Axis Solutions Limited

Industrials — Specialty Industrial Machinery · BSE

₹622.80−₹0.35 (−0.06%)

DalalBaazaar Score

68 / 100

🟢 Good

Verdict

NEUTRAL

Risk

High

Driven by negative free cash flow, micro-cap size, which brings thin liquidity, a very high earnings multiple, which leaves little margin for disappointment.

In simple words: Strong business and financial position, 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, 6:58 pm

Understanding the Business

Company site ↗

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

What does this company do?

Axis Solutions Limited engages in the manufacture and sale of engineering products for oil and gas, refinery, cement, and water pollution equipment industries in India and internationally.

IndustrySpecialty Industrial Machinery

SectorIndustrials

Employees222

Annual revenue₹241 Cr

How does it make money?

Turns over ₹241 Cr a year. Of every ₹100 of sales, about ₹12 reaches shareholders as profit, with ₹19 left at the operating level before interest, tax and depreciation. Each of its 222 employees supports ₹1.08 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹1.08 Cr

Who are its competitors?

The closest listed comparisons in its industry are SIEMENS LTD, ABB INDIA LIMITED, LARSEN & TOUBRO LTD., HAVELLS INDIA 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?Some evidence

ROCE of 27.5% 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 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 +260% while net margin moved -124% 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+260%

Margin effect-124%

DalalBaazaar Score

68/ 100

Good

Weighted across six categories. Every point is explained below.

✗ P/E of 97.2x is demanding — it needs sustained high growth to justify
✗ P/E is 865% above its own historical median of 10.1x — expensive by its own standards
✗ P/B of 20.34x is a steep premium to book

Quality vs. Valuation

Company Quality

81/ 100

Excellent

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

Valuation

23/ 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.

Historical Valuation

Current P/E

97.2x

2Y Median

10.1x

28 monthly readings · mean 27.0x · range 0.5x–102.5x

Sector Median

66.2x

median of 4 sector peers

⚠️Current valuation is approximately 865% above its 2y median of 10.1x. Paying more than usual needs a reason — faster growth, a better balance sheet, or a re-rating you believe in.

⚠️Against its sector it trades 47% above the peer median of 66.2x.

vs. its own history

Expensive

10.1x median over 28 months · +865%

vs. sector peers

Expensive

66.2x median of 4 peers · +47%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

66.3x

PEG

—

What's Good / What's Bad

🟢 What's Going Well3

Margins are improving
EBITDA margin is up from -12.9% to 18.9% over 3 years.
Return on capital is rising
ROCE has improved from -59.4% to 27.5%.
High return on capital employed
ROCE of 27.5% is the mark of a business that converts capital into profit efficiently.

🔴 What Needs Attention0

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

Red Flags

4 items require attention · 1 high · 3 watch

🔴Receivables growing faster than salesFinancial
Receivables up 668% against revenue up 260% — sales are being booked faster than they are collected.
🟡Debt is increasingFinancial
Total debt is up 33% over 3 years.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹33 Cr in the latest year.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 7739% 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 27.5% 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.
Margin expansion has further to run
EBITDA margin has risen from -12.9% to 18.9%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.

🔴 Bear CaseWhat could go wrong?

Sales are being booked faster than collected
Receivables are up 668% against revenue up 260%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
The price already assumes success
The stock trades 865% above its own median multiple. At this level the business has to deliver just to stand still, and a stumble is repriced twice — lower earnings on a lower multiple.
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.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 40% a year✓ 53.2% CAGR
Latest reported year was 78.2%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 17%✓ 18.9%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹33 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 1.8x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 24%✓ 27.5%
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 · 2 neutral · 4 weak

Market Cap

₹2,943 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

97.2x

Expensive

Expensive — verify against sector peers

P/B Ratio

20.34x

Rich

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

EPS (TTM)

