Daikaffil Chemicals India Limited

Basic Materials — Specialty Chemicals · BSE

₹45.99+₹0.94 (+2.09%)

DalalBaazaar Score

44 / 100

🟡 Moderate

Verdict

CAUTION

Risk

High

Driven by the company is currently loss-making, micro-cap size, which brings thin liquidity, falling profits.

In simple words: The company is currently losing money, but sales are shrinking. The direction of profits is 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 Daikaffil Chemicals India Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Daikaffil Chemicals India Limited engages in the manufacturing and trading of organic chemicals and intermediaries in India and internationally.

IndustrySpecialty Chemicals

SectorBasic Materials

Employees36

Annual revenue₹13 Cr

How does it make money?

Turns over ₹13 Cr a year. Of every ₹100 of sales, about ₹-17 reaches shareholders as profit, with ₹-14 left at the operating level before interest, tax and depreciation. Each of its 36 employees supports ₹37.1 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹37.1 lakh

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?Little sign of one

Returns on capital of -30.3% 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 ROE22.3%

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 +1995% while net margin moved -95% 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+1995%

Margin effect-95%

DalalBaazaar Score

44/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Return on equity is negative
✗ ROE has fallen by 15.5 points over the period

Quality vs. Valuation

Company Quality

44/ 100

Weak

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

Valuation

29/ 100

Expensive

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

Weak on business quality and not cheap enough to compensate.

vs. its own history

Not enough price and earnings history

vs. sector peers

Not enough peers with a usable P/E

vs. generic bands

N/A

No P/E — the company is lossmaking

EV/EBITDA

—

PEG

—

What's Good / What's Bad

🟢 What's Going Well2

Margins are improving
EBITDA margin is up from -240.8% to -14.1% over 3 years.
Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from -17.2% to -32.7% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from -16.7% to -30.3% — often a sign of competition or overexpansion.

Red Flags

2 items require attention · 2 high

🔴Thin interest coverageFinancial
Operating profit covers interest only -277.5x — little room if earnings dip.
🔴The company is lossmakingFinancial
Net profit of -₹2 Cr in the latest reported year.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from -240.8% to -14.1%. 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?

Returns on shareholder capital are falling
ROE has dropped from -17.2% to -32.7%. 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
2 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

1Revenue growth stays above 132% a year✓ 175.7% CAGR
Latest reported year was -73.4%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above -16%✓ -14.1%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Interest cover stays above 3x✗ -277.5x
How much operating profit can fall before interest stops being comfortably covered.
4Free cash flow remains positive✓ ₹0 Cr
Profit that never becomes cash eventually stops being profit.
5ROCE stays above 8%✗ -30.3%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

5 / 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
✓ 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

1 good · 4 neutral · 6 weak

Market Cap

₹28 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

Not meaningful

Loss-making

Earnings are negative, so a P/E multiple can't be read here

P/B Ratio

4.08x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹-5.53

Loss-making

Negative earnings per share — the business is losing money

ROE

-32.7%

Weak

Weak capital efficiency

ROCE

-30.3%

Weak

Low return on total capital employed

Debt/Equity

Not available

No data

Source didn't return this field

Revenue Growth (YoY)

-73.4%

Shrinking

Sales are contracting

Profit Growth (YoY)

-39.3%

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 generative

Generates cash even after funding its capex

More Metrics

Operating Margin

-67.1%

Weak

Thin margins leave little room for error

Net Margin

-31.6%

Weak

Very little revenue reaches the bottom line

Current Ratio

3.24

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

-0.84

Defensive

Steadier than the market

52W Range Position

18%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

46.3 / 45.6

Bullish alignment (short > long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

43.5

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹1 Cr	—	₹7 Cr	₹13 Cr	+175.7%
EBITDA	-₹2 Cr	-₹2 Cr	-₹1 Cr	-₹2 Cr	—
EBITDA Margin	-240.8%	—	-17.8%	-14.1%	—
PAT (Net Profit)	-₹2 Cr	-₹2 Cr	-₹2 Cr	-₹2 Cr	—
EPS	₹-3.56	₹-3.17	₹-2.65	₹-3.69	—
ROE	-17.2%	-18.1%	-18.0%	-32.7%	—
ROCE	-16.7%	-18.0%	-17.0%	-30.3%	—
Free Cash Flow	-₹8 Cr	₹6 Cr	-₹7 Cr	₹0 Cr	—

🟢 Revenue has grown at 175.7% a year over 3 years.

🟢 EBITDA Margin has risen from -240.8% to -14.1% over 3 years (+226.6 pts).

🔴 ROE has fallen from -17.2% to -32.7% over 3 years (-15.5 pts).

🔴 ROCE has fallen from -16.7% to -30.3% over 3 years (-13.7 pts).

🟢 Free Cash Flow has turned positive, from -₹8 Cr to ₹0 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹9 Cr

Total Liabilities

₹3 Cr

Total Debt

—

Cash & Equivalents

₹1 Cr

Operating Cash Flow

₹1 Cr

Capex

-₹0 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

69.5%

Corporate Actions

Ex-Dividend Date

18 Feb 2020

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 mixed5 general

Mikusu India raises Daikaffil Chemicals stake to 49.62%

scanx.trade, 17 Jun

Daikaffil Chemicals India Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 04 Sept

Sumitomo Chemical India posts steady annual profit growth amid regulatory and seasonal headwinds

Indiatimes, 12 Jun

Heranba Industries Board Approves ₹25 Crore Investment In Mikusu India

Sahi, 22 Aug

Daikaffil Chemicals passes all AGM resolutions with high promoter support

scanx.trade, 22 Sept

Visagar Financial Services reports standalone net loss of Rs 0.06 crore in the June 2026 quarter

Business Standard, 14 AugResults

🟡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 (-73.4%) 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.
1 metric couldn't be retrieved for this stock — this is more common for smaller or thinly-covered listings.

DalalBaazaar Thesis

StrongGrowth

MiddlingFinancial Health · Risk

WeakBusiness Quality · Profitability · Valuation

Points for each in the Score ↑

Weak on the fundamentals

Poor scores on business quality without a price low enough to compensate. There is no obvious argument for owning this over a stronger company at a similar valuation. 2 high-severity red flags sit above this conclusion and should be read first.

2 of 5 tripwires tripped — Interest cover stays above 3x; ROCE stays above 8% · see Key things to watch ↑