Goyal Aluminiums Limited

Basic Materials — Aluminum · NSE

₹5.88+₹0.02 (+0.34%)

DalalBaazaar Score

52 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

Moderate

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

In simple words: Reasonable but unspectacular business quality, with modest growth. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:49 pm

Understanding the Business

Company site ↗

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

What does this company do?

Goyal Aluminiums Limited engages in the trading of aluminium and other metals in India. It offers aluminum coils, aluminum section, aluminum sheet, stainless steel, rubber bidding, aluminum giril, and other aluminum parts products.

IndustryAluminum

SectorBasic Materials

Employees5

Annual revenue₹76 Cr

How does it make money?

Turns over ₹76 Cr a year. Of every ₹100 of sales, about ₹4 reaches shareholders as profit, with ₹4 left at the operating level before interest, tax and depreciation. Each of its 5 employees supports ₹15.11 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹15.11 Cr

Who are its competitors?

The closest listed comparisons in its industry are HINDALCO INDUSTRIES LTD, VEDANTA LIMITED, TATA STEEL LIMITED, JSW STEEL 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 9.2% 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 ROE18.7%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +14% while net margin moved +24% 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+14%

Margin effect+24%

DalalBaazaar Score

52/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ ROCE of 9.2% is below 10% — capital is not working hard
✗ ROCE has fallen by 9.0 points — returns are eroding
✗ EBITDA margin of 4.2% is thin — little cushion if costs rise
✗ Net margin of 4.5% is slim
• Revenue has compounded at 4.6% a year, which is the base these returns are earned on

Quality vs. Valuation

Company Quality

48/ 100

Average

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

Valuation

53/ 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

17.8x

3Y Median

46.5x

40 monthly readings · mean 49.1x · range 26.6x–67.3x

Sector Median

12.2x

median of 4 sector peers

🟢Current valuation is approximately 62% below its 3y median of 46.5x. 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 47% above the peer median of 12.2x.

vs. its own history

Cheap

46.5x median over 40 months · -62%

vs. sector peers

Expensive

12.2x median of 4 peers · +47%

vs. generic bands

Fair

15x–35x

EV/EBITDA

30.1x

PEG

1.43

What's Good / What's Bad

🟢 What's Going Well1

Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention1

Return on capital is falling
ROCE has declined from 18.2% to 9.2% — often a sign of competition or overexpansion.

Red Flags

4 items require attention · 3 high · 1 watch

🔴Debt has risen sharplyFinancial
Total debt is up 685% over 3 years, from ₹1 Cr to ₹11 Cr.
🔴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.
🔴Inventory building faster than salesFinancial
Inventory up 219% against revenue up 14% — stock may not be moving.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹12 Cr in the latest year.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Priced below its own history
The stock trades 62% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
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?

The debt load needs earnings to hold up
Debt is 3.5x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
A premium to the sector to defend
It trades 47% above the peer median. That premium needs a reason that persists, or it closes.
Growth barely outpaces inflation
Revenue compounding at 4.6% a year is close to the rate prices rise, so the business is gaining little ground in real terms. That leaves the share price dependent on a re-rating rather than on earnings growth.
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
3 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

1EBITDA margin holds above 2%✓ 4.2%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA falls below 3x✗ 3.5x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
3Free cash flow remains positive✗ -₹12 Cr
Profit that never becomes cash eventually stops being profit.
4Revenue growth stays above 4% a year✓ 4.6% CAGR
Latest reported year was 9.1%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
5ROCE stays above 8%✓ 9.2%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

6 / 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

3 good · 7 neutral · 1 weak

Market Cap

₹84 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

17.8x

Fair

Fairly valued against the generic band

P/B Ratio

3.34x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹0.33

Profitable

Profitable on a per-share basis

ROE

12.2%

Moderate

Moderate capital efficiency

ROCE

9.2%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.42x

Low

Conservative leverage

Revenue Growth (YoY)

9.1%

Modest

Modest growth

Profit Growth (YoY)

50.0%

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

-₹12 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

2.9%

Weak

Thin margins leave little room for error

Net Margin

4.5%

Average

Average bottom-line conversion

Current Ratio

1.87

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.43

Defensive

Steadier than the market

52W Range Position

10%

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

5.9 / 6.1

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

49.1

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹66 Cr	₹68 Cr	₹77 Cr	₹76 Cr	+4.6%
EBITDA	₹4 Cr	₹4 Cr	₹3 Cr	₹3 Cr	-3.5%
EBITDA Margin	5.3%	5.2%	3.3%	4.2%	—
PAT (Net Profit)	₹2 Cr	₹3 Cr	₹2 Cr	₹3 Cr	+12.4%
EPS	₹0.15	₹0.18	₹0.16	₹0.22	+13.6%
ROE	12.4%	12.8%	10.3%	12.2%	—
ROCE	18.2%	16.3%	10.4%	9.2%	—
Total Debt	₹1 Cr	₹2 Cr	₹0 Cr	₹11 Cr	+98.7%
Free Cash Flow	₹5 Cr	₹0 Cr	₹2 Cr	-₹12 Cr	—

🟢 Revenue has grown at 4.6% a year over 3 years.

🔴 EBITDA has shrunk at 3.5% a year over 3 years.

🔴 EBITDA Margin has fallen from 5.3% to 4.2% over 3 years (-1.1 pts).

🟢 PAT (Net Profit) has grown at 12.4% a year over 3 years.

🟢 EPS has grown at 13.6% a year over 3 years.

🟡 ROE has held roughly flat at 12.2% over 3 years.

🔴 ROCE has fallen from 18.2% to 9.2% over 3 years (-9.0 pts).

🔴 Total Debt has grown at 98.7% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹5 Cr to -₹12 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹46 Cr

Total Liabilities

₹20 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

-₹1 Cr

Capex

-₹11 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

69.9%

Peer Comparison

Company	P/E	ROE
HINDALCO INDUSTRIES LTD	12.3x	12.0%
VEDANTA LIMITED	10.4x	18.7%
TATA STEEL LIMITED	19.8x	10.8%
JSW STEEL LIMITED	12.0x	24.7%

Recent News

3 mixed3 general

Goyal Aluminiums Share Price: Good Buy After Q1 FY27 Results?

Univest, 11 SeptResults

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

What Goyal Aluminiums Limited's (NSE:GOYALALUM) 32% Share Price Gain Is Not Telling You

Simply Wall Street, 06 JanPrice 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.

Goyal Aluminiums GOYALALUM Trading Window Closure October 2026

Kalkine India, 25 Sept

Goyal Aluminiums Ltd. Key Financial Ratios – Valuation, Profitability & More

Value Research, 29 Aug

Why Is Goyal Aluminiums Share Price Falling Key Reasons 2026

Univest, 18 JunPrice 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.

Compare with VINTRON INFORM

Equitymaster, 26 Sept

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.

DalalBaazaar Thesis

StrongFinancial Health · Valuation

MiddlingGrowth · Risk

WeakBusiness Quality · Profitability

Points for each in the Score ↑

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you. 3 high-severity red flags sit above this conclusion and should be read first.

2 of 5 tripwires tripped — Debt / EBITDA falls below 3x; Free cash flow remains positive · see Key things to watch ↑