India Homes Limited

Basic Materials — Steel · BSE

₹26.83−₹0.17 (−0.63%)

DalalBaazaar Score

67 / 100

🟢 Good

Verdict

NEUTRAL

Risk

Very High

Driven by high debt relative to equity, short-term liabilities exceed short-term assets, micro-cap size, which brings thin liquidity.

In simple words: Strong business and financial position, with both sales and profits growing well. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:01 pm

Understanding the Business

Company site ↗

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

What does this company do?

India Homes Limited engages in the manufacture and trading of stainless-steel and allied products primarily in India.

IndustrySteel

SectorBasic Materials

Employees5

Annual revenue₹25 Cr

How does it make money?

Turns over ₹25 Cr a year. Of every ₹100 of sales, about ₹76 reaches shareholders as profit, with ₹95 left at the operating level before interest, tax and depreciation. Each of its 5 employees supports ₹4.90 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹4.90 Cr

Who are its competitors?

The closest listed comparisons in its industry are TATA STEEL LIMITED, JSW STEEL LIMITED, JINDAL STEEL LIMITED, STEEL AUTHORITY OF INDIA. 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 22.4% 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 ROE10.8%

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 +421% while net margin moved -110% 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+421%

Margin effect-110%

DalalBaazaar Score

67/ 100

Good

Weighted across six categories. Every point is explained below.

✗ P/E of 45.5x is demanding — it needs sustained high growth to justify
✗ P/B of 23.89x is a steep premium to book

Quality vs. Valuation

Company Quality

81/ 100

Excellent

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

Valuation

24/ 100

Expensive

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

A good business, but the price already reflects that. The quality is real; the question is whether you are overpaying for it today.

Historical Valuation

Current P/E

45.5x

Sector Median

18.2x

median of 4 sector peers

⚠️Against its sector it trades 150% above the peer median of 18.2x.

vs. its own history

Not enough price and earnings history

vs. sector peers

Expensive

18.2x median of 4 peers · +150%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

49.6x

PEG

—

What's Good / What's Bad

🟢 What's Going Well5

Margins are improving
EBITDA margin is up from -354.0% to 95.3% over 3 years.
Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.
Return on equity is rising
ROE has improved from -74.1% to 41.4%.
Return on capital is rising
ROCE has improved from -38.3% to 22.4%.
High return on capital employed
ROCE of 22.4% is the mark of a business that converts capital into profit efficiently.

🔴 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 3.50x — earnings must service borrowings before shareholders see anything.
🟡Debt is increasingFinancial
Total debt is up 36% over 3 years.
🟡Short-term liquidity is tightFinancial
Current ratio of 0.54 — near-term obligations exceed near-term assets.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 22.4% 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 -354.0% to 95.3%. 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?

The debt load needs earnings to hold up
Debt is 3.9x 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 150% 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.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 55% a year✓ 73.3% CAGR
Latest reported year was 1152.7%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 93%✓ 95.3%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA falls below 3x✗ 3.9x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
4Free cash flow remains positive✓ ₹13 Cr
Profit that never becomes cash eventually stops being profit.
5ROCE stays above 19%✓ 22.4%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

8 / 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 · 2 neutral · 3 weak

Market Cap

₹1,068 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

45.5x

Expensive

Expensive — verify against sector peers

P/B Ratio

23.89x

Rich

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

EPS (TTM)

₹0.59

Profitable

Profitable on a per-share basis

ROE

41.4%

Strong

Strong capital efficiency

ROCE

22.4%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

3.50x

High

High leverage

Revenue Growth (YoY)

1152.7%

Healthy

Healthy top-line growth

Profit Growth (YoY)

239.3%

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

₹13 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

-709.3%

Weak

Thin margins leave little room for error

Net Margin

96.3%

Good

Strong bottom-line conversion

Current Ratio

0.54

Tight

Tight short-term liquidity

Beta (vs Nifty)

0.97

Market-like

Moves roughly in line with the market

52W Range Position

78%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

27.4 / 26.7

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

50.7

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹5 Cr	₹1 Cr	₹0 Cr	₹25 Cr	+73.3%
EBITDA	-₹17 Cr	₹1 Cr	-₹7 Cr	₹23 Cr	—
EBITDA Margin	-354.0%	61.4%	-91192.0%	95.3%	—
PAT (Net Profit)	-₹36 Cr	-₹12 Cr	-₹13 Cr	₹19 Cr	—
EPS	₹-0.9	₹-0.29	₹-0.34	₹0.47	—
ROE	-74.1%	-29.2%	-50.8%	41.4%	—
ROCE	-38.3%	-2.0%	-11.5%	22.4%	—
Total Debt	₹67 Cr	₹93 Cr	₹102 Cr	₹91 Cr	+10.7%
Free Cash Flow	-₹1 Cr	-₹22 Cr	-₹6 Cr	₹13 Cr	—

🟢 Revenue has grown at 73.3% a year over 3 years.

🟢 EBITDA has turned positive, from -₹17 Cr to ₹23 Cr.

🟢 EBITDA Margin has risen from -354.0% to 95.3% over 3 years (+449.3 pts).

🟢 PAT (Net Profit) has turned positive, from -₹36 Cr to ₹19 Cr.

🟢 EPS has turned positive, from ₹-0.9 to ₹0.47.

🟢 ROE has risen from -74.1% to 41.4% over 3 years (+115.5 pts).

🟢 ROCE has risen from -38.3% to 22.4% over 3 years (+60.7 pts).

🔴 Total Debt has grown at 10.7% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹1 Cr to ₹13 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹397 Cr

Total Liabilities

₹352 Cr

Cash & Equivalents

₹1 Cr

Operating Cash Flow

₹13 Cr

Capex

—

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

66.3%

Corporate Actions

Ex-Dividend Date

31 Aug 1998

Peer Comparison

Company	P/E	ROE
TATA STEEL LIMITED	19.8x	10.8%
JSW STEEL LIMITED	12.0x	24.7%
JINDAL STEEL LIMITED	39.1x	5.3%
STEEL AUTHORITY OF INDIA	16.5x	7.1%

Recent News

1 mixed5 general

India Steel Works Share Price news: price action review

Univest, 05 Oct

Can Fin Homes share: 21% YTD fall! Will stock rebound? Mirae Asset Sharekhan answers | Target price, rating, rationale

Livemint, 15 OctPrice 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.

India Homes appoints CGCA & Associates as statutory auditors for one year

scanx.trade, 14 Oct

India Homes Limited Share Price - Live INDIAHOMES Stock Price & Chart

Upstox, 05 May

Can Fin Homes Stock Drops—What’s Really Driving It?

Kalkine India, 20 May

Lloyds Enterprises buys additional 1.8% stake in India Homes

Moneycontrol.com, 01 Feb

Watch Items

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

DalalBaazaar Thesis

StrongBusiness Quality · Growth · Profitability

MiddlingFinancial Health

WeakValuation · Risk

Points for each in the Score ↑

Good business, demanding price

The quality is real and the price already reflects it. Buying here is a bet that the business keeps compounding for long enough to grow into the multiple — which good businesses often do, but it removes the margin for error that a lower price would have given you. 1 high-severity red flag sits above this conclusion and should be read first.

1 of 5 tripwires tripped — Debt / EBITDA falls below 3x · see Key things to watch ↑