorBasic Materials

Employees9

Annual revenue₹150 Cr

How does it make money?

Turns over ₹150 Cr a year. Of every ₹100 of sales, about ₹4 reaches shareholders as profit, with ₹7 left at the operating level before interest, tax and depreciation. Each of its 9 employees supports ₹16.70 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹16.70 Cr

Who are its competitors?

The closest listed comparisons in its industry are ASIAN PAINTS LIMITED, PIDILITE INDUSTRIES LTD, SRF LTD, UPL 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 43.3%. Returns that high normally get competed away; when they persist, something is protecting them, and its ROE of 33.8% against a peer median of 22.3% is consistent with that. What that something is — brand, scale, switching costs, regulation — the accounts cannot tell you.

Peer median ROE22.3%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved -28% while net margin moved +548% 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-28%

Margin effect+548%

DalalBaazaar Score

55/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ High leverage magnifies any downturn in earnings
✗ Profits have swung sharply from year to year — earnings are hard to forecast
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

55/ 100

Average

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

Valuation

79/ 100

Cheap

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

11.5x

Sector Median

40.4x

median of 4 sector peers

🟢Against its sector it trades 72% below the peer median of 40.4x.

vs. its own history

Not enough price and earnings history

vs. sector peers

Cheap

40.4x median of 4 peers · -72%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

9.1x

PEG

0.17

What's Good / What's Bad

🟢 What's Going Well6

Margins are improving
EBITDA margin is up from 1.3% to 6.9% over 3 years.
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 22.0% to 28.9%.
Return on capital is rising
ROCE has improved from 19.5% to 43.3%.
High return on capital employed
ROCE of 43.3% 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

4 items require attention · 3 high · 1 watch

🔴High leverageFinancial
Debt/Equity of 1.85x — earnings must service borrowings before shareholders see anything.
🔴Receivables growing faster than salesFinancial
Receivables up 144% against revenue up -28% — sales are being booked faster than they are collected.
🔴Inventory building faster than salesFinancial
Inventory up 145% against revenue up -28% — stock may not be moving.
🟡Debt is increasingFinancial
Total debt is up 49% over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 43.3% 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.
Margin expansion has further to run
EBITDA margin has risen from 1.3% to 6.9%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Cheaper than its peers
It trades 72% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
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?

The debt load needs earnings to hold up
Debt is 3.3x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
Sales are being booked faster than collected
Receivables are up 144% against revenue up -28%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
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

1EBITDA margin holds above 5%✓ 6.9%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA falls below 3x✗ 3.3x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
3Interest cover stays above 3x✓ 3.8x
How much operating profit can fall before interest stops being comfortably covered.
4Free cash flow remains positive✓ ₹4 Cr
Profit that never becomes cash eventually stops being profit.
5ROCE stays above 40%✓ 43.3%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

7 / 11 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
✓ Short-term technical trend isn't bearish

Price history

Quick Metrics

5 good · 3 neutral · 3 weak

Market Cap

₹60 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

11.5x

Cheap

Cheap against the generic band

P/B Ratio

2.32x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹4.05

Profitable

Profitable on a per-share basis

ROE

33.8%

Strong

Strong capital efficiency

ROCE

43.3%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

1.85x

High

High leverage

Revenue Growth (YoY)

-10.2%

Shrinking

Sales are contracting

Profit Growth (YoY)

47.3%

Healthy

Profits growing at a healthy clip

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

6.8%

Average

Average asset productivity

Operating Margin

3.1%

Weak

Thin margins leave little room for error

Net Margin

3.5%

Average

Average bottom-line conversion

Current Ratio

1.19

Adequate

Adequate, but no real cushion

52W Range Position

46%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

46.3 / 40.3

Bullish alignment (short > long)

RSI (14)

60.5

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹209 Cr	₹171 Cr	₹174 Cr	₹150 Cr	-10.4%
EBITDA	₹3 Cr	₹5 Cr	₹6 Cr	₹10 Cr	+57.2%
EBITDA Margin	1.3%	2.7%	3.4%	6.9%	—
PAT (Net Profit)	₹1 Cr	₹1 Cr	₹3 Cr	₹5 Cr	+67.1%
EPS	₹0.87	₹1.11	₹1.98	—	—
ROE	22.0%	13.7%	19.9%	28.9%	—
ROCE	19.5%	22.9%	27.4%	43.3%	—
Total Debt	₹23 Cr	₹32 Cr	₹32 Cr	₹34 Cr	+14.1%
Free Cash Flow	-₹2 Cr	-₹3 Cr	-₹2 Cr	₹4 Cr	—

🔴 Revenue has shrunk at 10.4% a year over 3 years.

🟢 EBITDA has grown at 57.2% a year over 3 years.

🟢 EBITDA Margin has risen from 1.3% to 6.9% over 3 years (+5.6 pts).

🟢 PAT (Net Profit) has grown at 67.1% a year over 3 years.

🟢 ROE has risen from 22.0% to 28.9% over 3 years (+6.9 pts).

🟢 ROCE has risen from 19.5% to 43.3% over 3 years (+23.8 pts).

🔴 Total Debt has grown at 14.1% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹2 Cr to ₹4 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹79 Cr

Total Liabilities

₹61 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

₹4 Cr

Capex

-₹1 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

68.8%

Peer Comparison

Company	P/E	ROE
ASIAN PAINTS LIMITED	46.9x	22.3%
PIDILITE INDUSTRIES LTD	57.8x	24.4%
SRF LTD	33.8x	15.4%
UPL LIMITED	21.5x	6.1%

Recent News

6 general

AUREATE TRADDE LIMITED Share Price

Upstox, 15 Oct

Compare with

Equitymaster, 15 Oct

Aureate Tradde submits revised FY26 annual report to correct director's report errors

scanx.trade, 09 Oct

Aureate Tradde IPO Listing: SME stock lists at ₹70, same as issue price

Livemint, 05 Jun

Aureate Tradde IPO GMP Review Price Band Dates and Analysis

IndiaIPO, 26 May

Aureate Tradde Ltd’s Initial Public Offering Opens on May 29 to June 2, 2026, with Price Fixed at Rs. 70 Per Share

ThePrint, 29 May

Watch Items

Revenue growth is negative (-10.2%) on the latest reported period — check if this is one-off or a trend.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongProfitability · Valuation

MiddlingBusiness Quality · Growth

WeakFinancial Health · 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. 3 high-severity red flags sit above this conclusion and should be read first.

1 of 5 tripwires tripped — Debt / EBITDA falls below 3x · see Key things to watch ↑