Stallion India Fluorochemicals Limited

Basic Materials — Specialty Chemicals · NSE

₹209.00+₹3.25 (+1.58%)

DalalBaazaar Score

51 / 100

🟡 Moderate

Verdict

CAUTION

Risk

Very High

Driven by high debt relative to equity, 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, with modest growth. Debt is 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 Stallion India Fluorochemicals Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Stallion India Fluorochemicals Limited engages in debulking, blending, and processing of refrigerants and industrial gases in India. It provides fluorochemicals, such as hydrocarbons (HC), hydrofluorocarbons (HFC), and hydrofluoroolefins (HFO).

IndustrySpecialty Chemicals

SectorBasic Materials

Employees30

Annual revenue₹431 Cr

How does it make money?

Turns over ₹431 Cr a year. Of every ₹100 of sales, about ₹10 reaches shareholders as profit, with ₹14 left at the operating level before interest, tax and depreciation. Each of its 30 employees supports ₹14.35 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹14.35 Cr

Who are its competitors?

The closest listed comparisons in its industry are ASIAN PAINTS LIMITED, PIDILITE INDUSTRIES LTD, SRF LTD, UPL 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 8.7% 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 ROE22.3%

What has been driving growth?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved +91% while net margin moved +135% 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+91%

Margin effect+135%

DalalBaazaar Score

51/ 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

54/ 100

Average

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

Valuation

53/ 100

Fair

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.

Historical Valuation

Current P/E

39.2x

2Y Median

41.7x

23 monthly readings · mean 45.9x · range 24.2x–83.2x

Sector Median

40.4x

median of 4 sector peers

🟡Currently trading close to its 2y median of 41.7x — the market is paying about what it usually pays for this company.

🟡Against its sector it is priced broadly in line with the peer median of 40.4x.

vs. its own history

Fair

41.7x median over 23 months · -6%

vs. sector peers

Fair

40.4x median of 4 peers · -3%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

38.1x

PEG

0.60

What's Good / What's Bad

🟢 What's Going Well2

Margins are improving
EBITDA margin is up from 8.7% to 13.7% 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 13.8% to 6.4% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 19.7% to 8.7% — often a sign of competition or overexpansion.

Red Flags

5 items require attention · 4 high · 1 watch

🔴Debt has risen sharplyFinancial
Total debt is up 89% over 3 years, from ₹18 Cr to ₹34 Cr.
🔴High leverageFinancial
Debt/Equity of 5.07x — earnings must service borrowings before shareholders see anything.
🔴Free cash flow negative for 4 yearsFinancial
The business has not covered its capital spending from operations for several years running, which has to be funded externally.
🔴Inventory building faster than salesFinancial
Inventory up 204% against revenue up 91% — stock may not be moving.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 24% over 3 years — each existing share owns a smaller slice of the company.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 8.7% to 13.7%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
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?

Leverage amplifies any setback
Debt/Equity of 5.07x. Interest is payable whether or not the business has a good year.
Returns on shareholder capital are falling
ROE has dropped from 13.8% to 6.4%. 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.
Several serious flags at once
4 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 18% a year✓ 24.1% CAGR
Latest reported year was 9.9%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 12%✓ 13.7%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹10 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.6x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 8%✓ 8.7%
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 · 6 neutral · 3 weak

Market Cap

₹2,426 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

39.2x

Fair

Fairly valued against the generic band

P/B Ratio

2.52x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹5.33

Profitable

Profitable on a per-share basis

ROE

6.4%

Weak

Weak capital efficiency

ROCE

8.7%

Moderate

Moderate return on the capital in the business

Debt/Equity

5.07x

High

High leverage

Revenue Growth (YoY)

9.9%

Modest

Modest growth

Profit Growth (YoY)

22.1%

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

-₹10 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

17.8%

Good

Healthy core-business profitability

Net Margin

11.8%

Good

Strong bottom-line conversion

Current Ratio

11.85

Comfortable

Healthy short-term liquidity

52W Range Position

39%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

220.6 / 224.1

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

38.2

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹225 Cr	₹233 Cr	₹377 Cr	₹431 Cr	+24.1%
EBITDA	₹20 Cr	₹26 Cr	₹49 Cr	₹59 Cr	+44.7%
EBITDA Margin	8.7%	11.1%	13.1%	13.7%	—
PAT (Net Profit)	₹10 Cr	₹15 Cr	₹32 Cr	₹44 Cr	+65.0%
EPS	₹1.05	₹1.66	₹4.23	₹5.34	+72.2%
ROE	13.8%	12.4%	10.7%	6.4%	—
ROCE	19.7%	19.9%	15.7%	8.7%	—
Total Debt	₹18 Cr	₹65 Cr	₹2 Cr	₹34 Cr	+23.6%
Free Cash Flow	-₹3 Cr	-₹75 Cr	-₹18 Cr	-₹10 Cr	—

🟢 Revenue has grown at 24.1% a year over 3 years.

🟢 EBITDA has grown at 44.7% a year over 3 years.

🟢 EBITDA Margin has risen from 8.7% to 13.7% over 3 years (+5.1 pts).

🟢 PAT (Net Profit) has grown at 65.0% a year over 3 years.

🟢 EPS has grown at 72.2% a year over 3 years.

🔴 ROE has fallen from 13.8% to 6.4% over 3 years (-7.4 pts).

🔴 ROCE has fallen from 19.7% to 8.7% over 3 years (-11.0 pts).

🔴 Total Debt has grown at 23.6% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹737 Cr

Total Liabilities

₹56 Cr

Cash & Equivalents

₹212 Cr

Operating Cash Flow

₹39 Cr

Capex

-₹49 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

63.2%

Peer Comparison

Company	P/E	ROE
ASIAN PAINTS LIMITED	46.9x	22.3%
PIDILITE INDUSTRIES LTD	57.8x	24.4%
SRF LTD	33.8x	15.4%
UPL LIMITED	21.5x	6.1%

Recent News

1 positive1 mixed4 general

Stallion India Fluorochemicals Share Price Forecast to 2030

Univest, 03 Aug

Impressive Earnings May Not Tell The Whole Story For Stallion India Fluorochemicals (NSE:STALLION)

Simply Wall Street, 21 MayResults

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

Stallion India Fluorochemicals Q1 Results: Net profit surges 79% YoY

scanx.trade, 12 AugResults

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

Stallion India Fluorochemicals Ltd leads gainers in 'B' group

Business Standard, 10 Jul

Stallion India Fluorochemicals Ltd Peer Comparison – Compare with Others

Value Research, 29 Aug

Stallion India Standalone March 2026 Net Sales at Rs 109.99 crore, down 27.43% Y-o-Y

Moneycontrol.com, 13 May

Watch Items

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

DalalBaazaar Thesis

StrongGrowth

MiddlingBusiness Quality · Financial Health · Profitability · Valuation

WeakRisk

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. 4 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 ↑