MoneyWorks4Me

Check Before You Invest : Arfin India Ltd

BSE: 539151 NSE: ARFIN ISIN: INE784R01023
  |   Sector:  Metals & Mining   |   Industry:  Aluminium & Aluminium Products

Snapshot

Q.1 Which industry/sub-sector does Arfin India Ltd belong to?
Arfin India Ltd belongs to the Metals & Mining sector, operating specifically within the Aluminium & Aluminium Products segment.
Q.2 Is Arfin India Ltd a good quality company?
Arfin India Ltd is a weak quality company, based on a inconsistent multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is Arfin India Ltd undervalued or overvalued?
Arfin India Ltd appears Overvalued, as its key valuation ratios are higher than their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios Current 0-year
Historic Median
Price to Earnings 81.9 38.81
Price to Book 8.68 7.72
Price to Sales 2.09 3.12
EV to EBITDA 32.38 20.80
Q.4 Is Arfin India Ltd a good buy now?
Arfin India Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Performance Analysis

We have analysed the performance of the company on the following:

  • How has it performed on generating Profits?

    By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.

  • How efficiently has it utilized Capital?

    By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.

  • How is it managing its Debt?

    By checking its Debt to Equity and Cash Flow from Operations.

C: How much debt does the business have and is it at a sustainable level?

Q.1 Debt to Equity ratio of Arfin India Ltd?
Arfin India Ltd Debt-to-Equity ratio is 0.76, which is above the industry average of , indicating higher debt levels in the industry.

Q.2 Debt to cash flow from operations of Arfin India Ltd?
Arfin India Ltd Debt to cash flow from operations is 5.75, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Arfin India Ltd?

Q.1 Promoter shareholding and pledge status of Arfin India Ltd?
Promoters hold 69.77% of the Arfin India Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Arfin India Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Arfin India Ltd vs industry peers?
Arfin India Ltd revenue CAGR is %, compared to the industry median CAGR of 0%, indicating stable growth and maintaining its market share.
Profit Metrics
Current Level 0-year
Industry Median
Revenue Growth (%) - -
Gross Profit Growth (%) 55.6 9.8
Operating Profit Growth (%) 27.8 7.8
Net Profit Growth (%) 66.7 8.7
Operating Efficiency
Current Level 0-year
Industry Median
Asset Turnover (x) 1.99 0.94
ROE (%) - 9.44
ROCE (%) - 12.23
Cash Conversion Cycle (days) 88.15 63

Valuation & price assessment

Q.1 Stock return of Arfin India Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 27.2% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
27.2% 69.8% 32.8% 93.7%
Q.2 Valuation ratios of Arfin India Ltd vs historical?
The current P/E ratio of 81.9 is higher than its historical median of 38.81, indicating that the stock is trading above its historical average valuation.
Q.3 How do the current valuation ratios compare with 0-year historical median and industry numbers?
Valuation Ratios Current 0-year
Historic Median
0-year
Industry Median
Price to Earnings 81.9 38.81 -
Price to Book 8.68 7.72 -
Price to Sales 2.09 3.12 -
EV to EBITDA 32.38 20.80 -

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