Aviva Industries Limited

Basic Materials — Building Materials · BSE

₹64.19₹0.00 (0.00%)

DalalBaazaar Score

57 / 100

🟡 Moderate

Verdict

CAUTION

Risk

High

Driven by moderate debt load, negative free cash flow, micro-cap size, which brings thin liquidity.

In simple words: The business is earning a fairly low return on the money invested in it, with both sales and profits growing well. Cash generation 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 Aviva Industries Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Aviva Industries Limited manufactures and trades in agriculture products in India. The company is also involved in the trading of textile products. Aviva Industries Limited was incorporated in 1984 and is based in Ahmedabad, India.

IndustryBuilding Materials

SectorBasic Materials

Annual revenue₹82 Cr

How does it make money?

Turns over ₹82 Cr a year. Of every ₹100 of sales, about ₹2 reaches shareholders as profit, with ₹3 left at the operating level before interest, tax and depreciation.

Who are its competitors?

The closest listed comparisons in its industry are ULTRATECH CEMENT LIMITED, GRASIM INDUSTRIES LTD, AMBUJA CEMENTS LTD, SHREE CEMENT 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 3.4% 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 ROE7.4%

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 +11726% while net margin moved +183% 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+11726%

Margin effect+183%

DalalBaazaar Score

57/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ ROE of 2.5% is weak

Quality vs. Valuation

Company Quality

56/ 100

Average

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

Valuation

75/ 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

8.4x

3Y Median

760.0x

40 monthly readings · mean 888.0x · range 79.1x–1552.3x

Sector Median

36.2x

median of 4 sector peers

🟢Current valuation is approximately 99% below its 3y median of 760.0x. 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 77% below the peer median of 36.2x.

vs. its own history

Cheap

760.0x median over 40 months · -99%

vs. sector peers

Cheap

36.2x median of 4 peers · -77%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

80.3x

PEG

0.01

What's Good / What's Bad

🟢 What's Going Well2

Margins are improving
EBITDA margin is up from -1.0% to 3.1% over 3 years.
Return on capital is rising
ROCE has improved from -0.3% to 3.4%.

🔴 What Needs Attention0

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

Red Flags

4 items require attention · 2 high · 2 watch

🔴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 56625% against revenue up 11726% — sales are being booked faster than they are collected.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹67 Cr in the latest year.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 1535% over 3 years — each existing share owns a smaller slice of the company.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from -1.0% to 3.1%. 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 99% 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 77% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.

🔴 Bear CaseWhat could go wrong?

Sales are being booked faster than collected
Receivables are up 56625% against revenue up 11726%. 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
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 293% a year✓ 390.8% CAGR
Latest reported year was 256247.0%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 1%✓ 3.1%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹67 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.4x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 8%✗ 3.4%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

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

4 good · 4 neutral · 3 weak

Market Cap

₹209 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

8.4x

Cheap

Cheap against the generic band

P/B Ratio

2.09x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹7.63

Profitable

Profitable on a per-share basis

ROE

2.5%

Weak

Weak capital efficiency

ROCE

3.4%

Weak

Low return on total capital employed

Debt/Equity

1.22x

Moderate

Moderate leverage

Revenue Growth (YoY)

256247.0%

Healthy

Healthy top-line growth

Profit Growth (YoY)

2268.0%

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

-₹67 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

2.0%

Weak

Thin margins leave little room for error

Net Margin

2.1%

Weak

Very little revenue reaches the bottom line

Current Ratio

23.00

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

-0.26

Defensive

Steadier than the market

52W Range Position

75%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

63.0 / 61.6

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

100.0

Overbought zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹1 Cr	₹1 Cr	₹0 Cr	₹82 Cr	+390.8%
EBITDA	-₹0 Cr	-₹0 Cr	-₹0 Cr	₹3 Cr	—
EBITDA Margin	-1.0%	-6.0%	-271.2%	3.1%	—
PAT (Net Profit)	₹0 Cr	-₹0 Cr	-₹0 Cr	₹2 Cr	+594.4%
EPS	₹0.04	₹-0.23	₹-0.58	₹0.77	+168.0%
ROE	0.2%	-1.1%	-2.9%	2.5%	—
ROCE	-0.3%	-0.9%	-2.3%	3.4%	—
Total Debt	₹1 Cr	₹1 Cr	₹1 Cr	₹1 Cr	+6.5%
Free Cash Flow	₹0 Cr	-₹0 Cr	₹0 Cr	-₹67 Cr	—

🟢 Revenue has grown at 390.8% a year over 3 years.

🟢 EBITDA has turned positive, from -₹0 Cr to ₹3 Cr.

🟢 EBITDA Margin has risen from -1.0% to 3.1% over 3 years (+4.1 pts).

🟢 PAT (Net Profit) has grown at 594.4% a year over 3 years.

🟢 EPS has grown at 168.0% a year over 3 years.

🟢 ROE has risen from 0.2% to 2.5% over 3 years (+2.3 pts).

🟢 ROCE has risen from -0.3% to 3.4% over 3 years (+3.7 pts).

🔴 Total Debt has grown at 6.5% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹0 Cr to -₹67 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹79 Cr

Total Liabilities

₹4 Cr

Cash & Equivalents

₹3 Cr

Operating Cash Flow

-₹67 Cr

Capex

-₹0 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

98.4%

Peer Comparison

Company	P/E	ROE
ULTRATECH CEMENT LIMITED	37.6x	11.1%
GRASIM INDUSTRIES LTD	34.8x	5.5%
AMBUJA CEMENTS LTD	20.4x	7.4%
SHREE CEMENT LIMITED	49.7x	7.0%

Recent News

1 mixed5 general

Aviva Industries Ltd. Upper Circuit Streak: Day 2 Price and Data

Univest, 29 Sept

Compare with AVIVA INDUSTRIES

Equitymaster, 27 Sept

AVIVA INDUSTRIES LTD. Share Price

Upstox, 05 May

Aviva Industries Ltd. Key Financial Ratios – Valuation, Profitability & More

Value Research, 04 Sept

Aviva Industries submits revised voting results for AGM due to clerical error

scanx.trade, 28 SeptResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Aviva Industries Ltd. Peer Comparison – Compare with Others

Value Research, 02 Sept

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 · Valuation

MiddlingFinancial Health

WeakBusiness Quality · Profitability · 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 — Free cash flow remains positive; ROCE stays above 8% · see Key things to watch ↑