Black Rose Industries Limited

Basic Materials — Specialty Chemicals · NSE

₹101.20−₹0.40 (−0.39%)

DalalBaazaar Score

64 / 100

🟢 Good

Verdict

REASONABLE

Risk

Moderate

Driven by moderate debt load, micro-cap size, which brings thin liquidity.

In simple words: Strong business and financial position, with both sales and profits growing well. Nothing on this snapshot stands out as an immediate concern — the usual checks on business quality and management still apply.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 8:29 pm

Understanding the Business

Company site ↗

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

What does this company do?

Black Rose Industries Limited engages in the import, distribution, and export of specialty and performance chemicals in India and internationally.

IndustrySpecialty Chemicals

SectorBasic Materials

Employees79

Annual revenue₹322 Cr

How does it make money?

Turns over ₹322 Cr a year. Of every ₹100 of sales, about ₹7 reaches shareholders as profit, with ₹11 left at the operating level before interest, tax and depreciation. Each of its 79 employees supports ₹4.08 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹4.08 Cr

Who are its competitors?

The closest listed comparisons in its industry are ASIAN PAINTS LIMITED, PIDILITE INDUSTRIES LTD, SRF LTD, UPL 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 17.7% 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 -25% while net margin moved +278% 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-25%

Margin effect+278%

DalalBaazaar Score

64/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of 0.55 — historically steadier than the index
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal

Quality vs. Valuation

Company Quality

66/ 100

Good

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

Valuation

74/ 100

Cheap

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

A good business currently available at an undemanding price — the combination this framework is built to look for.

Historical Valuation

Current P/E

18.0x

Sector Median

40.4x

median of 4 sector peers

🟢Against its sector it trades 55% below the peer median of 40.4x.

vs. its own history

Not enough price and earnings history

vs. sector peers

Cheap

40.4x median of 4 peers · -55%

vs. generic bands

Fair

15x–35x

EV/EBITDA

14.9x

PEG

0.43

What's Good / What's Bad

🟢 What's Going Well6

Margins are improving
EBITDA margin is up from 3.6% to 10.7% over 3 years.
Debt is being paid down
Total debt is down 72% over 3 years.
Cash generation is improving
Free cash flow is up 125% over 3 years.
Return on equity is rising
ROE has improved from 6.2% to 13.2%.
Return on capital is rising
ROCE has improved from 9.4% to 17.7%.
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

2 items require attention · 1 high · 1 watch

🔴Inventory building faster than salesFinancial
Inventory up 63% against revenue up -25% — stock may not be moving.
🟡Receivables growing faster than salesFinancial
Receivables up 18% against revenue up -25% — sales are being booked faster than they are collected.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 3.6% to 10.7%. 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 72% 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 55% 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 18% against revenue up -25%. 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.

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

1EBITDA margin holds above 9%✓ 10.7%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Free cash flow remains positive✓ ₹38 Cr
Profit that never becomes cash eventually stops being profit.
3Debt / EBITDA stays below 2x✓ 0.0x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
4ROCE stays above 15%✓ 17.7%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

8 / 10 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

Price history

Quick Metrics

5 good · 6 neutral · 0 weak

Market Cap

₹516 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

18.0x

Fair

Fairly valued against the generic band

P/B Ratio

3.04x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹5.62

Profitable

Profitable on a per-share basis

ROE

13.2%

Moderate

Moderate capital efficiency

ROCE

17.7%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.85x

Moderate

Moderate leverage

Revenue Growth (YoY)

48.8%

Healthy

Healthy top-line growth

Profit Growth (YoY)

148.4%

Healthy

Profits growing at a healthy clip

Dividend Yield

1.24%

Modest

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

Free Cash Flow

₹38 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

15.0%

Average

Average margins

Net Margin

8.1%

Average

Average bottom-line conversion

Current Ratio

4.66

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.55

Defensive

Steadier than the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

RSI (14)

25.3

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹430 Cr	₹379 Cr	₹336 Cr	₹322 Cr	-9.1%
EBITDA	₹16 Cr	₹32 Cr	₹32 Cr	₹35 Cr	+30.3%
EBITDA Margin	3.6%	8.3%	9.4%	10.7%	—
PAT (Net Profit)	₹8 Cr	₹21 Cr	₹21 Cr	₹22 Cr	+41.5%
EPS	₹1.55	₹4.16	₹4.11	₹4.4	+41.6%
ROE	6.2%	14.6%	13.7%	13.2%	—
ROCE	9.4%	18.9%	18.2%	17.7%	—
Total Debt	₹5 Cr	₹4 Cr	₹11 Cr	₹1 Cr	-34.6%
Free Cash Flow	₹17 Cr	₹14 Cr	-₹16 Cr	₹38 Cr	+31.0%

🔴 Revenue has shrunk at 9.1% a year over 3 years.

🟢 EBITDA has grown at 30.3% a year over 3 years.

🟢 EBITDA Margin has risen from 3.6% to 10.7% over 3 years (+7.1 pts).

🟢 PAT (Net Profit) has grown at 41.5% a year over 3 years.

🟢 EPS has grown at 41.6% a year over 3 years.

🟢 ROE has risen from 6.2% to 13.2% over 3 years (+7.0 pts).

🟢 ROCE has risen from 9.4% to 17.7% over 3 years (+8.3 pts).

🟢 Total Debt has shrunk at 34.6% a year over 3 years.

🟢 Free Cash Flow has grown at 31.0% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹208 Cr

Total Liabilities

₹38 Cr

Cash & Equivalents

₹3 Cr

Operating Cash Flow

₹45 Cr

Capex

-₹7 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

79.7%

Corporate Actions

Dividend Rate

₹1.25

Ex-Dividend Date

02 Sept 2026

Peer Comparison

Company	P/E	ROE
ASIAN PAINTS LIMITED	46.9x	22.3%
PIDILITE INDUSTRIES LTD	57.8x	24.4%
SRF LTD	33.8x	15.4%
UPL LIMITED	21.5x	6.1%

Recent News

1 negative5 general

Black Rose Industries (NSEI:BLACKROSE) - Stock Analysis

Simply Wall Street, 25 Apr

Black Rose Industries accepts resignation of VP Innovation Pavankumar Aduri

scanx.trade, 13 Oct

BLACKROSE Stock Price and Chart — NSE:BLACKROSE

TradingView, 20 Apr

Black Rose Industries Ltd Downgraded to Hold Amid Mixed Technical and Valuation Signals

MarketsMojo, 06 OctAnalyst view

🔴Potentially negativeAn analyst opinion changing, which moves the price without changing the business.

Black Rose Ind Consolidated June 2026 Net Sales at Rs 89.08 crore, up 48.84% Y-o-Y

Moneycontrol.com, 10 Aug

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

Value Research, 27 Aug

Watch Items

Trading very close to its 52-week low — worth checking whether this reflects a temporary setback or a structural problem.
Cross-check against the company's latest quarterly filing / investor presentation before acting.
RSI is in oversold territory — could mean either a bargain or a stock still falling for good reason. Check the 'why' before assuming reversal.

DalalBaazaar Thesis

StrongBusiness Quality · Financial Health

MiddlingGrowth · Profitability · Valuation · Risk

Points for each in the Score ↑

Attractive on both counts

A good business currently available at an undemanding price — the combination this framework exists to look for. The work left is qualitative: whether the advantage the numbers imply is one you can identify and expect to last. 1 high-severity red flag sits above this conclusion and should be read first.

All 4 tripwires holding · see Key things to watch ↑