Felix Industries Limited

Sector n/a · NSE

₹280.80+₹5.20 (+1.89%)

DalalBaazaar Score

69 / 100

🟢 Good

Verdict

REASONABLE

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, 8:27 pm

Understanding the Business

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

How does it make money?

Turns over ₹102 Cr a year. Of every ₹100 of sales, about ₹18 reaches shareholders as profit, with ₹31 left at the operating level before interest, tax and depreciation.

What is its competitive advantage?Some evidence

ROCE of 16.4% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

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 +427% while net margin moved +195% 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+427%

Margin effect+195%

DalalBaazaar Score

69/ 100

Good

Weighted across six categories. Every point is explained below.

✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ 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

79/ 100

Good

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

Valuation

60/ 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.

vs. its own history

Not enough price and earnings history

vs. sector peers

Not enough peers with a usable P/E

vs. generic bands

No P/E available

EV/EBITDA

12.8x

PEG

—

What's Good / What's Bad

🟢 What's Going Well5

Margins are improving
EBITDA margin is up from 11.0% to 31.1% over 3 years.
Return on equity is rising
ROE has improved from 7.2% to 12.0%.
Return on capital is rising
ROCE has improved from 10.4% to 16.4%.
Very low debt
Debt/Equity of 0.22x leaves the balance sheet with plenty of headroom.
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

5 items require attention · 4 high · 1 watch

🔴Debt has risen sharplyFinancial
Total debt is up 663% over 3 years, from ₹4 Cr to ₹34 Cr.
🔴Free cash flow negative for 4 yearsFinancial
The business has not covered its capital spending from operations for several years running, which has to be funded externally.
🔴Profit up while operating cash flow fallsFinancial
Reported profit rose but cash generated by operations declined — worth checking whether earnings are being supported by non-cash items or working capital.
🔴Receivables growing faster than salesFinancial
Receivables up 487% against revenue up 427% — sales are being booked faster than they are collected.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 168% over 3 years — each existing share owns a smaller slice of the company.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 11.0% to 31.1%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
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 487% against revenue up 427%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
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.
Several serious flags at once
4 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 56% a year✓ 74.1% CAGR
Latest reported year was 177.6%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 29%✓ 31.1%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹51 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 1.1x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 13%✓ 16.4%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

7 / 9 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
✓ Short-term technical trend isn't bearish

Price history

Quick Metrics

5 good · 5 neutral · 1 weak

Market Cap

₹384 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

Not available

No data

Source didn't return this field

P/B Ratio

Not available

No data

Source didn't return this field

EPS (TTM)

₹11.51

Profitable

Profitable on a per-share basis

ROE

12.0%

Moderate

Moderate capital efficiency

ROCE

16.4%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.22x

Low

Conservative leverage

Revenue Growth (YoY)

177.6%

Healthy

Healthy top-line growth

Profit Growth (YoY)

99.5%

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

-₹51 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Gross Margin

52.7%

Proxy

Operating margin unavailable — showing gross margin instead

Net Margin

17.8%

Good

Strong bottom-line conversion

Current Ratio

2.08

Comfortable

Healthy short-term liquidity

Technical Snapshot

SMA 20 / SMA 50

196.2 / 194.1

Bullish alignment (short > long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

32.1

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹19 Cr	₹34 Cr	₹37 Cr	₹102 Cr	+74.1%
EBITDA	₹2 Cr	₹7 Cr	₹14 Cr	₹32 Cr	+146.1%
EBITDA Margin	11.0%	22.0%	37.0%	31.1%	—
PAT (Net Profit)	₹1 Cr	₹5 Cr	₹9 Cr	₹18 Cr	+149.5%
EPS	₹2.3	₹5.77	₹6.67	₹11.51	+71.0%
ROE	7.2%	7.6%	10.2%	12.0%	—
ROCE	10.4%	10.5%	12.1%	16.4%	—
Total Debt	₹4 Cr	₹3 Cr	₹18 Cr	₹34 Cr	+96.9%
Free Cash Flow	-₹7 Cr	-₹39 Cr	-₹38 Cr	-₹51 Cr	—

🟢 Revenue has grown at 74.1% a year over 3 years.

🟢 EBITDA has grown at 146.1% a year over 3 years.

🟢 EBITDA Margin has risen from 11.0% to 31.1% over 3 years (+20.1 pts).

🟢 PAT (Net Profit) has grown at 149.5% a year over 3 years.

🟢 EPS has grown at 71.0% a year over 3 years.

🟢 ROE has risen from 7.2% to 12.0% over 3 years (+4.8 pts).

🟢 ROCE has risen from 10.4% to 16.4% over 3 years (+6.1 pts).

🔴 Total Debt has grown at 96.9% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹245 Cr

Total Liabilities

₹83 Cr

Cash & Equivalents

₹10 Cr

Operating Cash Flow

-₹37 Cr

Capex

-₹15 Cr

Recent News

1 mixed5 general

There Are Some Holes In Felix Industries' (NSE:FELIX) Solid Earnings Release

Simply Wall Street, 08 JunResults

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

Felix Industries seeks migration to NSE main board

scanx.trade, 04 Oct

Low PE stock Felix Industries jumps over 3% despite muted trends on Dalal Street

Livemint, 18 Aug

Felix Industries Ltd. Peer Comparison – Compare with Others

Value Research, 30 Aug

FELIX INDUSTRIES LTD. Share Price

Upstox, 05 May

Felix Industries Ltd

Equitypandit, 15 Jan

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.
Sector/industry classification unavailable — verify manually for peer comparison.
2 metrics couldn't be retrieved for this stock — this is more common for smaller or thinly-covered listings.

DalalBaazaar Thesis

StrongBusiness Quality · Financial Health · Growth · Profitability

MiddlingValuation

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. 4 high-severity red flags sit above this conclusion and should be read first.

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