Prolife Industries Limited

Sector n/a · NSE

₹210.00+₹5.25 (+2.56%)

DalalBaazaar Score

41 / 100

🟡 Moderate

Verdict

CAUTION

Risk

High

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

In simple words: Reasonable but unspectacular business quality, 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, 6:59 pm

Understanding the Business

The 60-second version of Prolife Industries 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 ₹55 Cr a year. Of every ₹100 of sales, about ₹8 reaches shareholders as profit, with ₹13 left at the operating level before interest, tax and depreciation.

What is its competitive advantage?Little sign of one

Returns on capital of 11.8% 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 -30% while net margin moved -12% 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-30%

Margin effect-12%

DalalBaazaar Score

41/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 11.4% a year
✗ Profit has declined at 14.9% a year
✗ Profit fell 9.1% in the latest year

Quality vs. Valuation

Company Quality

41/ 100

Weak

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

Valuation

60/ 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.

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

10.1x

PEG

—

What's Good / What's Bad

🟢 What's Going Well2

Debt is being paid down
Total debt is down 86% over 3 years.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 21.4% to 8.6% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 26.1% to 11.8% — often a sign of competition or overexpansion.

Red Flags

3 items require attention · 1 high · 2 watch

🔴Inventory building faster than salesFinancial
Inventory up 62% against revenue up -30% — stock may not be moving.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹3 Cr in the latest year.
🟡Profit is decliningFinancial
Net profit is down 38% over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Deleveraging frees up earnings
Debt is down 86% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
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?

Returns on shareholder capital are falling
ROE has dropped from 21.4% to 8.6%. 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.
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 11%✓ 12.7%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Free cash flow remains positive✗ -₹3 Cr
Profit that never becomes cash eventually stops being profit.
3Debt / EBITDA stays below 2x✓ 0.0x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
4ROCE stays above 9%✓ 11.8%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

2 / 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 · 7 neutral · 3 weak

Market Cap

₹86 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

8.6%

Moderate

Moderate capital efficiency

ROCE

11.8%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.55x

Low

Conservative leverage

Revenue Growth (YoY)

-1.7%

Shrinking

Sales are contracting

Profit Growth (YoY)

-9.1%

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

-₹3 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Gross Margin

34.8%

Proxy

Operating margin unavailable — showing gross margin instead

Net Margin

7.8%

Average

Average bottom-line conversion

Current Ratio

9.72

Comfortable

Healthy short-term liquidity

Technical Snapshot

SMA 20 / SMA 50

79.0 / 80.1

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

48.7

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹78 Cr	₹57 Cr	₹55 Cr	₹55 Cr	-11.4%
EBITDA	₹11 Cr	₹13 Cr	₹8 Cr	₹7 Cr	-14.0%
EBITDA Margin	13.9%	23.6%	14.0%	12.7%	—
PAT (Net Profit)	₹7 Cr	₹9 Cr	₹5 Cr	₹4 Cr	-14.9%
EPS	₹16.89	₹21.4	₹11.43	—	—
ROE	21.4%	21.4%	10.3%	8.6%	—
ROCE	26.1%	26.9%	13.7%	11.8%	—
Total Debt	₹2 Cr	₹4 Cr	₹3 Cr	₹0 Cr	-47.8%
Free Cash Flow	-₹1 Cr	₹16 Cr	-₹2 Cr	-₹3 Cr	—

🔴 Revenue has shrunk at 11.4% a year over 3 years.

🔴 EBITDA has shrunk at 14.0% a year over 3 years.

🔴 EBITDA Margin has fallen from 13.9% to 12.7% over 3 years (-1.2 pts).

🔴 PAT (Net Profit) has shrunk at 14.9% a year over 3 years.

🔴 ROE has fallen from 21.4% to 8.6% over 3 years (-12.8 pts).

🔴 ROCE has fallen from 26.1% to 11.8% over 3 years (-14.4 pts).

🟢 Total Debt has shrunk at 47.8% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹54 Cr

Total Liabilities

₹5 Cr

Cash & Equivalents

₹16 Cr

Operating Cash Flow

-₹2 Cr

Capex

-₹1 Cr

Recent News

1 positive5 general

Don't Race Out To Buy Prolife Industries Limited (NSE:PROLIFE) Just Because It's Going Ex-Dividend

Simply Wall Street, 14 SeptCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

Prolife Industries promoters declare no encumbrance on shares in FY26

scanx.trade, 15 Jun

UDAY JEWELLERY INDUSTRIES Stock/Share price , NSE/BSE Forecast News and Live Quotes

Equitymaster, 26 Sept

Momentum Stocks: Plastiblends India, Websol Energy hit upper circuit; Adani Power, Welspun Corp at 52-week...

Moneycontrol.com, 28 Apr

Zigly Pet Care Acquires Prolife Speciality Vet Clinic to Expand Mumbai Presence

Indian Retailer, 30 Sept

Pressure Sensitive Systems (India) (BSE:526773) - Stock Analysis

Simply Wall Street, 11 Jul

Watch Items

Revenue growth is negative (-1.7%) 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

StrongFinancial Health

MiddlingBusiness Quality · Valuation

WeakGrowth · 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.

1 of 4 tripwires tripped — Free cash flow remains positive · see Key things to watch ↑