HRS Aluglaze Limited

Basic Materials — Aluminum · BSE

₹255.00−₹4.50 (−1.73%)

DalalBaazaar Score

71 / 100

🟢 Good

Verdict

REASONABLE

Risk

High

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, 6:07 pm

Mixed / neutral. No major red flags jump out, but nothing here screams "obviously cheap" either. This is a name that needs a peer comparison and a view on near-term earnings triggers before sizing a position.

Understanding the Business

Company site ↗

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

What does this company do?

HRS Aluglaze Limited engages in the design, manufacturing, supply, and installation of aluminum products and facade systems in Gujarat, Telangana, and Maharashtra.

IndustryAluminum

SectorBasic Materials

Annual revenue₹68 Cr

How does it make money?

Turns over ₹68 Cr a year. Of every ₹100 of sales, about ₹15 reaches shareholders as profit, with ₹27 left at the operating level before interest, tax and depreciation.

EBITDA margin26.7%

Net margin15.1%

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.

HINDALCO INDUSTRIES LTDP/E 12.3x · ROE 12.0%

VEDANTA LIMITEDP/E 10.4x · ROE 18.7%

TATA STEEL LIMITEDP/E 19.8x · ROE 10.8%

JSW STEEL LIMITEDP/E 12.0x · ROE 24.7%

What is its competitive advantage?Some evidence

ROCE of 16.0% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

ROCE16.0%

ROE21.4%

Peer median ROE18.7%

What has been driving growth?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved +199% while net margin moved +293% 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+199%

Margin effect+293%

DalalBaazaar Score

71/ 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

81/ 100

Excellent

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

Valuation

49/ 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

38.8x

1.0Y Median

93.7x

12 monthly readings · mean 88.0x · range 54.2x–99.7x

Sector Median

12.2x

median of 4 sector peers

🟢Current valuation is approximately 59% below its 1.0y median of 93.7x. 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 219% above the peer median of 12.2x.

vs. its own history

Cheap

93.7x median over 12 months · -59%

vs. sector peers

Expensive

12.2x median of 4 peers · +219%

vs. generic bands

Expensive

Above 35x

P/E (Trailing)

38.8x

P/B

6.52x

EV/EBITDA

29.4x

PEG

0.30

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well4

Margins are improving
EBITDA margin is up from 7.3% to 26.7% over 3 years.
Return on capital is rising
ROCE has improved from 6.3% to 16.0%.
Valuation below its historical average
At 38.8x the stock trades 59% below its own median of 93.7x.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention4

Debt is rising
Total debt is up 120% over 3 years — worth checking what it funded.
Free cash flow is negative
The business is not currently covering its capital spending from operations.
Receivables growing faster than sales
Receivables are up 516% against revenue growth of 199% — customers are taking longer to pay.
Inventory building faster than sales
Inventory is up 993% against revenue growth of 199% — stock may not be moving.

Red Flags

5 items require attention · 5 high

🔴Debt has risen sharplyFinancial
Total debt is up 120% over 3 years, from ₹18 Cr to ₹39 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 516% against revenue up 199% — sales are being booked faster than they are collected.
🔴Inventory building faster than salesFinancial
Inventory up 993% against revenue up 199% — stock may not be moving.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 7.3% to 26.7%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Priced below its own history
The stock trades 59% 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?

Sales are being booked faster than collected
Receivables are up 516% against revenue up 199%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
A premium to the sector to defend
It trades 219% above the peer median. That premium needs a reason that persists, or it closes.
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
5 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 33% a year✓ 44.1% CAGR
Latest reported year was 60.4%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 25%✓ 26.7%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA stays below 2x✗ 2.2x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
4Free cash flow remains positive✗ -₹36 Cr
Profit that never becomes cash eventually stops being profit.
5ROCE stays above 13%✓ 16.0%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

10 / 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

6 good · 3 neutral · 2 weak

Market Cap

₹492 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

38.8x

Fair

Fairly valued against the generic band

P/B Ratio

6.52x

Rich

Steep premium to book — needs high, durable returns to justify

EPS (TTM)

₹6.58

Profitable

Profitable on a per-share basis

ROE

21.4%

Strong

Strong capital efficiency

ROCE

16.0%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.52x

Low

Conservative leverage

Revenue Growth (YoY)

60.4%

Healthy

Healthy top-line growth

Profit Growth (YoY)

98.5%

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

-₹40 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

CMP

₹255

ROA

9.3%

Good

Assets are working hard

Operating Margin

20.7%

Good

Healthy core-business profitability

Net Margin

15.1%

Good

Strong bottom-line conversion

Current Ratio

1.82

Comfortable

Healthy short-term liquidity

52W Range Position

77%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

259.0 / 254.8

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

44.6

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹23 Cr	₹27 Cr	₹42 Cr	₹68 Cr	+44.1%
EBITDA	₹2 Cr	₹3 Cr	₹11 Cr	₹18 Cr	+122.2%
EBITDA Margin	7.3%	12.4%	25.1%	26.7%	—
PAT (Net Profit)	₹1 Cr	₹2 Cr	₹5 Cr	₹10 Cr	+127.4%
EPS	₹0.45	₹0.93	₹2.67	—	—
ROE	10.6%	17.9%	25.6%	13.5%	—
ROCE	6.3%	12.1%	20.2%	16.0%	—
Total Debt	₹18 Cr	₹24 Cr	₹39 Cr	₹39 Cr	+30.1%
Free Cash Flow	-₹16 Cr	-₹9 Cr	-₹17 Cr	-₹36 Cr	—

🟢 Revenue has grown at 44.1% a year over 3 years.

🟢 EBITDA has grown at 122.2% a year over 3 years.

🟢 EBITDA Margin has risen from 7.3% to 26.7% over 3 years (+19.4 pts).

🟢 PAT (Net Profit) has grown at 127.4% a year over 3 years.

🟢 ROE has risen from 10.6% to 13.5% over 3 years (+3.0 pts).

🟢 ROCE has risen from 6.3% to 16.0% over 3 years (+9.7 pts).

🔴 Total Debt has grown at 30.1% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹137 Cr

Total Liabilities

₹61 Cr

Total Debt

₹39 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

-₹11 Cr

Capex

-₹24 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

91.4%

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

6 general

HRS ALUGLAZE LIMITED Share Price - Live HRS Stock Price & Chart

Upstox, 09 Oct

Small-cap stock hits upper circuit despite weak trends on Dalal Street

Livemint, 09 Apr

HRS Aluglaze shares hit 5% upper circuit after listing at 31% premium over SME IPO price

Moneycontrol.com, 18 Dec

HRS Aluglaze schedules AGM for Sept 30; FY26 PAT doubles to ₹102.2 crore

scanx.trade, 07 Sept

IPO To Multibagger? HRS Aluglaze Gives Stellar 120% Returns Since Listing: Here's What Lies Next For Investors

Goodreturns, 10 Apr

HRS Aluglaze IPO Detailed Guide: GMP, Lot Size, Financials & Details

IndiaIPO, 11 Dec

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

🟢Business QualityStrong17.1/20

🟡Financial HealthAdequate12/20

🟢GrowthStrong18.5/20

🟢ProfitabilityStrong13.1/15

🟡ValuationFair7.9/15

🔴RiskHigh2.5/10

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

This thesis breaks if

✓Revenue growth stays above 33% a year44.1% CAGR
✓EBITDA margin holds above 25%26.7%
✗Debt / EBITDA stays below 2x2.2x
✗Free cash flow remains positive-₹36 Cr
✓ROCE stays above 13%16.0%