Accord Transformer & Switchgear Limited

Industrials — Electrical Equipment & Parts · BSE

₹103.58−₹5.45 (−5.00%)

DalalBaazaar Score

55 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

Moderate

Driven by micro-cap size, which brings thin liquidity, falling profits.

In simple words: Reasonable but unspectacular business quality, but sales are shrinking. The direction of profits is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:00 pm

Understanding the Business

Company site ↗

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

What does this company do?

Accord Transformer & Switchgear Limited engages in the design, engineering, testing, manufacturing, deployment, and supply of a diversified range of electrical power and distribution equipment in India.

IndustryElectrical Equipment & Parts

SectorIndustrials

Employees114

Annual revenue₹70 Cr

How does it make money?

Turns over ₹70 Cr a year. Of every ₹100 of sales, about ₹6 reaches shareholders as profit, with ₹10 left at the operating level before interest, tax and depreciation. Each of its 114 employees supports ₹61.5 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹61.5 lakh

Who are its competitors?

The closest listed comparisons in its industry are SIEMENS LTD, ABB INDIA LIMITED, HAVELLS INDIA 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 13.2% 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 ROE17.1%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +72% while net margin moved +199% 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+72%

Margin effect+199%

DalalBaazaar Score

55/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ Profits have swung sharply from year to year — earnings are hard to forecast

Quality vs. Valuation

Company Quality

60/ 100

Average

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

Valuation

59/ 100

Fair

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

35.7x

Sector Median

88.8x

median of 3 sector peers

🟢Against its sector it trades 60% below the peer median of 88.8x.

vs. its own history

Not enough price and earnings history

vs. sector peers

Cheap

88.8x median of 3 peers · -60%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

29.0x

PEG

0.49

What's Good / What's Bad

🟢 What's Going Well4

Margins are improving
EBITDA margin is up from 4.3% to 10.3% over 3 years.
Cash generation is improving
Free cash flow is up 390% over 3 years.
Very low debt
Debt/Equity of 0.18x leaves the balance sheet with plenty of headroom.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 19.8% to 9.2% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 30.1% to 13.2% — often a sign of competition or overexpansion.

Red Flags

3 items require attention · 3 high

🔴Debt has risen sharplyFinancial
Total debt is up 289% over 3 years, from ₹2 Cr to ₹9 Cr.
🔴Receivables growing faster than salesFinancial
Receivables up 225% against revenue up 72% — sales are being booked faster than they are collected.
🔴Inventory building faster than salesFinancial
Inventory up 343% against revenue up 72% — stock may not be moving.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 4.3% to 10.3%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Cheaper than its peers
It trades 60% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Self-funding with balance-sheet headroom
Positive free cash flow of ₹7 Cr alongside low debt means growth, buybacks or dividends need no outside money — and a downturn can be absorbed rather than refinanced.
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?

Sales are being booked faster than collected
Receivables are up 225% against revenue up 72%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
Returns on shareholder capital are falling
ROE has dropped from 19.8% to 9.2%. 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.
Earnings are hard to forecast
Profit has swung sharply from year to year, so any single year — good or bad — is a weak guide to the next. Cyclical earnings deserve lower multiples for that reason.
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
3 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 15% a year✓ 19.8% CAGR
Latest reported year was -11.3%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 8%✓ 10.3%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✓ ₹7 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 1.2x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 10%✓ 13.2%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

6 / 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

3 good · 6 neutral · 2 weak

Market Cap

₹213 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

35.7x

Fair

Fairly valued against the generic band

P/B Ratio

4.36x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹2.9

Profitable

Profitable on a per-share basis

ROE

12.8%

Moderate

Moderate capital efficiency

ROCE

13.2%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.18x

Low

Conservative leverage

Revenue Growth (YoY)

-11.3%

Shrinking

Sales are contracting

Profit Growth (YoY)

-24.2%

Falling

Profits are shrinking

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

₹6 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

ROA

5.7%

Average

Average asset productivity

Operating Margin

9.4%

Average

Average margins

Net Margin

6.4%

Average

Average bottom-line conversion

Current Ratio

2.23

Comfortable

Healthy short-term liquidity

52W Range Position

82%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

86.7 / 72.8

Bullish alignment (short > long)

RSI (14)

64.5

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹41 Cr	₹49 Cr	₹79 Cr	₹70 Cr	+19.8%
EBITDA	₹2 Cr	₹3 Cr	₹9 Cr	₹7 Cr	+60.0%
EBITDA Margin	4.3%	5.5%	11.6%	10.3%	—
PAT (Net Profit)	₹1 Cr	₹2 Cr	₹6 Cr	₹5 Cr	+72.5%
EPS	₹0.43	₹0.78	₹2.89	—	—
ROE	19.8%	26.6%	27.6%	9.2%	—
ROCE	30.1%	38.2%	37.5%	13.2%	—
Total Debt	₹2 Cr	₹9 Cr	₹18 Cr	₹9 Cr	+57.3%
Free Cash Flow	₹1 Cr	-₹7 Cr	-₹11 Cr	₹7 Cr	+69.9%

🟢 Revenue has grown at 19.8% a year over 3 years.

🟢 EBITDA has grown at 60.0% a year over 3 years.

🟢 EBITDA Margin has risen from 4.3% to 10.3% over 3 years (+6.0 pts).

🟢 PAT (Net Profit) has grown at 72.5% a year over 3 years.

🔴 ROE has fallen from 19.8% to 9.2% over 3 years (-10.6 pts).

🔴 ROCE has fallen from 30.1% to 13.2% over 3 years (-16.9 pts).

🔴 Total Debt has grown at 57.3% a year over 3 years.

🟢 Free Cash Flow has grown at 69.9% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹84 Cr

Total Liabilities

₹35 Cr

Cash & Equivalents

₹13 Cr

Operating Cash Flow

₹9 Cr

Capex

-₹1 Cr

Shareholding (proxy)

Institutional Holding

1.2%

Insider Holding

71.7%

Peer Comparison

Company	P/E	ROE
SIEMENS LTD	88.8x	10.5%
ABB INDIA LIMITED	92.6x	19.1%
HAVELLS INDIA LIMITED	43.5x	17.1%

Recent News

1 mixed5 general

Accord Transformer targets 60-80% revenue growth in FY27

scanx.trade, 17 Oct

Stocks to Watch: BDL Defence Deal, Max Estates Land Tie-Up

HDFC Sky, 24 SeptPartnership

🟡Mixed / dependsA partnership, whose value depends entirely on terms that a headline will not carry. Worth reading the filing before assuming either way.

Accord Transformer & Switchgear shares list at 9% premium over IPO price

The Economic Times, 02 Mar

Accord Transformer & Switchgear share price hits 5% upper circuit after decent debut

Livemint, 02 Mar

Accord Transformer & Switchgear Share Price Hits 5% Upper Circuit on Debut | Stock Market Today Update

Samco, 02 Mar

Accord Transformer & Switchgear IPO subscribed 5.21 times so far on Day 1: Check price band, lot size and key dates

Upstox, 23 Feb

Watch Items

Revenue growth is negative (-11.3%) on the latest reported period — check if this is one-off or a trend.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongFinancial Health · Growth

MiddlingProfitability · Valuation

WeakBusiness Quality · Risk

Points for each in the Score ↑

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you. 3 high-severity red flags sit above this conclusion and should be read first.

All 5 tripwires holding · see Key things to watch ↑