Ishan International Limited

Sector n/a · NSE

₹2.25−₹0.10 (−4.26%)

DalalBaazaar Score

37 / 100

🔴 Weak

Verdict

CAUTION

Risk

Moderate

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

In simple words: The business is earning a fairly low return on the money invested in it, but sales are shrinking. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:46 pm

Understanding the Business

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

How does it make money?

Turns over ₹26 Cr a year. Of every ₹100 of sales, about ₹2 reaches shareholders as profit, with ₹5 left at the operating level before interest, tax and depreciation.

What is its competitive advantage?Little sign of one

Returns on capital of 4.1% 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.

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 -25% while net margin moved +2% 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-25%

Margin effect+2%

DalalBaazaar Score

37/ 100

Weak

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 9.1% a year
✗ Profit has declined at 8.4% a year
✗ Latest-year revenue growth of -63.4% is below the longer-term trend — momentum is fading

Quality vs. Valuation

Company Quality

36/ 100

Weak

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

Valuation

18/ 100

Expensive

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

Weak on business quality and not cheap enough to compensate.

vs. its own history

Not enough price and earnings history

vs. sector peers

Not enough peers with a usable P/E

vs. generic bands

No P/E available

EV/EBITDA

43.3x

PEG

—

What's Good / What's Bad

🟢 What's Going Well2

Very low debt
Debt/Equity of 0.27x leaves the balance sheet with plenty of headroom.
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

5 items require attention · 1 high · 4 watch

🔴Inventory building faster than salesFinancial
Inventory up 182% against revenue up -25% — stock may not be moving.
🟡Debt is increasingFinancial
Total debt is up 27% over 3 years.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹0 Cr in the latest year.
🟡Profit is decliningFinancial
Net profit is down 23% over 3 years.
🟡Margins are compressingFinancial
EBITDA margin is down 3.6 points over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

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 8.3% to 4.7%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
The debt load needs earnings to hold up
Debt is 4.9x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
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 3%✓ 4.7%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA falls below 3x✗ 4.9x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
3Free cash flow remains positive✗ -₹0 Cr
Profit that never becomes cash eventually stops being profit.
4Interest cover stays above 3x✗ 2.3x
How much operating profit can fall before interest stops being comfortably covered.
5ROCE stays above 8%✗ 4.1%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

3 / 9 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
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

2 good · 5 neutral · 4 weak

Market Cap

₹49 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

Not available

No data

Source didn't return this field

P/B Ratio

Not available

No data

Source didn't return this field

EPS (TTM)

Not available

No data

Source didn't return this field

ROE

1.7%

Weak

Weak capital efficiency

ROCE

4.1%

Weak

Low return on total capital employed

Debt/Equity

0.27x

Low

Conservative leverage

Revenue Growth (YoY)

-63.4%

Shrinking

Sales are contracting

Profit Growth (YoY)

30.6%

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

-₹0 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Gross Margin

21.1%

Proxy

Operating margin unavailable — showing gross margin instead

Net Margin

1.5%

Weak

Very little revenue reaches the bottom line

Current Ratio

2.60

Comfortable

Healthy short-term liquidity

Technical Snapshot

SMA 20 / SMA 50

0.5 / 0.5

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

40.0

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹35 Cr	₹30 Cr	₹72 Cr	₹26 Cr	-9.1%
EBITDA	₹3 Cr	₹2 Cr	₹1 Cr	₹1 Cr	-24.8%
EBITDA Margin	8.3%	6.8%	1.4%	4.7%	—
PAT (Net Profit)	₹1 Cr	₹1 Cr	₹0 Cr	₹0 Cr	-8.4%
EPS	₹0.02	₹0.28	₹0.01	—	—
ROE	2.2%	2.4%	1.3%	1.7%	—
ROCE	5.0%	5.9%	3.7%	4.1%	—
Total Debt	₹5 Cr	₹6 Cr	₹6 Cr	₹6 Cr	+8.4%
Free Cash Flow	-₹6 Cr	₹0 Cr	-₹0 Cr	-₹0 Cr	—

🔴 Revenue has shrunk at 9.1% a year over 3 years.

🔴 EBITDA has shrunk at 24.8% a year over 3 years.

🔴 EBITDA Margin has fallen from 8.3% to 4.7% over 3 years (-3.6 pts).

🔴 PAT (Net Profit) has shrunk at 8.4% a year over 3 years.

🟡 ROE has held roughly flat at 1.7% over 3 years.

🟡 ROCE has held roughly flat at 4.1% over 3 years.

🔴 Total Debt has grown at 8.4% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹34 Cr

Total Liabilities

₹11 Cr

Cash & Equivalents

₹1 Cr

Operating Cash Flow

-₹0 Cr

Capex

-₹0 Cr

Recent News

1 positive5 general

Ishan International Ltd. Peer Comparison – Compare with Others

Value Research, 08 Oct

ISHAN INTERNATIONAL LTD Share Price

Upstox, 30 Dec

Ishan International Net Profit Rises to ₹41.44 Lakh in FY26

scanx.trade, 15 MayResults

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

Ishan International Ltd. Financials – Balance Sheet, Profit & Loss, Cash Flow

Value Research, 07 Oct

SJP ULTRASONICS LTD. Stock/Share price , NSE/BSE Forecast News and Live Quotes

Equitymaster, 08 Oct

Ishan fever grips Ranchi ahead of T20I

The Times of India, 09 Oct

Watch Items

Revenue growth is negative (-63.4%) on the latest reported period — check if this is one-off or a trend.
Cross-check against the company's latest quarterly filing / investor presentation before acting.
Sector/industry classification unavailable — verify manually for peer comparison.
3 metrics couldn't be retrieved for this stock — this is more common for smaller or thinly-covered listings.

DalalBaazaar Thesis

MiddlingFinancial Health · Valuation

WeakBusiness Quality · Growth · Profitability · Risk

Points for each in the Score ↑

Weak on the fundamentals

Poor scores on business quality without a price low enough to compensate. There is no obvious argument for owning this over a stronger company at a similar valuation. 1 high-severity red flag sits above this conclusion and should be read first.

4 of 5 tripwires tripped — Debt / EBITDA falls below 3x; Free cash flow remains positive; Interest cover stays above 3x; ROCE stays above 8% · see Key things to watch ↑