Jainex Aamcol Limited

Industrials — Tools & Accessories · BSE

₹192.95+₹9.15 (+4.98%)

DalalBaazaar Score

47 / 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, 6:59 pm

Understanding the Business

Company site ↗

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

What does this company do?

Jainex Aamcol Limited manufactures and sells gear hobs, special cutting and inspection tools, and precision accessories under the Aamcol brand in India.

IndustryTools & Accessories

SectorIndustrials

Employees104

Annual revenue₹24 Cr

How does it make money?

Turns over ₹24 Cr a year. Of every ₹100 of sales, about ₹6 reaches shareholders as profit, with ₹15 left at the operating level before interest, tax and depreciation. Each of its 104 employees supports ₹23.5 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹23.5 lakh

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 9.3% 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 +27% while net margin moved -13% 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+27%

Margin effect-13%

DalalBaazaar Score

47/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ ROCE of 9.3% is below 10% — capital is not working hard
✗ ROCE has fallen by 18.8 points — returns are eroding
• EBITDA margin of 15.4% is respectable
✗ Net margin of 5.1% is slim
• Revenue has compounded at 8.4% a year, which is the base these returns are earned on

Quality vs. Valuation

Company Quality

44/ 100

Weak

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

Valuation

63/ 100

Fair

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

Weak on business quality and not cheap enough to compensate.

Historical Valuation

Current P/E

25.9x

3Y Median

53.6x

40 monthly readings · mean 46.6x · range 18.5x–86.1x

Sector Median

88.8x

median of 3 sector peers

🟢Current valuation is approximately 52% below its 3y median of 53.6x. 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 71% below the peer median of 88.8x.

vs. its own history

Cheap

53.6x median over 40 months · -52%

vs. sector peers

Cheap

88.8x median of 3 peers · -71%

vs. generic bands

Fair

15x–35x

EV/EBITDA

15.4x

PEG

7.35

What's Good / What's Bad

🟢 What's Going Well1

Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 19.6% to 8.0% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 28.1% to 9.3% — often a sign of competition or overexpansion.

Red Flags

3 items require attention · 1 high · 2 watch

🔴Debt has risen sharplyFinancial
Total debt is up 226% over 3 years, from ₹5 Cr to ₹15 Cr.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹12 Cr in the latest year.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 28% over 3 years — each existing share owns a smaller slice of the company.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Priced below its own history
The stock trades 52% 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 71% 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?

The debt load needs earnings to hold up
Debt is 4.0x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
Returns on shareholder capital are falling
ROE has dropped from 19.6% to 8.0%. 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.
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

1EBITDA margin holds above 13%✓ 15.4%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA falls below 3x✗ 4.0x
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✗ -₹12 Cr
Profit that never becomes cash eventually stops being profit.
4Revenue growth stays above 6% a year✓ 8.4% CAGR
Latest reported year was 15.6%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
5ROCE stays above 8%✓ 9.3%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

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

₹43 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

25.9x

Fair

Fairly valued against the generic band

P/B Ratio

2.49x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹7.46

Profitable

Profitable on a per-share basis

ROE

8.0%

Moderate

Moderate capital efficiency

ROCE

9.3%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.86x

Moderate

Moderate leverage

Revenue Growth (YoY)

15.6%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-29.0%

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

-₹12 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

10.3%

Average

Average margins

Net Margin

5.1%

Average

Average bottom-line conversion

Current Ratio

1.47

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.31

Defensive

Steadier than the market

52W Range Position

79%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

182.9 / 160.4

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

51.1

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹19 Cr	₹20 Cr	₹22 Cr	₹24 Cr	+8.4%
EBITDA	₹3 Cr	₹2 Cr	₹1 Cr	₹4 Cr	+7.6%
EBITDA Margin	15.8%	9.0%	6.2%	15.4%	—
PAT (Net Profit)	₹1 Cr	₹1 Cr	₹0 Cr	₹1 Cr	+3.5%
EPS	₹7.14	₹2.96	₹2.3	₹8.05	+4.1%
ROE	19.6%	7.5%	4.7%	8.0%	—
ROCE	28.1%	15.8%	6.0%	9.3%	—
Total Debt	₹5 Cr	₹4 Cr	₹10 Cr	₹15 Cr	+48.3%
Free Cash Flow	₹1 Cr	₹1 Cr	-₹5 Cr	-₹12 Cr	—

🟢 Revenue has grown at 8.4% a year over 3 years.

🟢 EBITDA has grown at 7.6% a year over 3 years.

🟡 EBITDA Margin has held roughly flat at 15.4% over 3 years.

🟢 PAT (Net Profit) has grown at 3.5% a year over 3 years.

🟢 EPS has grown at 4.1% a year over 3 years.

🔴 ROE has fallen from 19.6% to 8.0% over 3 years (-11.6 pts).

🔴 ROCE has fallen from 28.1% to 9.3% over 3 years (-18.8 pts).

🔴 Total Debt has grown at 48.3% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹1 Cr to -₹12 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹39 Cr

Total Liabilities

₹22 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

₹4 Cr

Capex

-₹17 Cr

Shareholding (proxy)

Institutional Holding

2.4%

Insider Holding

73.4%

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

1 positive5 general

Jainex Aamcol Ltd. Financials – Balance Sheet, Profit & Loss, Cash Flow

Value Research, 17 Oct

Jainex Aamcol Ltd. Key Financial Ratios – Valuation, Profitability & More

Value Research, 29 Aug

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FEDERAL - MOGUL G Stock/Share price , NSE/BSE Forecast News and Live Quotes

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Watch Items

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

DalalBaazaar Thesis

MiddlingFinancial Health · Growth · Valuation

WeakBusiness Quality · 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.

2 of 5 tripwires tripped — Debt / EBITDA falls below 3x; Free cash flow remains positive · see Key things to watch ↑