On Door Concepts Limited

Sector n/a · NSE

₹479.40−₹12.20 (−2.48%)

DalalBaazaar Score

53 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

Very High

Driven by high debt relative to equity, negative free cash flow, micro-cap size, which brings thin liquidity.

In simple words: Reasonable but unspectacular business quality. Debt is 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 On Door Concepts 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 ₹320 Cr a year. Of every ₹100 of sales, about ₹3 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 10.4% 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.

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +85% while net margin moved -208% 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+85%

Margin effect-208%

DalalBaazaar Score

53/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ High leverage magnifies any downturn in earnings
✗ Profits have swung sharply from year to year — earnings are hard to forecast
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

57/ 100

Average

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

Valuation

35/ 100

Expensive

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.

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

17.9x

PEG

—

What's Good / What's Bad

🟢 What's Going Well2

Margins are improving
EBITDA margin is up from 0.9% to 4.9% over 3 years.
Debt is being paid down
Total debt is down 91% over 3 years.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

3 items require attention · 2 high · 1 watch

🔴High leverageFinancial
Debt/Equity of 9.22x — earnings must service borrowings before shareholders see anything.
🔴Receivables growing faster than salesFinancial
Receivables up 790% against revenue up 85% — sales are being booked faster than they are collected.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹1 Cr in the latest year.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 0.9% to 4.9%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Deleveraging frees up earnings
Debt is down 91% 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?

Leverage amplifies any setback
Debt/Equity of 9.22x. Interest is payable whether or not the business has a good year.
Sales are being booked faster than collected
Receivables are up 790% against revenue up 85%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
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 17% a year✓ 22.8% CAGR
Set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 3%✓ 4.9%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹1 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.7x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 8%✓ 10.4%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

1 / 7 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)
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

0 good · 9 neutral · 2 weak

Market Cap

₹271 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

9.7%

Moderate

Moderate capital efficiency

ROCE

10.4%

Moderate

Moderate return on the capital in the business

Debt/Equity

9.22x

High

High leverage

Revenue Growth (YoY)

Not available

No data

Source didn't return this field

Profit Growth (YoY)

Not available

No data

Source didn't return this field

Dividend Yield

None

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

Free Cash Flow

-₹1 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Gross Margin

11.1%

Proxy

Operating margin unavailable — showing gross margin instead

Net Margin

3.4%

Average

Average bottom-line conversion

Current Ratio

3.13

Comfortable

Healthy short-term liquidity

Technical Snapshot

SMA 20 / SMA 50

262.0 / 268.5

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

29.2

Oversold zone

Financial Trend (4-Year)

Metric	FY22	FY23	FY24	FY26	3Y CAGR
Revenue	₹173 Cr	₹180 Cr	₹234 Cr	₹320 Cr	+22.8%
EBITDA	₹2 Cr	₹4 Cr	₹9 Cr	₹16 Cr	+114.7%
EBITDA Margin	0.9%	2.2%	4.1%	4.9%	—
PAT (Net Profit)	-₹5 Cr	₹13 Cr	₹6 Cr	₹11 Cr	—
EPS	₹-9.51	₹22.67	—	—	—
ROE	—	25.0%	6.6%	9.7%	—
ROCE	—	26.3%	5.8%	10.4%	—
Total Debt	₹112 Cr	₹1 Cr	₹1 Cr	₹10 Cr	-55.0%
Free Cash Flow	—	₹6 Cr	-₹28 Cr	-₹1 Cr	—

🟢 Revenue has grown at 22.8% a year over 3 years.

🟢 EBITDA has grown at 114.7% a year over 3 years.

🟢 EBITDA Margin has risen from 0.9% to 4.9% over 3 years (+4.0 pts).

🟢 PAT (Net Profit) has turned positive, from -₹5 Cr to ₹11 Cr.

🔴 ROE has fallen from 25.0% to 9.7% over 3 years (-15.3 pts).

🔴 ROCE has fallen from 26.3% to 10.4% over 3 years (-15.9 pts).

🟢 Total Debt has shrunk at 55.0% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹6 Cr to -₹1 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹140 Cr

Total Liabilities

₹29 Cr

Cash & Equivalents

₹1 Cr

Operating Cash Flow

₹5 Cr

Capex

-₹5 Cr

Recent News

6 general

On Door Concepts promoters disclose 35.52% stake for FY26

scanx.trade, 18 Oct

On Door Concepts Share Price News: Retailing Stock Slides

Univest, 30 Sept

On Door Concepts Ltd Peer Comparison – Compare with Others

Value Research, 01 Sept

On Door Concepts (NSE: ONDOOR): Preferential Issue and Growth

Kalkine India, 06 Oct

On Door Concepts Ltd. Share Price: Market Volatility Impact

Univest, 05 Aug

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

Equitymaster, 09 Oct

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.
Sector/industry classification unavailable — verify manually for peer comparison.
5 metrics couldn't be retrieved for this stock — this is more common for smaller or thinly-covered listings.
RSI is in oversold territory — could mean either a bargain or a stock still falling for good reason. Check the 'why' before assuming reversal.

DalalBaazaar Thesis

StrongGrowth

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

1 of 5 tripwires tripped — Free cash flow remains positive · see Key things to watch ↑