Avro India Limited

Consumer Cyclical — Furnishings, Fixtures & Appliances · NSE

₹5.69+₹0.51 (+9.85%)

DalalBaazaar Score

47 / 100

🟡 Moderate

Verdict

CAUTION

Risk

Moderate

Driven by negative free cash flow, micro-cap size, which brings thin liquidity, falling profits.

In simple words: The business is earning a fairly low return on the money invested in it, though profits are falling even as sales grow. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:57 pm

Understanding the Business

Company site ↗

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

What does this company do?

Avro India Limited engages in the manufacture and sale of plastic molded furniture and granules in India. The company provides chairs, tables, stools, gold, cushion, armless chair, baby chair, matt and gloss, round table, plastic cabinets, shoe racks, and kid's chairs.

IndustryFurnishings, Fixtures & Appliances

SectorConsumer Cyclical

Employees77

Annual revenue₹91 Cr

How does it make money?

Turns over ₹91 Cr a year. Of every ₹100 of sales, about ₹5 reaches shareholders as profit, with ₹14 left at the operating level before interest, tax and depreciation. Each of its 77 employees supports ₹1.18 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹1.18 Cr

Who are its competitors?

The closest listed comparisons in its industry are HAVELLS INDIA LIMITED, VOLTAS LTD, TITAN COMPANY 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 8.2% 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 ROE17.1%

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 +14% while net margin moved -3% 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+14%

Margin effect-3%

DalalBaazaar Score

47/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ ROE of 5.1% is weak
✗ ROE has fallen by 11.6 points over the period

Quality vs. Valuation

Company Quality

42/ 100

Weak

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

Valuation

73/ 100

Cheap

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

Optically cheap, but the underlying business scores poorly. Cheap-and-weak is what a value trap looks like from the outside — the low price may be deserved.

Historical Valuation

Current P/E

25.9x

3Y Median

39.9x

40 monthly readings · mean 55.9x · range 25.4x–282.2x

Sector Median

68.5x

median of 3 sector peers

🟢Current valuation is approximately 35% below its 3y median of 39.9x. 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 62% below the peer median of 68.5x.

vs. its own history

Cheap

39.9x median over 40 months · -35%

vs. sector peers

Cheap

68.5x median of 3 peers · -62%

vs. generic bands

Fair

15x–35x

EV/EBITDA

7.2x

PEG

7.47

What's Good / What's Bad

🟢 What's Going Well3

Margins are improving
EBITDA margin is up from 10.7% to 14.0% over 3 years.
Very low debt
Debt/Equity of 0.20x leaves the balance sheet with plenty of headroom.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 16.7% to 5.1% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 24.4% to 8.2% — often a sign of competition or overexpansion.

Red Flags

5 items require attention · 4 high · 1 watch

🔴Debt has risen sharplyFinancial
Total debt is up 53% over 3 years, from ₹12 Cr to ₹18 Cr.
🔴Free cash flow negative for 4 yearsFinancial
The business has not covered its capital spending from operations for several years running, which has to be funded externally.
🔴Receivables growing faster than salesFinancial
Receivables up 71% against revenue up 14% — sales are being booked faster than they are collected.
🔴Inventory building faster than salesFinancial
Inventory up 210% against revenue up 14% — stock may not be moving.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 32% 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 10.7% to 14.0%. 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 35% 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 62% 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?

Sales are being booked faster than collected
Receivables are up 71% against revenue up 14%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
Growth barely outpaces inflation
Revenue compounding at 4.4% a year is close to the rate prices rise, so the business is gaining little ground in real terms. That leaves the share price dependent on a re-rating rather than on earnings growth.
Returns on shareholder capital are falling
ROE has dropped from 16.7% to 5.1%. Each rupee of equity earns less than it did, so profit growth increasingly depends on raising more capital rather than on the existing base working harder.
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
4 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 12%✓ 14.0%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Free cash flow remains positive✗ -₹3 Cr
Profit that never becomes cash eventually stops being profit.
3Revenue growth stays above 4% a year✓ 4.4% CAGR
Latest reported year was 17.0%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
4Debt / EBITDA stays below 2x✓ 1.4x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 8%✓ 8.2%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

