Yash Optics & Lens Limited

Sector n/a · NSE

₹98.40+₹1.20 (+1.23%)

DalalBaazaar Score

63 / 100

🟢 Good

Verdict

REASONABLE

Risk

High

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

In simple words: Strong business and financial position, with both sales and profits growing well. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:58 pm

Understanding the Business

The 60-second version of Yash Optics & Lens 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 ₹40 Cr a year. Of every ₹100 of sales, about ₹20 reaches shareholders as profit, with ₹32 left at the operating level before interest, tax and depreciation.

What is its competitive advantage?Some evidence

ROCE of 38.7% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 1 years revenue moved +33% while net margin moved -11% 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+33%

Margin effect-11%

DalalBaazaar Score

63/ 100

Good

Weighted across six categories. Every point is explained below.

✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

70/ 100

Good

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 good business, but the price already reflects that. The quality is real; the question is whether you are overpaying for it today.

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

20.3x

PEG

—

What's Good / What's Bad

🟢 What's Going Well1

High return on capital employed
ROCE of 38.7% is the mark of a business that converts capital into profit efficiently.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 61.7% to 42.2% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 63.0% to 38.7% — often a sign of competition or overexpansion.

Red Flags

4 items require attention · 2 high · 2 watch

🔴Debt has risen sharplyFinancial
Total debt is up 170% over 1 years, from ₹4 Cr to ₹11 Cr.
🔴Profit up while operating cash flow fallsFinancial
Reported profit rose but cash generated by operations declined — worth checking whether earnings are being supported by non-cash items or working capital.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹6 Cr in the latest year.
🟡Margins are compressingFinancial
EBITDA margin is down 3.2 points over 1 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 38.7% means each rupee reinvested earns well above what capital costs. If the company can keep deploying at this rate, growth creates value rather than just consuming cash.

🔴 Bear CaseWhat could go wrong?

Margins are being competed away
EBITDA margin has fallen from 34.7% to 31.6%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Returns on shareholder capital are falling
ROE has dropped from 61.7% to 42.2%. 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.
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 25% a year✓ 33.4% CAGR
Latest reported year was 33.4%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 30%✓ 31.6%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹6 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.9x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 36%✓ 38.7%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

8 / 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

5 good · 5 neutral · 1 weak

Market Cap

₹244 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

42.2%

Strong

Strong capital efficiency

ROCE

38.7%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.57x

Low

Conservative leverage

Revenue Growth (YoY)

33.4%

Healthy

Healthy top-line growth

Profit Growth (YoY)

18.3%

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

-₹6 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Gross Margin

63.2%

Proxy

Operating margin unavailable — showing gross margin instead

Net Margin

20.3%

Good

Strong bottom-line conversion

Current Ratio

7.30

Comfortable

Healthy short-term liquidity

Technical Snapshot

SMA 20 / SMA 50

129.2 / 122.5

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

40.0

Neutral momentum

Financial Trend (2-Year)

Metric	FY22	FY23	1Y CAGR
Revenue	₹30 Cr	₹40 Cr	+33.4%
EBITDA	₹10 Cr	₹13 Cr	+21.2%
EBITDA Margin	34.7%	31.6%	—
PAT (Net Profit)	₹7 Cr	₹8 Cr	+18.3%
ROE	61.7%	42.2%	—
ROCE	63.0%	38.7%	—
Total Debt	₹4 Cr	₹11 Cr	+169.8%
Free Cash Flow	₹3 Cr	-₹6 Cr	—

🟢 Revenue has grown at 33.4% a year over 1 years.

🟢 EBITDA has grown at 21.2% a year over 1 years.

🔴 EBITDA Margin has fallen from 34.7% to 31.6% over 1 years (-3.2 pts).

🟢 PAT (Net Profit) has grown at 18.3% a year over 1 years.

🔴 ROE has fallen from 61.7% to 42.2% over 1 years (-19.5 pts).

🔴 ROCE has fallen from 63.0% to 38.7% over 1 years (-24.3 pts).

🔴 Total Debt has grown at 169.8% a year over 1 years.

🔴 Free Cash Flow has turned negative, from ₹3 Cr to -₹6 Cr.

Balance Sheet & Cash Flow — FY2023

Total Assets

₹34 Cr

Total Liabilities

₹15 Cr

Cash & Equivalents

₹1 Cr

Operating Cash Flow

-₹2 Cr

Capex

-₹4 Cr

Recent News

1 positive5 general

YASH OPTICS & LENS LTD Share Price - Live NSE: YASHOPTICS Stock Price & Chart

Upstox, 05 May

Yash Optics & Lens FY26 Revenue Rises 24.95%

scanx.trade, 09 MayResults

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

Yash Optics & Lens (NSEI:YASHOPTICS) - Stock Analysis

Simply Wall Street, 06 Apr

Yash Optics & Lens makes robust market debut, lists at 11% premium on NSE SME

Moneycontrol.com, 08 Apr

Yash Optics & Lens IPO Day 5: Issue booked over 8 times so far on last day; check GMP, other details of SME IPO

Livemint, 03 Apr

Yash Optics & Lens IPO Date, Review, Price, Allotment Details

IPO Watch, 29 Mar

Watch Items

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

StrongBusiness Quality · Growth · Profitability

MiddlingFinancial Health · Valuation

WeakRisk

Points for each in the Score ↑

Good business, demanding price

The quality is real and the price already reflects it. Buying here is a bet that the business keeps compounding for long enough to grow into the multiple — which good businesses often do, but it removes the margin for error that a lower price would have given 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 ↑