Indo Euro Indchem Limited

Industrials — Conglomerates · BSE

₹8.78₹0.00 (0.00%)

DalalBaazaar Score

55 / 100

🟡 Moderate

Verdict

CAUTION

Risk

High

Driven by short-term liabilities exceed short-term assets, micro-cap size, which brings thin liquidity, falling profits.

In simple words: The business is earning a fairly low return on the money invested in it, though profits are falling even as sales grow. Short-term liquidity is 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 Indo Euro Indchem Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Indo Euro Indchem Limited trades in specialty, organic, and inorganic chemicals in India.

IndustryConglomerates

SectorIndustrials

Employees8

Annual revenue₹14 Cr

How does it make money?

Turns over ₹14 Cr a year. Of every ₹100 of sales, about ₹2 reaches shareholders as profit, with ₹4 left at the operating level before interest, tax and depreciation. Each of its 8 employees supports ₹1.72 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹1.72 Cr

Who are its competitors?

The closest listed comparisons in its industry are LARSEN & TOUBRO LTD., SIEMENS LTD, ABB INDIA 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 3.8% 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 ROE15.2%

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 +36% while net margin moved +8% 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+36%

Margin effect+8%

DalalBaazaar Score

55/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ ROE of 2.7% is weak

Quality vs. Valuation

Company Quality

52/ 100

Average

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

Valuation

72/ 100

Cheap

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

16.0x

3Y Median

130.7x

40 monthly readings · mean 155.9x · range 19.9x–425.0x

Sector Median

88.8x

median of 3 sector peers

🟢Current valuation is approximately 88% below its 3y median of 130.7x. 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 82% below the peer median of 88.8x.

vs. its own history

Cheap

130.7x median over 40 months · -88%

vs. sector peers

Cheap

88.8x median of 3 peers · -82%

vs. generic bands

Fair

15x–35x

EV/EBITDA

15.3x

PEG

1.16

What's Good / What's Bad

🟢 What's Going Well2

Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.
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

1 item require attention · 1 watch

🟡Short-term liquidity is tightFinancial
Current ratio of 0.71 — near-term obligations exceed near-term assets.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Priced below its own history
The stock trades 88% 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 82% 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?

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 8% a year✓ 10.8% CAGR
Latest reported year was 163.2%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 2%✓ 3.7%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✓ ₹9 Cr
Profit that never becomes cash eventually stops being profit.
4ROCE stays above 8%✗ 3.8%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.
5Valuation vs its own median of 130.7x✓ 16.0x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

4 / 10 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✗ 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

4 good · 4 neutral · 3 weak

Market Cap

₹8 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

16.0x

Fair

Fairly valued against the generic band

P/B Ratio

0.66x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹0.55

Profitable

Profitable on a per-share basis

ROE

2.7%

Weak

Weak capital efficiency

ROCE

3.8%

Weak

Low return on total capital employed

Debt/Equity

Not available

No data

Source didn't return this field

Revenue Growth (YoY)

163.2%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-25.0%

Falling

Profits are shrinking

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

₹9 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

1.2%

Weak

Thin margins leave little room for error

Net Margin

1.7%

Weak

Very little revenue reaches the bottom line

Current Ratio

0.71

Tight

Tight short-term liquidity

Beta (vs Nifty)

-0.07

Defensive

Steadier than the market

52W Range Position

12%

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

8.5 / 8.6

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

44.3

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹10 Cr	₹11 Cr	₹14 Cr	₹14 Cr	+10.8%
EBITDA	₹0 Cr	₹0 Cr	₹1 Cr	₹1 Cr	+10.4%
EBITDA Margin	3.8%	3.5%	6.2%	3.7%	—
PAT (Net Profit)	₹0 Cr	₹0 Cr	₹0 Cr	₹0 Cr	+13.7%
EPS	₹0.1	₹0.04	₹0.4	₹0.35	+51.8%
ROE	2.1%	0.3%	3.2%	2.7%	—
ROCE	3.1%	1.8%	3.5%	3.8%	—
Total Debt	₹0 Cr	₹0 Cr	—	—	—
Free Cash Flow	-₹3 Cr	₹0 Cr	-₹1 Cr	₹9 Cr	—

🟢 Revenue has grown at 10.8% a year over 3 years.

🟢 EBITDA has grown at 10.4% a year over 3 years.

🟡 EBITDA Margin has held roughly flat at 3.7% over 3 years.

🟢 PAT (Net Profit) has grown at 13.7% a year over 3 years.

🟢 EPS has grown at 51.8% a year over 3 years.

🟡 ROE has held roughly flat at 2.7% over 3 years.

🟡 ROCE has held roughly flat at 3.8% over 3 years.

🟢 Free Cash Flow has turned positive, from -₹3 Cr to ₹9 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹20 Cr

Total Liabilities

₹8 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

₹9 Cr

Capex

—

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

59.0%

Peer Comparison

Company	P/E	ROE
LARSEN & TOUBRO LTD.	30.1x	15.2%
SIEMENS LTD	88.8x	10.5%
ABB INDIA LIMITED	92.6x	19.1%

Recent News

2 positive4 general

Indo Euro Indchem Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 04 Sept

Indo Euro Indchem Ltd. Share Price Live Today

CNBC TV18, 03 Jan

Indo Euro Indchem Ltd. Financials – Balance Sheet, Profit & Loss, Cash Flow

Value Research, 30 Aug

AksharChem (India) standalone net profit rises 2042.25% in the June 2026 quarter

Business Standard, 13 AugResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

Mapro Industries Ltd. Peer Comparison – Compare with Others

Value Research, 04 Sept

Regent Enterprises standalone net profit rises 54.27% in the June 2026 quarter

Business Standard, 13 AugResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.
1 metric couldn't be retrieved for this stock — this is more common for smaller or thinly-covered listings.

DalalBaazaar Thesis

StrongFinancial Health · Growth · Valuation

WeakBusiness Quality · Profitability · Risk

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 of 5 tripwires tripped — ROCE stays above 8% · see Key things to watch ↑