🔍 At a Glance
Alfa Ica (India) Ltd manufactures high-pressure decorative laminate sheets used in furniture, interiors, and architectural applications. Despite consistent production volumes and 600+ design SKUs, financial growth has remained sluggish. With a 5-year profit CAGR of 3% and flat EPS, the stock looks glossy only on the surface.
1. Introduction with Hook
If you’ve ever eaten dosa on a shiny restaurant table, odds are that table might be laminated by Alfa Ica.
But investing in this company? That’s a whole other layer.
In an industry ruled by names like Greenlam, Century Ply, and Merino, Alfa Ica is that niche player quietly exporting sheets across the globe. Yet, over the last five years, it has struggled to break out of the microcap trap. So we asked the classic EduInvesting question:
“Company karta kya hai, aur paisa kahan banta hai?”
2. WTF Do They Even Do? (Business Model)
- Core Business: Alfa Ica manufactures and sells decorative laminate sheets & compacts
- Product Range: 600+ design decors and 50+ textures
- End Users: Furniture manufacturers, architects, interior designers, exporters
- Capacity: ~6 million sq. meters annually
- Brand: Sells under the brand “Alfaica”
- Geography: Domestic + international (export-focused)
So far, so standard. No clear moat. No major backward integration. No value-added services.
3. Financials Overview — Profit, Margins, ROE, Growth
Sales (5-Year CAGR): ~7%
PAT (5-Year CAGR): ~3%
ROE (FY25): 6.4%
OPM (FY25): 5.5%
EPS (FY25): ₹3.56
The numbers tell us one thing: flatline. Sales grew from ₹64 Cr in FY23 to ₹78.5 Cr in FY25, but profits haven’t really broken out.
Even in FY25, PAT was just ₹1.44 Cr — hardly inspiring.
4. Valuation — Is It Cheap, Meh, or Crack?
Current Price: ₹88
- P/E: 24.7x
- Book Value: ₹57.5
- P/B: ~1.53x
FV Range Calculation:
Assuming fair P/E of 15–20x and normalized EPS of ₹3.5:
- Fair Value = ₹52 to ₹70
🚩 Current price looks a bit frothy unless margins improve.
5. What’s Cooking — News, Triggers, Drama
- No recent capex, new product launches, or branding pushes
- Reappointed secretarial & internal auditors in May 2025
- Continued focus on exports, but no visible expansion plans
In short: zero masala.
No JV. No PE buzz. No Smart City orders. No ESG narrative.
6. Balance Sheet — How Much Debt, How Many Dreams?
- Equity Capital: ₹4.04 Cr
- Reserves: ₹19.18 Cr
- Borrowings: ₹19 Cr (up from ₹14 Cr in FY24)
- Debt/Equity: ~0.67x
The company isn’t over-leveraged, but it’s not cash-rich either. A middle-class balance sheet if there ever was one.
7. Cash Flow — Sab Number Game Hai
- FY25 CFO: ₹1.87 Cr (down from ₹5.2 Cr in FY24)
- FCF? Very tight
Free cash flow has been patchy and inconsistent. Combine this with no dividends and muted growth = low confidence.
8. Ratios — Sexy or Stressy?
- ROCE: 9.89%
- Inventory Days: 107
- Debtor Days: 56
- CCC: 126 days (a bit high)
For a commodity business with wafer-thin margins, these working capital numbers sting.
9. P&L Breakdown — Show Me the Money
- FY25 Revenue: ₹78.5 Cr
- OPM: 5.51%
- Operating Profit: ₹4.33 Cr
- Interest: ₹1.94 Cr
- Depreciation: ₹1.35 Cr
- PAT: ₹1.44 Cr
You read that right. Post depreciation, interest and tax, there’s barely any meat left.
10. Peer Comparison — Who Else in the Game?
Company | Market Cap | ROCE | PAT Margin | P/E |
---|---|---|---|---|
Supreme Inds | ₹56,149 Cr | 22% | 9% | 60.8x |
Astral | ₹40,837 Cr | 20% | 9% | 78.6x |
Finolex Inds | ₹13,563 Cr | 10% | 11% | 29.8x |
Alfa Ica | ₹35.6 Cr | 9.9% | 1.8% | 24.7x |
Alfa Ica is the smallest fish in a tank full of whales. No pricing power. No scale.
11. Miscellaneous — Shareholding, Promoters
- Promoter Holding: 71.12% (steady for years)
- No institutional interest (DII: 0.05%)
- Retail-owned microcap — 5,695 shareholders
- No buybacks, no ESOPs, no corporate action excitement
12. EduInvesting Verdict️
Decorative laminates are supposed to shine. But Alfa Ica’s financials are matte finish.
Solid brand recall in niche circles, but tiny scale and flat growth limit its appeal. Unless the company shows:
- Margin expansion
- Exports boom
- Operational leverage
…it’ll stay in the “boring microcap” drawer.
EduInvesting Tagline:
“Laminate toh kar liya, lekin portfolio ka surface abhi bhi dull hai.”
FV Range: ₹52 – ₹70
CMP: ₹88 — Trading above comfort zone.
✍️ Written by Prashant | 🗓️ July 1, 2025
Tags: Alfa Ica, decorative laminates, microcap stocks, smallcap analysis, furniture industry, exports, value traps, 5-year recap, EduInvesting