Autoline Industries Limited

Consumer Cyclical — Auto Parts · NSE

₹83.29+₹3.30 (+4.13%)

DalalBaazaar Score

59 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

Very High

Driven by high debt relative to equity, short-term liabilities exceed short-term assets, negative free cash flow.

In simple words: Strong business and financial position, with both sales and profits growing well. 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 Autoline Industries Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Autoline Industries Limited manufactures and sells sheet metal stampings, welded assemblies, and molds for the automotive industries in India and internationally.

IndustryAuto Parts

SectorConsumer Cyclical

Employees1,047

Annual revenue₹824 Cr

How does it make money?

Turns over ₹824 Cr a year. Of every ₹100 of sales, about ₹5 reaches shareholders as profit, with ₹10 left at the operating level before interest, tax and depreciation. Each of its 1,047 employees supports ₹78.7 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹78.7 lakh

Who are its competitors?

The closest listed comparisons in its industry are BOSCH LIMITED, MARUTI SUZUKI INDIA LTD., TVS MOTOR COMPANY LTD, EICHER MOTORS 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?Some evidence

ROCE of 24.8% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

Peer median ROE23.0%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +45% while net margin moved +139% 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+45%

Margin effect+139%

DalalBaazaar Score

59/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Debt/Equity of 1.65x is high — earnings must service borrowings before shareholders see anything
✗ Current ratio of 0.79 — short-term liabilities exceed short-term assets
✗ Free cash flow is negative — growth is being funded by borrowing or fresh equity
✗ Interest cover of only 2.1x — little room if profits dip
✗ Debt has grown 23.3% a year — worth checking what it bought

Quality vs. Valuation

Company Quality

57/ 100

Average

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

Valuation

81/ 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

9.5x

3Y Median

20.9x

40 monthly readings · mean 25.8x · range 9.6x–50.7x

Sector Median

45.7x

median of 4 sector peers

🟢Current valuation is approximately 55% below its 3y median of 20.9x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

🟢Against its sector it trades 79% below the peer median of 45.7x.

vs. its own history

Cheap

20.9x median over 40 months · -55%

vs. sector peers

Cheap

45.7x median of 4 peers · -79%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

8.3x

PEG

0.18

What's Good / What's Bad

🟢 What's Going Well5

Margins are improving
EBITDA margin is up from 7.0% to 10.3% over 3 years.
Return on equity is rising
ROE has improved from 14.8% to 19.5%.
Return on capital is rising
ROCE has improved from 18.0% to 24.8%.
High return on capital employed
ROCE of 24.8% 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

6 items require attention · 5 high · 1 watch

🔴Debt has risen sharplyFinancial
Total debt is up 87% over 3 years, from ₹173 Cr to ₹325 Cr.
🔴High leverageFinancial
Debt/Equity of 1.65x — earnings must service borrowings before shareholders see anything.
🔴Free cash flow negative for 3 yearsFinancial
The business has not covered its capital spending from operations for several years running, which has to be funded externally.
🔴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 146% against revenue up 45% — sales are being booked faster than they are collected.
🟡Short-term liquidity is tightFinancial
Current ratio of 0.79 — near-term obligations exceed near-term assets.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 24.8% 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 7.0% to 10.3%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Priced below its own history
The stock trades 55% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Cheaper than its peers
It trades 79% 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 3.8x 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 146% against revenue up 45%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
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
5 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 10% a year✓ 13.1% CAGR
Latest reported year was 74.7%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 8%✓ 10.3%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA falls below 3x✗ 3.8x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
4Free cash flow remains positive✗ -₹73 Cr
Profit that never becomes cash eventually stops being profit.
5Interest cover stays above 3x✗ 2.1x
How much operating profit can fall before interest stops being comfortably covered.

Investment Checklist

6 / 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

6 good · 3 neutral · 2 weak

Market Cap

₹378 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

9.5x

Cheap

Cheap against the generic band

P/B Ratio

1.92x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹8.79

Profitable

Profitable on a per-share basis

ROE

19.5%

Strong

Strong capital efficiency

ROCE

24.8%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

1.65x

High

High leverage

Revenue Growth (YoY)

74.7%

Healthy

Healthy top-line growth

Profit Growth (YoY)

266.7%

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

-₹73 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

P/E (Forward)

12.6x

Flat

At or above the trailing multiple — no earnings uplift is being priced in

Operating Margin

4.7%

Weak

Thin margins leave little room for error

Net Margin

4.3%

Average

Average bottom-line conversion

Current Ratio

0.79

Tight

Tight short-term liquidity

Beta (vs Nifty)

0.29

Defensive

Steadier than the market

52W Range Position

63%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

82.5 / 86.4

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

54.3

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹570 Cr	₹588 Cr	₹659 Cr	₹824 Cr	+13.1%
EBITDA	₹40 Cr	₹53 Cr	₹73 Cr	₹85 Cr	+28.9%
EBITDA Margin	7.0%	9.1%	11.0%	10.3%	—
PAT (Net Profit)	₹11 Cr	₹16 Cr	₹18 Cr	₹39 Cr	+51.3%
EPS	₹2.85	₹4.08	₹4.21	₹8.59	+44.4%
ROE	14.8%	12.1%	11.6%	19.5%	—
ROCE	18.0%	15.4%	14.7%	24.8%	—
Total Debt	₹173 Cr	₹194 Cr	₹288 Cr	₹325 Cr	+23.3%
Free Cash Flow	₹58 Cr	-₹86 Cr	-₹89 Cr	-₹73 Cr	—

🟢 Revenue has grown at 13.1% a year over 3 years.

🟢 EBITDA has grown at 28.9% a year over 3 years.

🟢 EBITDA Margin has risen from 7.0% to 10.3% over 3 years (+3.3 pts).

🟢 PAT (Net Profit) has grown at 51.3% a year over 3 years.

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

🟢 ROE has risen from 14.8% to 19.5% over 3 years (+4.7 pts).

🟢 ROCE has risen from 18.0% to 24.8% over 3 years (+6.8 pts).

🔴 Total Debt has grown at 23.3% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹58 Cr to -₹73 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹749 Cr

Total Liabilities

₹552 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

₹10 Cr

Capex

-₹83 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

53.8%

Corporate Actions

Ex-Dividend Date

19 Sept 2013

Peer Comparison

Company	P/E	ROE
BOSCH LIMITED	56.9x	15.9%
MARUTI SUZUKI INDIA LTD.	25.2x	13.4%
TVS MOTOR COMPANY LTD	56.8x	35.8%
EICHER MOTORS LTD	34.7x	23.0%

Recent News

2 mixed4 general

Autoline Industries promoters confirm no share encumbrance in FY26

scanx.trade, 14 Oct

Autoline Industries Share Price Target 2027, 2028 and 2030: Long Term Analyst Forecast

Univest, 07 AugAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

With EPS Growth And More, Autoline Industries (NSE:AUTOIND) Makes An Interesting Case

Simply Wall Street, 21 Jul

Autoline Industries Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 02 Sept

Autoline Industries Share Price Jumps 16% After Rs 100 Crore Order From Tata Motors PV

NDTV Profit, 03 SeptPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

16% jump in share price of this firm after ₹100 crore order from Tata Motors PV | Do you own any?

Livemint, 03 Sept

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongGrowth · Profitability · Valuation

MiddlingBusiness Quality

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. 5 high-severity red flags sit above this conclusion and should be read first.

3 of 5 tripwires tripped — Debt / EBITDA falls below 3x; Free cash flow remains positive; Interest cover stays above 3x · see Key things to watch ↑