Yasho Industries Limited

Basic Materials — Specialty Chemicals · NSE

₹3,620.00−₹62.40 (−1.69%)

DalalBaazaar Score

38 / 100

🔴 Weak

Verdict

CAUTION

Risk

High

Driven by moderate debt load, micro-cap size, which brings thin liquidity, a very high earnings multiple, which leaves little margin for disappointment.

In simple words: The business is earning a fairly low return on the money invested in it, with both sales and profits growing well. Valuation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:46 pm

Understanding the Business

Company site ↗

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

What does this company do?

Yasho Industries Limited engages in the manufacture and sale of specialty and fine chemicals in India, the United States, Europe, Asia, and the Middle East.

IndustrySpecialty Chemicals

SectorBasic Materials

Employees829

Annual revenue₹807 Cr

How does it make money?

Turns over ₹807 Cr a year. Of every ₹100 of sales, about ₹3 reaches shareholders as profit, with ₹17 left at the operating level before interest, tax and depreciation. Each of its 829 employees supports ₹97.4 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹97.4 lakh

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 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.

Peer median ROE22.3%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +21% while net margin moved -69% 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+21%

Margin effect-69%

DalalBaazaar Score

38/ 100

Weak

Weighted across six categories. Every point is explained below.

✗ P/E of 75.7x is demanding — it needs sustained high growth to justify
✗ P/E is 95% above its own historical median of 38.8x — expensive by its own standards
✗ P/B of 9.83x is a steep premium to book

Quality vs. Valuation

Company Quality

40/ 100

Weak

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

Valuation

23/ 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.

Historical Valuation

Current P/E

75.7x

3Y Median

38.8x

40 monthly readings · mean 144.3x · range 26.8x–725.3x

Sector Median

40.4x

median of 4 sector peers

⚠️Current valuation is approximately 95% above its 3y median of 38.8x. Paying more than usual needs a reason — faster growth, a better balance sheet, or a re-rating you believe in.

⚠️Against its sector it trades 88% above the peer median of 40.4x.

vs. its own history

Expensive

38.8x median over 40 months · +95%

vs. sector peers

Expensive

40.4x median of 4 peers · +88%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

35.9x

PEG

—

What's Good / What's Bad

🟢 What's Going Well2

Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention3

Margins are compressing
EBITDA margin has slipped from 18.6% to 17.0% over 3 years.
Return on equity is falling
ROE has dropped from 28.5% to 5.7% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 24.2% to 10.4% — often a sign of competition or overexpansion.

Red Flags

5 items require attention · 3 high · 2 watch

🔴Debt has risen sharplyFinancial
Total debt is up 72% over 3 years, from ₹324 Cr to ₹556 Cr.
🔴Thin interest coverageFinancial
Operating profit covers interest only 1.7x — little room if earnings dip.
🔴Receivables growing faster than salesFinancial
Receivables up 76% against revenue up 21% — sales are being booked faster than they are collected.
🟡Profit is decliningFinancial
Net profit is down 63% over 3 years.
🟡Inventory building faster than salesFinancial
Inventory up 53% against revenue up 21% — stock may not be moving.

Investment Thesis

🟢 Bull CaseWhat could make this work?

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?

Margins are being competed away
EBITDA margin has fallen from 18.6% to 17.0%. 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 4.1x 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 76% against revenue up 21%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
The price already assumes success
The stock trades 95% above its own median multiple. At this level the business has to deliver just to stand still, and a stumble is repriced twice — lower earnings on a lower multiple.
Growth barely outpaces inflation
Revenue compounding at 6.5% 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.

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

1EBITDA margin holds above 15%✓ 17.0%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA falls below 3x✗ 4.1x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
3Interest cover stays above 3x✗ 1.7x
How much operating profit can fall before interest stops being comfortably covered.
4Revenue growth stays above 5% a year✓ 6.5% CAGR
Latest reported year was 54.9%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
5Free cash flow remains positive✓ ₹77 Cr
Profit that never becomes cash eventually stops being profit.

Investment Checklist

5 / 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

4 good · 4 neutral · 3 weak

Market Cap

₹4,365 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

75.7x

Expensive

Expensive — verify against sector peers

P/B Ratio

9.83x

Rich

Steep premium to book — needs high, durable returns to justify

EPS (TTM)

₹47.83

Profitable

Profitable on a per-share basis

ROE

5.7%

Weak

Weak capital efficiency

ROCE

10.4%

Moderate

Moderate return on the capital in the business

Debt/Equity

1.26x

Moderate

Moderate leverage

Revenue Growth (YoY)

54.9%

Healthy

Healthy top-line growth

Profit Growth (YoY)

890.1%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.01%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

₹77 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

19.2%

Good

Healthy core-business profitability

Net Margin

6.1%

Average

Average bottom-line conversion

Current Ratio

1.37

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.49

Defensive

Steadier than the market

52W Range Position

64%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

4030.2 / 4140.4

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

29.3

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹668 Cr	₹588 Cr	₹664 Cr	₹807 Cr	+6.5%
EBITDA	₹124 Cr	₹105 Cr	₹116 Cr	₹137 Cr	+3.3%
EBITDA Margin	18.6%	17.9%	17.5%	17.0%	—
PAT (Net Profit)	₹68 Cr	₹58 Cr	₹6 Cr	₹25 Cr	-28.1%
EPS	₹59.54	₹50.83	₹5.32	₹20.95	-29.4%
ROE	28.5%	19.7%	1.5%	5.7%	—
ROCE	24.2%	12.6%	8.6%	10.4%	—
Total Debt	₹324 Cr	₹579 Cr	₹580 Cr	₹556 Cr	+19.7%
Free Cash Flow	-₹141 Cr	-₹247 Cr	-₹54 Cr	₹77 Cr	—

🟢 Revenue has grown at 6.5% a year over 3 years.

🟢 EBITDA has grown at 3.3% a year over 3 years.

🔴 EBITDA Margin has fallen from 18.6% to 17.0% over 3 years (-1.6 pts).

🔴 PAT (Net Profit) has shrunk at 28.1% a year over 3 years.

🔴 EPS has shrunk at 29.4% a year over 3 years.

🔴 ROE has fallen from 28.5% to 5.7% over 3 years (-22.8 pts).

🔴 ROCE has fallen from 24.2% to 10.4% over 3 years (-13.8 pts).

🔴 Total Debt has grown at 19.7% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹141 Cr to ₹77 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹1,155 Cr

Total Liabilities

₹711 Cr

Cash & Equivalents

₹4 Cr

Operating Cash Flow

₹151 Cr

Capex

-₹74 Cr

Shareholding (proxy)

Institutional Holding

5.0%

Insider Holding

75.3%

Corporate Actions

Dividend Rate

₹0.5

Ex-Dividend Date

30 Jul 2026

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 mixed5 general

YASHO Forecast — Price Target — Prediction for 2027

TradingView, 07 OctAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

After years of capex pain, is Yasho Industries entering a new growth phase?

The Indian Express, 18 Aug

Yasho Industries Share Price: Price Action and Valuation

Univest, 08 Oct

Why Yasho Industries’ ₹150 Cr Deal Could Change Its Growth Story

Outlook Business, 18 Aug

Yasho Industries - Unique Picks: 10 stocks held by a single MF scheme in September; rally up to 225% in FY27 so far

The Economic Times, 13 Oct

Yasho Industries shareholders approve borrowing limit hike to ₹1,250 crore

scanx.trade, 13 Oct

Watch Items

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

MiddlingBusiness Quality · Financial Health

WeakGrowth · Profitability · Valuation · 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.

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