Naman Industries Proxima Limited

Sector n/a · NSE

₹117.35−₹1.85 (−1.55%)

DalalBaazaar Score

34 / 100

🔴 Weak

Verdict

CAUTION

Risk

High

Driven by negative free cash flow, 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, 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, 7:00 pm

Understanding the Business

The 60-second version of Naman Industries Proxima 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 ₹143 Cr a year. Of every ₹100 of sales, about ₹-2 reaches shareholders as profit, with ₹2 left at the operating level before interest, tax and depreciation.

What is its competitive advantage?Little sign of one

Returns on capital of -0.5% 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?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved -5% while net margin moved -163% 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-5%

Margin effect-163%

DalalBaazaar Score

34/ 100

Weak

Weighted across six categories. Every point is explained below.

✗ Return on equity is negative
✗ ROE has fallen by 68.3 points over the period

Quality vs. Valuation

Company Quality

33/ 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

48.2x

PEG

—

What's Good / What's Bad

🟢 What's Going Well1

Debt is being paid down
Total debt is down 19% over 3 years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 65.3% to -3.0% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 54.1% to -0.5% — often a sign of competition or overexpansion.

Red Flags

8 items require attention · 3 high · 5 watch

🔴Thin interest coverageFinancial
Operating profit covers interest only -0.2x — little room if earnings dip.
🔴The company is lossmakingFinancial
Net profit of -₹2 Cr in the latest reported year.
🔴Inventory building faster than salesFinancial
Inventory up 121% against revenue up -5% — stock may not be moving.
🟡Interest coverage is deterioratingFinancial
Cover has fallen from 3.3x to -0.2x.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹14 Cr in the latest year.
🟡Margins are compressingFinancial
EBITDA margin is down 4.7 points over 3 years.
🟡Receivables growing faster than salesFinancial
Receivables up 30% against revenue up -5% — sales are being booked faster than they are collected.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 22% over 3 years — each existing share owns a smaller slice of the company.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Deleveraging frees up earnings
Debt is down 19% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.

🔴 Bear CaseWhat could go wrong?

Margins are being competed away
EBITDA margin has fallen from 7.1% to 2.4%. 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 7.1x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
Sales are being booked faster than collected
Receivables are up 30% against revenue up -5%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
Returns on shareholder capital are falling
ROE has dropped from 65.3% to -3.0%. 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.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1EBITDA margin holds above 0%✓ 2.4%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA falls below 3x✗ 7.1x
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✗ -₹14 Cr
Profit that never becomes cash eventually stops being profit.
4Interest cover stays above 3x✗ -0.2x
How much operating profit can fall before interest stops being comfortably covered.
5ROCE stays above 8%✗ -0.5%
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

1 good · 5 neutral · 5 weak

Market Cap

₹153 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

-3.0%

Weak

Weak capital efficiency

ROCE

-0.5%

Weak

Low return on total capital employed

Debt/Equity

0.31x

Low

Conservative leverage

Revenue Growth (YoY)

-8.4%

Shrinking

Sales are contracting

Profit Growth (YoY)

-136.3%

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

-₹14 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Gross Margin

9.9%

Proxy

Operating margin unavailable — showing gross margin instead

Net Margin

-1.6%

Weak

Very little revenue reaches the bottom line

Current Ratio

2.10

Comfortable

Healthy short-term liquidity

Technical Snapshot

SMA 20 / SMA 50

46.5 / 43.1

Bullish alignment (short > long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

36.4

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹150 Cr	₹145 Cr	₹156 Cr	₹143 Cr	-1.7%
EBITDA	₹11 Cr	₹21 Cr	₹16 Cr	₹3 Cr	-31.8%
EBITDA Margin	7.1%	14.5%	10.4%	2.4%	—
PAT (Net Profit)	₹4 Cr	₹9 Cr	₹6 Cr	-₹2 Cr	—
EPS	₹3.57	₹8.67	₹5.34	—	—
ROE	65.3%	24.2%	7.9%	-3.0%	—
ROCE	54.1%	33.2%	14.1%	-0.5%	—
Total Debt	₹29 Cr	₹37 Cr	₹19 Cr	₹24 Cr	-6.6%
Free Cash Flow	-₹8 Cr	₹1 Cr	-₹18 Cr	-₹14 Cr	—

🟡 Revenue has been broadly flat over 3 years (-1.7% a year).

🔴 EBITDA has shrunk at 31.8% a year over 3 years.

🔴 EBITDA Margin has fallen from 7.1% to 2.4% over 3 years (-4.7 pts).

🔴 PAT (Net Profit) has turned negative, from ₹4 Cr to -₹2 Cr.

🔴 ROE has fallen from 65.3% to -3.0% over 3 years (-68.3 pts).

🔴 ROCE has fallen from 54.1% to -0.5% over 3 years (-54.6 pts).

🟢 Total Debt has shrunk at 6.6% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹122 Cr

Total Liabilities

₹45 Cr

Cash & Equivalents

₹14 Cr

Operating Cash Flow

-₹7 Cr

Capex

-₹7 Cr

Recent News

1 mixed5 general

Naman Industries Proxima (NSEI:NAMAN) - Stock Analysis

Simply Wall Street, 09 Oct

NAMAN INDUSTRE PRXIMA LTD Share Price

Upstox, 05 May

Bulk deals: Ace Investor Ashish Kacholia offloads 8.25% stake in Naman Industries Proxima

Moneycontrol.com, 20 Mar

NAMAN Stock Price and Chart — NSE:NAMAN

TradingView, 12 Aug

Naman Industries Proxima Q4 FY26 Results: PAT Rs 0.5 Cr, Revenue Rs 9 Crore

Univest, 18 MayResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Naman Industries Proxima IPO Date: Check Issue Date, Price, Lot size, Subscription, News and Details - Moneycontrol

Moneycontrol.com, 19 Mar

Watch Items

Revenue growth is negative (-8.4%) 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. 3 high-severity red flags sit 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 ↑