Baroda Extrusion Limited

Basic Materials — Copper · BSE

₹9.13−₹0.36 (−3.79%)

DalalBaazaar Score

60 / 100

🟢 Good

Verdict

NEUTRAL

Risk

Moderate

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

In simple words: Strong business and financial position, 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, 7:03 pm

Understanding the Business

Company site ↗

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

What does this company do?

Baroda Extrusion Limited engages in the manufacture and sale of extrusion products in India.

IndustryCopper

SectorBasic Materials

Annual revenue₹183 Cr

How does it make money?

Turns over ₹183 Cr a year. Of every ₹100 of sales, about ₹4 reaches shareholders as profit, with ₹6 left at the operating level before interest, tax and depreciation.

Who are its competitors?

The closest listed comparisons in its industry are TATA STEEL LIMITED, JSW STEEL LIMITED, ULTRATECH CEMENT LIMITED, ASIAN PAINTS 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 38.7% 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 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 +40% while net margin moved -253% 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+40%

Margin effect-253%

DalalBaazaar Score

60/ 100

Good

Weighted across six categories. Every point is explained below.

• P/E of 17.2x is within a normal band
✗ P/E is 147% above its own historical median of 7.0x — expensive by its own standards
✗ P/B of 6.44x is a steep premium to book

Quality vs. Valuation

Company Quality

68/ 100

Good

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

Valuation

49/ 100

Fair

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

17.2x

1.3Y Median

7.0x

16 monthly readings · mean 11.0x · range 5.4x–25.0x

Sector Median

28.7x

median of 4 sector peers

⚠️Current valuation is approximately 147% above its 1.3y median of 7.0x. 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 40% below the peer median of 28.7x.

vs. its own history

Expensive

7.0x median over 16 months · +147%

vs. sector peers

Cheap

28.7x median of 4 peers · -40%

vs. generic bands

Fair

15x–35x

EV/EBITDA

17.3x

PEG

—

What's Good / What's Bad

🟢 What's Going Well5

Margins are improving
EBITDA margin is up from -2.8% to 5.8% over 3 years.
Debt is being paid down
Total debt is down 89% over 3 years.
Return on capital is rising
ROCE has improved from -23.0% to 38.7%.
High return on capital employed
ROCE of 38.7% is the mark of a business that converts capital into profit efficiently.
Very low debt
Debt/Equity of 0.22x leaves the balance sheet with plenty of headroom.

🔴 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

🔴Inventory building faster than salesFinancial
Inventory up 206% against revenue up 40% — stock may not be moving.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹17 Cr in the latest year.
🟡Receivables growing faster than salesFinancial
Receivables up 86% against revenue up 40% — sales are being booked faster than they are collected.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 30% 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 38.7% 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 -2.8% to 5.8%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Deleveraging frees up earnings
Debt is down 89% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
Cheaper than its peers
It trades 40% 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 86% against revenue up 40%. 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 147% 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 9% a year✓ 11.9% CAGR
Latest reported year was 25.9%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 4%✓ 5.8%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹17 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.5x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 36%✓ 38.7%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

9 / 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

₹177 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

17.2x

Fair

Fairly valued against the generic band

P/B Ratio

6.44x

Rich

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

EPS (TTM)

₹0.53

Profitable

Profitable on a per-share basis

ROE

29.4%

Strong

Strong capital efficiency

ROCE

38.7%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.22x

Low

Conservative leverage

Revenue Growth (YoY)

25.9%

Healthy

Healthy top-line growth

Profit Growth (YoY)

126.4%

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

-₹17 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

7.6%

Average

Average margins

Net Margin

4.7%

Average

Average bottom-line conversion

Current Ratio

1.82

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.26

Defensive

Steadier than the market

52W Range Position

33%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

9.6 / 9.5

Bullish alignment (short > long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

31.0

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹130 Cr	₹127 Cr	₹159 Cr	₹183 Cr	+11.9%
EBITDA	-₹4 Cr	-₹1 Cr	₹24 Cr	₹11 Cr	—
EBITDA Margin	-2.8%	-0.8%	14.9%	5.8%	—
PAT (Net Profit)	-₹3 Cr	-₹1 Cr	₹20 Cr	₹7 Cr	—
EPS	₹-0.23	₹-0.07	₹1.32	₹0.38	—
ROCE	-23.0%	-5.4%	1377.8%	38.7%	—
Total Debt	₹53 Cr	₹59 Cr	₹26 Cr	₹6 Cr	-52.8%
Free Cash Flow	-₹3 Cr	-₹5 Cr	₹17 Cr	-₹17 Cr	—

🟢 Revenue has grown at 11.9% a year over 3 years.

🟢 EBITDA has turned positive, from -₹4 Cr to ₹11 Cr.

🟢 EBITDA Margin has risen from -2.8% to 5.8% over 3 years (+8.6 pts).

🟢 PAT (Net Profit) has turned positive, from -₹3 Cr to ₹7 Cr.

🟢 EPS has turned positive, from ₹-0.23 to ₹0.38.

🟢 ROCE has risen from -23.0% to 38.7% over 3 years (+61.8 pts).

🟢 Total Debt has shrunk at 52.8% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹55 Cr

Total Liabilities

₹30 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

-₹17 Cr

Capex

-₹0 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

56.2%

Peer Comparison

Company	P/E	ROE
TATA STEEL LIMITED	19.8x	10.8%
JSW STEEL LIMITED	12.0x	24.7%
ULTRATECH CEMENT LIMITED	37.6x	11.1%
ASIAN PAINTS LIMITED	46.9x	22.3%

Recent News

1 positive2 mixed3 general

Baroda Extrusion Share Price Rises 10.60%: Full Analysis

Univest, 11 AugPrice 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.

Baroda Extrusion Gets ₹27.83 Crore Orders; Shares Fall 1.06%

HDFC Sky, 01 OctPrice 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.

Baroda Extrusion Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 31 Aug

Baroda Extrusion approves MD and ED appointments at 35th AGM

scanx.trade, 24 Sept

Baroda Extrusion Q1FY27 net profit jumps 199% to ₹264 lakh

scanx.trade, 12 AugResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

Baroda Extrusion Ltd. Key Financial Ratios – Valuation, Profitability & More

Value Research, 02 Sept

Watch Items

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

DalalBaazaar Thesis

StrongFinancial Health · Growth · Profitability

MiddlingBusiness Quality

WeakValuation · Risk

Points for each in the Score ↑

Good business at a fair price

A sound business at a reasonable valuation. Suitable for a long-term holding, with the valuation and the direction of margins worth watching rather than the business itself. 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 ↑