Indo Amines Limited

Basic Materials — Chemicals · NSE

₹143.20−₹3.26 (−2.23%)

DalalBaazaar Score

69 / 100

🟢 Good

Verdict

REASONABLE

Risk

Moderate

Driven by micro-cap size, which brings thin liquidity.

In simple words: Strong business and financial position, with modest growth. Nothing obvious stands out as stretched — the usual checks on business quality and management still apply.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:02 pm

Understanding the Business

Company site ↗

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

What does this company do?

Indo Amines Limited engages in the manufacture, distribution, and sale of fine, performance, and specialty chemicals in India and internationally.

IndustryChemicals

SectorBasic Materials

Employees619

Annual revenue₹1,154 Cr

How does it make money?

Turns over ₹1,154 Cr a year. Of every ₹100 of sales, about ₹7 reaches shareholders as profit, with ₹12 left at the operating level before interest, tax and depreciation. Each of its 619 employees supports ₹1.86 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹1.86 Cr

Who are its competitors?

The closest listed comparisons in its industry are 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?The numbers suggest a real one

ROCE has stayed above 15% in every year available and stands at 26.1%. Returns that high normally get competed away; when they persist, something is protecting them, and its ROE of 19.8% against a peer median of 15.4% is consistent with that. What that something is — brand, scale, switching costs, regulation — the accounts cannot tell you.

Peer median ROE15.4%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +23% while net margin moved +55% 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+23%

Margin effect+55%

DalalBaazaar Score

69/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of 0.76 — historically steadier than the index
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✓ Profits have been consistent from year to year

Quality vs. Valuation

Company Quality

68/ 100

Good

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

Valuation

81/ 100

Cheap

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

A good business currently available at an undemanding price — the combination this framework is built to look for.

Historical Valuation

Current P/E

13.0x

3Y Median

19.7x

40 monthly readings · mean 20.9x · range 10.9x–40.0x

Sector Median

33.8x

median of 3 sector peers

🟢Current valuation is approximately 34% below its 3y median of 19.7x. 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 62% below the peer median of 33.8x.

vs. its own history

Cheap

19.7x median over 40 months · -34%

vs. sector peers

Cheap

33.8x median of 3 peers · -62%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

9.3x

PEG

0.54

What's Good / What's Bad

🟢 What's Going Well4

Margins are improving
EBITDA margin is up from 9.5% to 12.5% over 3 years.
Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.
High return on capital employed
ROCE of 26.1% is the mark of a business that converts capital into profit efficiently.
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

2 items require attention · 2 watch

🟡Debt is increasingFinancial
Total debt is up 34% over 3 years.
🟡Receivables growing faster than salesFinancial
Receivables up 50% against revenue up 23% — sales are being booked faster than they are collected.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 26.1% 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 9.5% to 12.5%. 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 34% 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.
Cheaper than its peers
It trades 62% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
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 50% against revenue up 23%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
Growth barely outpaces inflation
Revenue compounding at 7.0% 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.

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

1EBITDA margin holds above 10%✓ 12.5%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA stays below 2x✗ 2.2x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
3Revenue growth stays above 5% a year✓ 7.0% CAGR
Latest reported year was 30.3%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
4Free cash flow remains positive✓ ₹0 Cr
Profit that never becomes cash eventually stops being profit.
5ROCE stays above 23%✓ 26.1%
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 · 5 neutral · 0 weak

Market Cap

₹1,039 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

13.0x

Cheap

Cheap against the generic band

P/B Ratio

2.74x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹11.03

Profitable

Profitable on a per-share basis

ROE

19.8%

Strong

Strong capital efficiency

ROCE

26.1%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.79x

Moderate

Moderate leverage

Revenue Growth (YoY)

30.3%

Healthy

Healthy top-line growth

Profit Growth (YoY)

6.1%

Modest

Slow profit growth

Dividend Yield

0.35%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

₹0 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

12.4%

Average

Average margins

Net Margin

6.5%

Average

Average bottom-line conversion

Current Ratio

1.30

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.76

Defensive

Steadier than the market

52W Range Position

71%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

144.5 / 133.0

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

55.1

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹941 Cr	₹943 Cr	₹1,073 Cr	₹1,154 Cr	+7.0%
EBITDA	₹89 Cr	₹92 Cr	₹116 Cr	₹144 Cr	+17.3%
EBITDA Margin	9.5%	9.7%	10.8%	12.5%	—
PAT (Net Profit)	₹41 Cr	₹43 Cr	₹55 Cr	₹78 Cr	+24.0%
EPS	₹5.78	₹5.92	₹7.7	₹10.79	+23.1%
ROE	18.1%	16.2%	17.4%	19.8%	—
ROCE	24.9%	23.7%	24.0%	26.1%	—
Total Debt	₹232 Cr	₹217 Cr	₹284 Cr	₹311 Cr	+10.2%
Free Cash Flow	-₹11 Cr	₹39 Cr	-₹48 Cr	₹0 Cr	—

🟢 Revenue has grown at 7.0% a year over 3 years.

🟢 EBITDA has grown at 17.3% a year over 3 years.

🟢 EBITDA Margin has risen from 9.5% to 12.5% over 3 years (+3.0 pts).

🟢 PAT (Net Profit) has grown at 24.0% a year over 3 years.

🟢 EPS has grown at 23.1% a year over 3 years.

🟢 ROE has risen from 18.1% to 19.8% over 3 years (+1.6 pts).

🟢 ROCE has risen from 24.9% to 26.1% over 3 years (+1.3 pts).

🔴 Total Debt has grown at 10.2% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹11 Cr to ₹0 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹897 Cr

Total Liabilities

₹502 Cr

Cash & Equivalents

₹7 Cr

Operating Cash Flow

₹79 Cr

Capex

-₹78 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

78.7%

Corporate Actions

Dividend Rate

₹0.5

Ex-Dividend Date

17 Sept 2026

Peer Comparison

Company	P/E	ROE
PIDILITE INDUSTRIES LTD	57.8x	24.4%
SRF LTD	33.8x	15.4%
UPL LIMITED	21.5x	6.1%

Recent News

1 positive2 mixed3 general

We Ran A Stock Scan For Earnings Growth And Indo Amines (NSE:INDOAMIN) Passed With Ease

Simply Wall Street, 24 SeptResults

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

Indo Amines FY26 net profit rises 30%; board recommends dividend

scanx.trade, 20 MayCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

Indo Amines Stock Reaches New Price Territory

Kalkine India, 06 Oct

Indo Amines vs Nifty 50: Share Price Performance Compared

Univest, 29 Sept

Specialty chemicals: Alkyl, Balaji Amines zoom up to 20% on huge volume

Business Standard, 06 Oct

Indo Amines Share Price Target 2026: Rs 155 Analyst Forecast

Univest, 11 JunAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Watch Items

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

DalalBaazaar Thesis

StrongFinancial Health · Growth · Profitability · Valuation

MiddlingBusiness Quality · Risk

Points for each in the Score ↑

Attractive on both counts

A good business currently available at an undemanding price — the combination this framework exists to look for. The work left is qualitative: whether the advantage the numbers imply is one you can identify and expect to last.

1 of 5 tripwires tripped — Debt / EBITDA stays below 2x · see Key things to watch ↑