₹6.41

Profitable

Profitable on a per-share basis

ROE

20.1%

Strong

Strong capital efficiency

ROCE

27.5%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.58x

Low

Conservative leverage

Revenue Growth (YoY)

78.2%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-13.9%

Falling

Profits are shrinking

Dividend Yield

0.10%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

-₹33 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

11.1%

Average

Average margins

Net Margin

11.6%

Good

Strong bottom-line conversion

Current Ratio

1.74

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.68

Defensive

Steadier than the market

52W Range Position

91%

Near high

Near its 52-week high

Technical Snapshot

SMA 20 / SMA 50

611.8 / 585.7

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

56.3

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹67 Cr	₹136 Cr	₹201 Cr	₹241 Cr	+53.2%
EBITDA	-₹9 Cr	₹26 Cr	₹37 Cr	₹46 Cr	—
EBITDA Margin	-12.9%	18.8%	18.3%	18.9%	—
PAT (Net Profit)	-₹33 Cr	₹32 Cr	₹33 Cr	₹29 Cr	—
EPS	₹-550.2	₹7.17	₹7.49	₹6.12	—
ROE	—	54.6%	28.6%	20.1%	—
ROCE	-59.4%	45.8%	27.9%	27.5%	—
Total Debt	₹61 Cr	₹35 Cr	₹38 Cr	₹81 Cr	+10.0%
Free Cash Flow	-₹39 Cr	₹9 Cr	-₹22 Cr	-₹33 Cr	—

🟢 Revenue has grown at 53.2% a year over 3 years.

🟢 EBITDA has turned positive, from -₹9 Cr to ₹46 Cr.

🟢 EBITDA Margin has risen from -12.9% to 18.9% over 3 years (+31.8 pts).

🟢 PAT (Net Profit) has turned positive, from -₹33 Cr to ₹29 Cr.

🟢 EPS has turned positive, from ₹-550.2 to ₹6.12.

🔴 ROE has fallen from 54.6% to 20.1% over 3 years (-34.6 pts).

🟢 ROCE has risen from -59.4% to 27.5% over 3 years (+86.9 pts).

🔴 Total Debt has grown at 10.0% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹284 Cr

Total Liabilities

₹142 Cr

Cash & Equivalents

₹5 Cr

Operating Cash Flow

-₹22 Cr

Capex

-₹11 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

88.8%

Corporate Actions

Dividend Rate

₹0.6

Ex-Dividend Date

11 Sept 2026

Peer Comparison

Company	P/E	ROE
SIEMENS LTD	88.8x	10.5%
ABB INDIA LIMITED	92.6x	19.1%
LARSEN & TOUBRO LTD.	30.1x	15.2%
HAVELLS INDIA LIMITED	43.5x	17.1%

Recent News

1 positive1 mixed4 general

Axis Solutions Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 30 Aug

Axis Solutions sets Sept 19 AGM with ₹0.60 dividend, pay hikes

scanx.trade, 27 AugCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

Rs 1 Lakh To Rs 23.2 Lakh: This Micro-Cap Stock's 2,220% Rally In A Year

NDTV Profit, 27 Aug

AXIS Capital Holdings Limited (AXS) Stock Price, News, Quote & History

Yahoo! Finance Canada, 16 Oct

Top stocks in focus today: Investors must watch Titan, Utkarsh SFB, HCL Tech shares on Wed, 7 Oct | Triggers

Livemint, 06 Oct

Axis Solutions debuts on BSE after completing merger

Press Trust of India, 31 JulM&A

🟡Mixed / dependsAcquisitions change the balance sheet before they change the earnings. Look at what was paid, how it was funded, and whether debt rose.

Watch Items

Trading very close to its 52-week high — momentum-driven entries here carry more mean-reversion risk.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongBusiness Quality · Financial Health · Growth · Profitability

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. 1 high-severity red flag sits above this conclusion and should be read first.

1 of 5 tripwires tripped — Free cash flow remains positive · see Key things to watch ↑