Inflame Appliances Limited

Consumer Cyclical — Furnishings, Fixtures & Appliances · BSE

₹224.00+₹4.60 (+2.10%)

DalalBaazaar Score

59 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

High

Driven by moderate debt load, negative free cash flow, micro-cap size, which brings thin liquidity.

In simple words: Reasonable but unspectacular business quality, though profits are falling even as sales grow. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:49 pm

Understanding the Business

Company site ↗

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

What does this company do?

Inflame Appliances Limited manufactures and sells kitchen appliances in India. The company offers liquefied petroleum gas stoves, cooktops, chimney, and sheet metal components.

IndustryFurnishings, Fixtures & Appliances

SectorConsumer Cyclical

Employees144

Annual revenue₹150 Cr

How does it make money?

Turns over ₹150 Cr a year. Of every ₹100 of sales, about ₹4 reaches shareholders as profit, with ₹12 left at the operating level before interest, tax and depreciation. Each of its 144 employees supports ₹1.04 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹1.04 Cr

Who are its competitors?

The closest listed comparisons in its industry are HAVELLS INDIA LIMITED, VOLTAS LTD, TITAN COMPANY 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 14.4% 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 ROE17.1%

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 +94% while net margin moved -7% 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+94%

Margin effect-7%

DalalBaazaar Score

59/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ ROE of 10.0% is weak

Quality vs. Valuation

Company Quality

61/ 100

Average

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

Valuation

74/ 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

28.8x

3Y Median

109.0x

40 monthly readings · mean 125.1x · range 47.1x–321.6x

Sector Median

68.5x

median of 3 sector peers

🟢Current valuation is approximately 74% below its 3y median of 109.0x. 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 58% below the peer median of 68.5x.

vs. its own history

Cheap

109.0x median over 40 months · -74%

vs. sector peers

Cheap

68.5x median of 3 peers · -58%

vs. generic bands

Fair

15x–35x

EV/EBITDA

11.8x

PEG

1.32

What's Good / What's Bad

🟢 What's Going Well3

Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.
Return on capital is rising
ROCE has improved from 10.9% to 14.4%.
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 high

🔴Debt has risen sharplyFinancial
Total debt is up 93% over 3 years, from ₹27 Cr to ₹53 Cr.
🔴Inventory building faster than salesFinancial
Inventory up 268% against revenue up 94% — stock may not be moving.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Priced below its own history
The stock trades 74% 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 58% 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.
Several serious flags at once
2 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 19% a year✓ 24.8% CAGR
Latest reported year was 39.5%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 10%✓ 12.2%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA stays below 2x✗ 2.9x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
4Interest cover stays above 3x✓ 3.3x
How much operating profit can fall before interest stops being comfortably covered.
5Free cash flow remains positive✓ ₹4 Cr
Profit that never becomes cash eventually stops being profit.

Investment Checklist

6 / 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

2 good · 7 neutral · 2 weak

Market Cap

₹168 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

28.8x

Fair

Fairly valued against the generic band

P/B Ratio

2.71x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹7.79

Profitable

Profitable on a per-share basis

ROE

10.0%

Moderate

Moderate capital efficiency

ROCE

14.4%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.85x

Moderate

Moderate leverage

Revenue Growth (YoY)

39.5%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-0.9%

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

-₹11 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

ROA

6.3%

Average

Average asset productivity

Operating Margin

10.3%

Average

Average margins

Net Margin

3.9%

Average

Average bottom-line conversion

Current Ratio

1.62

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.23

Defensive

Steadier than the market

52W Range Position

20%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

228.6 / 226.0

Bullish alignment (short > long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

38.5

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹77 Cr	₹92 Cr	₹106 Cr	₹150 Cr	+24.8%
EBITDA	₹10 Cr	₹8 Cr	₹11 Cr	₹18 Cr	+23.3%
EBITDA Margin	12.7%	8.8%	10.7%	12.2%	—
PAT (Net Profit)	₹3 Cr	₹1 Cr	₹3 Cr	₹6 Cr	+21.7%
EPS	₹4.54	₹1.43	₹4.17	—	—
ROE	7.8%	2.2%	5.6%	9.4%	—
ROCE	10.9%	5.7%	8.7%	14.4%	—
Total Debt	₹27 Cr	₹38 Cr	₹42 Cr	₹53 Cr	+24.4%
Free Cash Flow	-₹19 Cr	-₹10 Cr	-₹9 Cr	₹4 Cr	—

🟢 Revenue has grown at 24.8% a year over 3 years.

🟢 EBITDA has grown at 23.3% a year over 3 years.

🟡 EBITDA Margin has held roughly flat at 12.2% over 3 years.

🟢 PAT (Net Profit) has grown at 21.7% a year over 3 years.

🟢 ROE has risen from 7.8% to 9.4% over 3 years (+1.6 pts).

🟢 ROCE has risen from 10.9% to 14.4% over 3 years (+3.5 pts).

🔴 Total Debt has grown at 24.4% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹19 Cr to ₹4 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹146 Cr

Total Liabilities

₹84 Cr

Cash & Equivalents

₹4 Cr

Operating Cash Flow

₹11 Cr

Capex

-₹7 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

57.4%

Corporate Actions

Ex-Dividend Date

20 Jun 2019

Peer Comparison

Company	P/E	ROE
HAVELLS INDIA LIMITED	43.5x	17.1%
VOLTAS LTD	75.8x	7.0%
TITAN COMPANY LIMITED	68.5x	36.7%

Recent News

6 general

Inflame Appliances Ltd. Key Financial Ratios – Valuation, Profitability & More

Value Research, 30 Aug

Inflame Appliances to attend Arihant Capital virtual conference on Sep 25

scanx.trade, 22 Sept

Inflame Appliances Ltd. Peer Comparison – Compare with Others

Value Research, 30 Aug

Inflame Appliances to host investor meet on June 22

scanx.trade, 22 Jun

SINGERIND Stock Price and Chart — NSE:SINGERIND

TradingView, 19 Mar

Inflame Appliances Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 29 Aug

Watch Items

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

DalalBaazaar Thesis

StrongGrowth

MiddlingBusiness Quality · Financial Health · Valuation

WeakProfitability · 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. 2 high-severity red flags sit above this conclusion and should be read first.

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