Choksi Asia Limited

Healthcare — Medical Devices · BSE

₹216.95+₹7.05 (+3.36%)

DalalBaazaar Score

62 / 100

🟢 Good

Verdict

NEUTRAL

Risk

Very High

Driven by high debt relative to equity, negative free cash flow, micro-cap size, which brings thin liquidity.

In simple words: Strong business and financial position, but sales are shrinking. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 8:28 pm

Understanding the Business

Company site ↗

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

What does this company do?

Choksi Asia Limited primarily engages in the manufacture and sale of photosensitized materials and other products for the healthcare industry in India.

IndustryMedical Devices

SectorHealthcare

Employees12

Annual revenue₹49 Cr

How does it make money?

Turns over ₹49 Cr a year. Of every ₹100 of sales, about ₹11 reaches shareholders as profit, with ₹17 left at the operating level before interest, tax and depreciation. Each of its 12 employees supports ₹4.11 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹4.11 Cr

Who are its competitors?

The closest listed comparisons in its industry are SUN PHARMACEUTICAL IND L, CIPLA LTD, DR. REDDY S LABORATORIES, APOLLO HOSPITALS ENTER. L. 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 18.4% 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 ROE14.5%

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 +6756% while net margin moved -116% 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+6756%

Margin effect-116%

DalalBaazaar Score

62/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of -0.27 — historically steadier than the index
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ High leverage magnifies any downturn in earnings
✗ Profits have swung sharply from year to year — earnings are hard to forecast
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

65/ 100

Good

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

Valuation

67/ 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

23.8x

2Y Median

28.4x

28 monthly readings · mean 28.6x · range 15.8x–43.8x

Sector Median

33.3x

median of 4 sector peers

🟢Current valuation is approximately 16% below its 2y median of 28.4x. 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 28% below the peer median of 33.3x.

vs. its own history

Fair

28.4x median over 28 months · -16%

vs. sector peers

Cheap

33.3x median of 4 peers · -28%

vs. generic bands

Fair

15x–35x

EV/EBITDA

14.6x

PEG

—

What's Good / What's Bad

🟢 What's Going Well3

Margins are improving
EBITDA margin is up from -207.5% to 16.6% over 3 years.
Return on equity is rising
ROE has improved from -3.1% to 12.7%.
Return on capital is rising
ROCE has improved from -9.6% to 18.4%.

🔴 What Needs Attention0

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

Red Flags

3 items require attention · 1 high · 2 watch

🔴High leverageFinancial
Debt/Equity of 4.56x — earnings must service borrowings before shareholders see anything.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹0 Cr in the latest year.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 46% 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 18.4% 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 -207.5% to 16.6%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Cheaper than its peers
It trades 28% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.

🔴 Bear CaseWhat could go wrong?

Leverage amplifies any setback
Debt/Equity of 4.56x. Interest is payable whether or not the business has a good year.
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 232% a year✓ 309.3% CAGR
Latest reported year was -22.5%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 15%✓ 16.6%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹0 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.2x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 15%✓ 18.4%
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

2 good · 5 neutral · 4 weak

Market Cap

₹124 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

23.8x

Fair

Fairly valued against the generic band

P/B Ratio

2.94x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹9.1

Profitable

Profitable on a per-share basis

ROE

12.7%

Moderate

Moderate capital efficiency

ROCE

18.4%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

4.56x

High

High leverage

Revenue Growth (YoY)

-22.5%

Shrinking

Sales are contracting

Profit Growth (YoY)

-10.1%

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

-₹0 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

14.0%

Average

Average margins

Net Margin

11.2%

Good

Strong bottom-line conversion

Current Ratio

6.67

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

-0.27

Defensive

Steadier than the market

52W Range Position

71%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

212.6 / 227.7

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

55.6

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹1 Cr	₹16 Cr	₹37 Cr	₹49 Cr	+309.3%
EBITDA	-₹1 Cr	₹2 Cr	₹5 Cr	₹8 Cr	—
EBITDA Margin	-207.5%	13.3%	14.5%	16.6%	—
PAT (Net Profit)	-₹0 Cr	₹1 Cr	₹3 Cr	₹5 Cr	—
EPS	₹-1.22	₹2.43	₹5.44	₹9.36	—
ROE	-3.1%	4.1%	8.4%	12.7%	—
ROCE	-9.6%	5.3%	12.8%	18.4%	—
Total Debt	—	₹4 Cr	₹5 Cr	₹2 Cr	—
Free Cash Flow	-₹3 Cr	₹3 Cr	-₹4 Cr	-₹0 Cr	—

🟢 Revenue has grown at 309.3% a year over 3 years.

🟢 EBITDA has turned positive, from -₹1 Cr to ₹8 Cr.

🟢 EBITDA Margin has risen from -207.5% to 16.6% over 3 years (+224.2 pts).

🟢 PAT (Net Profit) has turned positive, from -₹0 Cr to ₹5 Cr.

🟢 EPS has turned positive, from ₹-1.22 to ₹9.36.

🟢 ROE has risen from -3.1% to 12.7% over 3 years (+15.7 pts).

🟢 ROCE has risen from -9.6% to 18.4% over 3 years (+28.0 pts).

Balance Sheet & Cash Flow — FY2026

Total Assets

₹47 Cr

Total Liabilities

₹5 Cr

Cash & Equivalents

₹6 Cr

Operating Cash Flow

₹1 Cr

Capex

-₹1 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

79.3%

Corporate Actions

Ex-Dividend Date

16 Sept 2021

Peer Comparison

Company	P/E	ROE
SUN PHARMACEUTICAL IND L	34.9x	14.5%
CIPLA LTD	31.8x	9.8%
DR. REDDY S LABORATORIES	31.0x	8.8%
APOLLO HOSPITALS ENTER. L	54.3x	22.0%

Recent News

2 mixed4 general

Choksi Asia sets Sept 29 for 34th AGM with remote e-voting

scanx.trade, 29 Sept

Choksi Asia Ltd. Key Financial Ratios – Valuation, Profitability & More

Value Research, 30 Aug

Choksi Asia Ltd is Rated Hold by MarketsMOJO

MarketsMojo, 09 Oct

Choksi Asia Q1 FY27 Results: Revenue Rs 9 Cr, PAT Rs 0.96 Cr and Key Highlights

Univest, 12 AugResults

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

Choksi Asia Ltd. Financials – Balance Sheet, Profit & Loss, Cash Flow

Value Research, 30 Aug

Choksi Asia adopts FY26 results, reappoints Samir and Jay Choksi

scanx.trade, 29 SeptResults

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

Watch Items

Revenue growth is negative (-22.5%) on the latest reported period — check if this is one-off or a trend.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongBusiness Quality · Growth · Profitability

MiddlingFinancial Health · Valuation

WeakRisk

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 ↑