Vaswani Industries Limited

Basic Materials — Steel · NSE

₹41.90−₹1.85 (−4.23%)

DalalBaazaar Score

30 / 100

🔴 Weak

Verdict

CAUTION

Risk

Very High

Driven by high debt relative to equity, negative free cash flow, the company is currently loss-making.

In simple words: The company is currently losing money, though profits are falling even as sales grow. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 8:28 pm

Understanding the Business

Company site ↗

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

What does this company do?

Vaswani Industries Limited engages in the manufacture and trading of iron and steel products in India. It operates through the Iron & Steel, Power, Real Estate, and Agri Division segments.

IndustrySteel

SectorBasic Materials

Employees335

Annual revenue₹467 Cr

How does it make money?

Turns over ₹467 Cr a year. Of every ₹100 of sales, about ₹1 reaches shareholders as profit, with ₹9 left at the operating level before interest, tax and depreciation. Each of its 335 employees supports ₹1.40 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹1.40 Cr

Who are its competitors?

The closest listed comparisons in its industry are TATA STEEL LIMITED, JSW STEEL LIMITED, JINDAL STEEL LIMITED, STEEL AUTHORITY OF INDIA. 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 8.0% 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 ROE10.8%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +19% while net margin moved -41% 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+19%

Margin effect-41%

DalalBaazaar Score

30/ 100

Weak

Weighted across six categories. Every point is explained below.

✗ ROE of 2.8% is weak

Quality vs. Valuation

Company Quality

25/ 100

Weak

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

Valuation

44/ 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

N/A

No P/E — the company is lossmaking

EV/EBITDA

10.0x

PEG

—

What's Good / What's Bad

🟢 What's Going Well2

Margins are improving
EBITDA margin is up from 5.5% to 8.8% over 3 years.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention1

Return on capital is falling
ROCE has declined from 13.5% to 8.0% — often a sign of competition or overexpansion.

Red Flags

7 items require attention · 3 high · 4 watch

🔴Debt has risen sharplyFinancial
Total debt is up 673% over 3 years, from ₹36 Cr to ₹277 Cr.
🔴High leverageFinancial
Debt/Equity of 1.85x — earnings must service borrowings before shareholders see anything.
🔴Thin interest coverageFinancial
Operating profit covers interest only 1.8x — little room if earnings dip.
🟡Interest coverage is deterioratingFinancial
Cover has fallen from 2.6x to 1.8x.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹214 Cr in the latest year.
🟡Profit is decliningFinancial
Net profit is down 29% over 3 years.
🟡Inventory building faster than salesFinancial
Inventory up 68% against revenue up 19% — stock may not be moving.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 5.5% to 8.8%. 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?

The debt load needs earnings to hold up
Debt is 6.7x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
Growth barely outpaces inflation
Revenue compounding at 6.1% a year is close to the rate prices rise, so the business is gaining little ground in real terms. That leaves the share price dependent on a re-rating rather than on earnings growth.
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
3 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

1EBITDA margin holds above 7%✓ 8.8%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA falls below 3x✗ 6.7x
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✗ -₹214 Cr
Profit that never becomes cash eventually stops being profit.
4Interest cover stays above 3x✗ 1.8x
How much operating profit can fall before interest stops being comfortably covered.
5Revenue growth stays above 5% a year✓ 6.1% CAGR
Latest reported year was 3.1%. The bar is set below the established compounding rate, so ordinary variation does not trip it.

Investment Checklist

4 / 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

1 good · 3 neutral · 7 weak

Market Cap

₹138 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

Not meaningful

Loss-making

Earnings are negative, so a P/E multiple can't be read here

P/B Ratio

0.90x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹-0.04

Loss-making

Negative earnings per share — the business is losing money

ROE

2.8%

Weak

Weak capital efficiency

ROCE

8.0%

Weak

Low return on total capital employed

Debt/Equity

1.85x

High

High leverage

Revenue Growth (YoY)

3.1%

Modest

Modest growth

Profit Growth (YoY)

-80.0%

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

-₹214 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

8.6%

Average

Average margins

Net Margin

-0.0%

Weak

Very little revenue reaches the bottom line

Current Ratio

1.37

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.86

Market-like

Moves roughly in line with the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

44.4 / 46.6

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

29.8

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹392 Cr	₹389 Cr	₹412 Cr	₹467 Cr	+6.1%
EBITDA	₹22 Cr	₹22 Cr	₹29 Cr	₹41 Cr	+23.7%
EBITDA Margin	5.5%	5.6%	7.1%	8.8%	—
PAT (Net Profit)	₹6 Cr	₹9 Cr	₹9 Cr	₹4 Cr	-11.0%
EPS	₹2	₹3.01	₹2.81	₹1.31	-13.2%
ROE	5.3%	7.4%	6.3%	2.8%	—
ROCE	13.5%	12.4%	8.2%	8.0%	—
Total Debt	₹36 Cr	₹33 Cr	₹156 Cr	₹277 Cr	+97.7%
Free Cash Flow	₹29 Cr	₹22 Cr	-₹94 Cr	-₹214 Cr	—

🟢 Revenue has grown at 6.1% a year over 3 years.

🟢 EBITDA has grown at 23.7% a year over 3 years.

🟢 EBITDA Margin has risen from 5.5% to 8.8% over 3 years (+3.3 pts).

🔴 PAT (Net Profit) has shrunk at 11.0% a year over 3 years.

🔴 EPS has shrunk at 13.2% a year over 3 years.

🔴 ROE has fallen from 5.3% to 2.8% over 3 years (-2.5 pts).

🔴 ROCE has fallen from 13.5% to 8.0% over 3 years (-5.5 pts).

🔴 Total Debt has grown at 97.7% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹29 Cr to -₹214 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹508 Cr

Total Liabilities

₹358 Cr

Cash & Equivalents

₹5 Cr

Operating Cash Flow

₹18 Cr

Capex

-₹232 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

67.8%

Peer Comparison

Company	P/E	ROE
TATA STEEL LIMITED	19.8x	10.8%
JSW STEEL LIMITED	12.0x	24.7%
JINDAL STEEL LIMITED	39.1x	5.3%
STEEL AUTHORITY OF INDIA	16.5x	7.1%

Recent News

1 mixed5 general

Vaswani Industries (NSEI:VASWANI) - Stock Analysis

Simply Wall Street, 13 Oct

Vaswani Industries Share Price near 52-week low: analysis

Univest, 12 Oct

Vaswani Industries VASWANI Promoter Preferential Share Issue Approved

Kalkine India, 13 Oct

Vaswani Industries gets BSE, NSE in-principle approval for preferential issue

scanx.trade, 13 Oct

Vaswani Industries passes all resolutions at 23rd AGM

scanx.trade, 01 Oct

Vaswani Industries VASWANI Trading Window Closure Q2 FY27

Kalkine India, 22 SeptResults

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

Watch Items

Trading very close to its 52-week low — worth checking whether this reflects a temporary setback or a structural problem.
Cross-check against the company's latest quarterly filing / investor presentation before acting.
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

MiddlingValuation

WeakBusiness Quality · Financial Health · 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.

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