5 / 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

₹76 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

25.9x

Fair

Fairly valued against the generic band

P/B Ratio

0.85x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹0.22

Profitable

Profitable on a per-share basis

ROE

5.1%

Weak

Weak capital efficiency

ROCE

8.2%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.20x

Low

Conservative leverage

Revenue Growth (YoY)

17.0%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-32.4%

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

-₹3 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

4.4%

Weak

Thin margins leave little room for error

Net Margin

4.3%

Average

Average bottom-line conversion

Current Ratio

3.59

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

-0.26

Defensive

Steadier than the market

52W Range Position

14%

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

6.4 / 7.8

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

37.4

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹80 Cr	₹93 Cr	₹78 Cr	₹91 Cr	+4.4%
EBITDA	₹9 Cr	₹9 Cr	₹10 Cr	₹13 Cr	+14.3%
EBITDA Margin	10.7%	10.1%	12.2%	14.0%	—
PAT (Net Profit)	₹4 Cr	₹4 Cr	₹3 Cr	₹5 Cr	+3.5%
EPS	₹0.41	₹0.4	₹0.28	₹0.03	-57.3%
ROE	16.7%	14.0%	3.6%	5.1%	—
ROCE	24.4%	20.9%	6.1%	8.2%	—
Total Debt	₹12 Cr	₹16 Cr	₹20 Cr	₹18 Cr	+15.1%
Free Cash Flow	-₹3 Cr	-₹3 Cr	-₹13 Cr	-₹3 Cr	—

🟢 Revenue has grown at 4.4% a year over 3 years.

🟢 EBITDA has grown at 14.3% a year over 3 years.

🟢 EBITDA Margin has risen from 10.7% to 14.0% over 3 years (+3.3 pts).

🟢 PAT (Net Profit) has grown at 3.5% a year over 3 years.

🔴 EPS has shrunk at 57.3% a year over 3 years.

🔴 ROE has fallen from 16.7% to 5.1% over 3 years (-11.6 pts).

🔴 ROCE has fallen from 24.4% to 8.2% over 3 years (-16.2 pts).

🔴 Total Debt has grown at 15.1% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹121 Cr

Total Liabilities

₹32 Cr

Cash & Equivalents

₹2 Cr

Operating Cash Flow

₹4 Cr

Capex

-₹7 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

67.6%

Peer Comparison

Company	P/E	ROE
HAVELLS INDIA LIMITED	43.5x	17.1%
VOLTAS LTD	75.8x	7.0%
TITAN COMPANY LIMITED	68.5x	36.7%

Recent News

1 mixed5 general

Avro India secures NSE, BSE approval for listing 10,60,900 equity shares

scanx.trade, 18 Oct

AVRO India Share Price and Technical Analysis

Kalkine India, 12 Oct

Subdued Growth No Barrier To Avro India Limited's (NSE:AVROIND) Price

Simply Wall Street, 14 Jan

Avro India plans stock exchange listing of Avro Recycling by FY28, eyes up to Rs 300 cr via IPO

The Economic Times, 08 Jan

Avro India Sets May 5 Record Date for Share Split Following EGM Approval

scanx.trade, 19 Apr

Avro India Share Price Fall: Market Cap Rs 106.4 Cr

Univest, 22 SeptPrice 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.

Watch Items

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

DalalBaazaar Thesis

StrongValuation

MiddlingFinancial Health

WeakBusiness Quality · Growth · Profitability · Risk

Points for each in the Score ↑

Cheap, but for a reason

The low price is the whole case here, and the business underneath scores poorly. Cheap-and-weak is what a value trap looks like from the outside — it needs a specific reason the numbers are about to improve, not just the observation that they are low. 4 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 ↑