Indo Borax & Chemicals Limited

Basic Materials — Chemicals · NSE

₹474.90−₹2.00 (−0.42%)

DalalBaazaar Score

54 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

Moderate

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

In simple words: Strong business and financial position, with both sales and profits growing well. Nothing on this snapshot stands out as an immediate concern — the usual checks on business quality and management still apply.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:45 pm

Understanding the Business

Company site ↗

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

What does this company do?

Indo Borax & Chemicals Limited manufactures and sells boron-based products in India.

IndustryChemicals

SectorBasic Materials

Employees111

Annual revenue₹215 Cr

How does it make money?

Turns over ₹215 Cr a year. Of every ₹100 of sales, about ₹23 reaches shareholders as profit, with ₹27 left at the operating level before interest, tax and depreciation. Each of its 111 employees supports ₹1.94 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹1.94 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?Some evidence

ROCE of 17.1% 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 ROE15.4%

What has been driving growth?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved -4% while net margin moved +4% 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-4%

Margin effect+4%

DalalBaazaar Score

54/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 1.4% a year
✗ Profit has declined at 0.3% a year

Quality vs. Valuation

Company Quality

55/ 100

Average

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

Valuation

51/ 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

27.0x

3Y Median

16.7x

40 monthly readings · mean 17.6x · range 9.8x–32.4x

Sector Median

33.8x

median of 3 sector peers

⚠️Current valuation is approximately 62% above its 3y median of 16.7x. Paying more than usual needs a reason — faster growth, a better balance sheet, or a re-rating you believe in.

🟢Against its sector it trades 20% below the peer median of 33.8x.

vs. its own history

Expensive

16.7x median over 40 months · +62%

vs. sector peers

Fair

33.8x median of 3 peers · -20%

vs. generic bands

Fair

15x–35x

EV/EBITDA

25.7x

PEG

0.64

What's Good / What's Bad

🟢 What's Going Well2

Cash generation is improving
Free cash flow is up 57% over 3 years.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 19.9% to 13.0% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 26.8% to 17.1% — often a sign of competition or overexpansion.

Red Flags

2 items require attention · 1 high · 1 watch

🔴Debt has risen sharplyFinancial
Total debt is up 4273% over 3 years, from ₹0 Cr to ₹1 Cr.
🟡Margins are compressingFinancial
EBITDA margin is down 2.9 points over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Self-funding with balance-sheet headroom
Positive free cash flow of ₹87 Cr alongside low debt means growth, buybacks or dividends need no outside money — and a downturn can be absorbed rather than refinanced.
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?

Margins are being competed away
EBITDA margin has fallen from 30.1% to 27.3%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
The price already assumes success
The stock trades 62% above its own median multiple. At this level the business has to deliver just to stand still, and a stumble is repriced twice — lower earnings on a lower multiple.
Returns on shareholder capital are falling
ROE has dropped from 19.9% to 13.0%. Each rupee of equity earns less than it did, so profit growth increasingly depends on raising more capital rather than on the existing base working harder.
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 25%✓ 27.3%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Free cash flow remains positive✓ ₹87 Cr
Profit that never becomes cash eventually stops being profit.
3Debt / EBITDA stays below 2x✓ 0.0x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
4ROCE stays above 14%✓ 17.1%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.
5Valuation vs its own median of 16.7x✗ 27.0x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

9 / 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

7 good · 4 neutral · 0 weak

Market Cap

₹1,524 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

27.0x

Fair

Fairly valued against the generic band

P/B Ratio

3.94x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹17.56

Profitable

Profitable on a per-share basis

ROE

13.9%

Moderate

Moderate capital efficiency

ROCE

17.1%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.37x

Low

Conservative leverage

Revenue Growth (YoY)

25.2%

Healthy

Healthy top-line growth

Profit Growth (YoY)

42.0%

Healthy

Profits growing at a healthy clip

Dividend Yield

2.11%

Healthy

Meaningful cash return while you hold the stock

Free Cash Flow

₹18 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

ROA

7.4%

Average

Average asset productivity

Operating Margin

26.2%

Good

Healthy core-business profitability

Net Margin

23.3%

Good

Strong bottom-line conversion

Current Ratio

20.85

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.88

Market-like

Moves roughly in line with the market

52W Range Position

78%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

473.7 / 474.0

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

57.4

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹225 Cr	₹191 Cr	₹175 Cr	₹215 Cr	-1.4%
EBITDA	₹68 Cr	₹55 Cr	₹60 Cr	₹59 Cr	-4.7%
EBITDA Margin	30.1%	28.5%	34.4%	27.3%	—
PAT (Net Profit)	₹51 Cr	₹39 Cr	₹43 Cr	₹50 Cr	-0.3%
EPS	₹15.8	₹12.15	₹13.25	₹15.67	-0.3%
ROE	19.9%	13.3%	12.7%	13.0%	—
ROCE	26.8%	17.6%	17.4%	17.1%	—
Total Debt	₹0 Cr	₹0 Cr	₹0 Cr	₹1 Cr	+252.3%
Free Cash Flow	₹55 Cr	₹65 Cr	-₹111 Cr	₹87 Cr	+16.3%

🟡 Revenue has been broadly flat over 3 years (-1.4% a year).

🔴 EBITDA has shrunk at 4.7% a year over 3 years.

🔴 EBITDA Margin has fallen from 30.1% to 27.3% over 3 years (-2.9 pts).

🟡 PAT (Net Profit) has been broadly flat over 3 years (-0.3% a year).

🟡 EPS has been broadly flat over 3 years (-0.3% a year).

🔴 ROE has fallen from 19.9% to 13.0% over 3 years (-6.9 pts).

🔴 ROCE has fallen from 26.8% to 17.1% over 3 years (-9.7 pts).

🔴 Total Debt has grown at 252.3% a year over 3 years.

🟢 Free Cash Flow has grown at 16.3% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹405 Cr

Total Liabilities

₹18 Cr

Cash & Equivalents

₹14 Cr

Operating Cash Flow

₹87 Cr

Capex

-₹0 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

47.4%

Corporate Actions

Dividend Rate

₹10

Ex-Dividend Date

21 Jul 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

2 positive1 mixed3 general

Indo Borax & Chemicals Share Price Target 2027, 2028 and 2030: Long Term Analyst Forecast

Univest, 13 AugAnalyst view

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

Indo Borax & Chemicals Acquires 64.26% Stake In Kronox Lab Sciences

Sahi, 29 Sept

Indo Borax fixes record date for dividend on July 21, 2026

scanx.trade, 30 JunCapital return

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

Indo Borax & Chemicals Ltd leads losers in 'B' group

Business Standard, 21 Jul

Indo Borax: Kronox Lab பங்குகளை அடமானம் வைக்க அனுமதி கோரும் நிறுவனம்!

Whalesbook, 12 Oct

Highest-Ever Dividend: This Debt-Free Multibagger Chemical Company Announces Rs 40 Per Share Dividend; Shares Jump Over 3%

Dalal Street Investment Journal, 17 JulCapital return

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

Watch Items

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

DalalBaazaar Thesis

StrongBusiness Quality · Financial Health

MiddlingProfitability · Valuation · Risk

WeakGrowth

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. 1 high-severity red flag sits above this conclusion and should be read first.

1 of 5 tripwires tripped — Valuation vs its own median of 16.7x · see Key things to watch ↑