Arcotech Limited (ARCOTECH) AI Stock Analysis

Arcotech Limited

(NSE:ARCOTECH)

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Rating:37Underperform

Action:initiatedcoverage

Date:01/16/26

Arcotech Limited receives the lowest possible score due to severe fundamental deterioration. The primary drivers are the complete absence of revenue for three years, deep insolvency characterized by negative equity, and persistent cash burn, signaling an inability to sustain operations without drastic restructuring.

Positive Factors

Negative Factors

Arcotech Limited Business Overview & Revenue Model

Company Description

Arcotech Limited, founded in 1981 and headquartered in Haryana, India, is a prominent manufacturer and supplier primarily focused on non-ferrous engineering products within India. The company's extensive product line encompasses a diverse range of no...

How the Company Makes Money

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Arcotech Limited Financial Statement Overview

Summary

The company is in a critical state of financial distress, scoring the minimum possible due to zero revenue generation for three consecutive years and a massive net loss of over 874 million. The balance sheet indicates technical insolvency with stockholders' equity at -2.9 billion and total debt exceeding 5.3 billion, while operating cash flow remains negative.

Income Statement

1Very Negative

Balance Sheet

2Very Negative

Cash Flow

2Very Negative

Financial statement breakdown
Breakdown	TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2021
Income Statement
Total Revenue	26.14M	0	0	0	523.69M	747.32M
Gross Profit	-104.71M	-104.54M	-105.41M	-109.78M	8.35M	-250.23M
EBITDA	-1.33B	-648.97M	-1.34B	-874.57M	-30.12M	-577.52M
Net Income	-1.43B	-874.89M	-1.44B	-821.57M	-265.24M	-600.89M
Balance Sheet
Total Assets	4.00B	3.41B	4.05B	5.22B	6.25B	5.75B
Cash, Cash Equivalents and Short-Term Investments	2.50M	2.60M	1.73M	554.00K	470.00K	489.00K
Total Debt	5.16B	5.32B	5.08B	4.91B	4.65B	4.70B
Total Liabilities	6.19B	6.31B	6.08B	5.81B	5.42B	5.52B
Stockholders Equity	-2.20B	-2.90B	-2.03B	-594.02M	828.90M	227.52M
Cash Flow
Free Cash Flow	52.47M	-86.76M	-24.06M	-60.17M	11.03M	16.00M
Operating Cash Flow	52.47M	-86.60M	-23.53M	-60.17M	15.85M	17.11M
Investing Cash Flow	0	-162.00K	-532.00K	50.00K	-4.25M	-458.00K
Financing Cash Flow	0	86.71M	24.06M	60.16M	-12.63M	-16.65M

Arcotech Limited Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

IN:ARCOTECH against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
IN:SUPERSPIN	48Neutral	INR 377.85M	-6.56	―	―	-4.09%	67.81%
IN:VCL	46Neutral	INR 292.17M	5.71	―	―	112.56%	414.57%
IN:LAXMICOT	42Neutral	INR 200.11M	-6.86	―	―	-30.67%	-23145.95%
IN:ARCOTECH	37Underperform	INR 245.70M	-1.42	―	―	―	-4.68%

* General Sector Average

Performance Comparison

IN:ARCOTECH and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
IN:JETKNIT	Jet Knitwears Ltd.	48.45	-71.80	-59.71%
IN:LAXMICOT	Laxmi Cotspin Ltd.	11.67	-9.49	-44.85%
IN:MORARJEE	Morarjee Textiles Limited	7.74	-0.77	-9.05%
IN:SUPERSPIN	Super Spinning Mills Limited	6.87	-2.68	-28.06%
IN:VCL	Vaxtex Cotfab Ltd	1.59	0.71	80.68%

Arcotech Limited Corporate Events

Arcotech Discloses SEBI Penalties on Company and Promoter Group Entities

Mar 5, 2026

Arcotech Limited has disclosed that the Securities and Exchange Board of India has issued an order dated 27 February 2026 imposing penalties and other directions on the company, certain directors and officers, and several promoter group entities. The...

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Jan 04, 2026

Arcotech Limited AI Stock Analysis