Admach Systems Limited

Industrials — Specialty Industrial Machinery · BSE

₹516.00−₹4.00 (−0.77%)

DalalBaazaar Score

68 / 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, 6:59 pm

Understanding the Business

Company site ↗

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

What does this company do?

Admach Systems Limited designs, develops, manufactures, exports, and installs customized special purpose machinery and advanced industrial systems for the engineering industry in India and internationally.

IndustrySpecialty Industrial Machinery

SectorIndustrials

Employees56

Annual revenue₹69 Cr

How does it make money?

Turns over ₹69 Cr a year. Of every ₹100 of sales, about ₹15 reaches shareholders as profit, with ₹21 left at the operating level before interest, tax and depreciation. Each of its 56 employees supports ₹1.23 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹1.23 Cr

Who are its competitors?

The closest listed comparisons in its industry are SIEMENS LTD, ABB INDIA LIMITED, LARSEN & TOUBRO LTD., 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?Some evidence

ROCE of 18.0% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

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 +426% while net margin moved +1863% 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+426%

Margin effect+1863%

DalalBaazaar Score

68/ 100

Good

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
✗ Trading within 10% of its 52-week high — entries here carry more pullback risk
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

76/ 100

Good

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

Valuation

67/ 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

28.1x

1.0Y Median

31.1x

12 monthly readings · mean 35.0x · range 19.3x–55.5x

Sector Median

66.2x

median of 4 sector peers

🟡Currently trading close to its 1.0y median of 31.1x — the market is paying about what it usually pays for this company.

🟢Against its sector it trades 58% below the peer median of 66.2x.

vs. its own history

Fair

31.1x median over 12 months · -10%

vs. sector peers

Cheap

66.2x median of 4 peers · -58%

vs. generic bands

Fair

15x–35x

EV/EBITDA

24.0x

PEG

0.08

What's Good / What's Bad

🟢 What's Going Well4

Margins are improving
EBITDA margin is up from 6.4% to 20.9% over 3 years.
Return on equity is rising
ROE has improved from 4.1% to 14.2%.
Return on capital is rising
ROCE has improved from 10.5% to 18.0%.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

3 items require attention · 3 high

🔴Free cash flow negative for 4 yearsFinancial
The business has not covered its capital spending from operations for several years running, which has to be funded externally.
🔴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.
🔴Receivables growing faster than salesFinancial
Receivables up 1492% against revenue up 426% — sales are being booked faster than they are collected.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 18.0% 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.
Margin expansion has further to run
EBITDA margin has risen from 6.4% to 20.9%. 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 58% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
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 1492% against revenue up 426%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
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 55% a year✓ 73.9% CAGR
Latest reported year was 27.0%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 19%✓ 20.9%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹23 Cr
Profit that never becomes cash eventually stops being profit.
4ROCE stays above 15%✓ 18.0%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.
5Valuation vs its own median of 31.1x✓ 28.1x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

8 / 10 checks passed

✓ Strong return on equity (ROE ≥ 15%)
✓ Strong return on capital employed (ROCE ≥ 15%)
✓ Healthy net margin (≥ 10%)
✗ Generates positive free cash flow
✓ 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

5 good · 5 neutral · 1 weak

Market Cap

₹349 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

28.1x

Fair

Fairly valued against the generic band

P/B Ratio

4.96x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹18.39

Profitable

Profitable on a per-share basis

ROE

21.6%

Strong

Strong capital efficiency

ROCE

18.0%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

Not available

No data

Source didn't return this field

Revenue Growth (YoY)

27.0%

Healthy

Healthy top-line growth

Profit Growth (YoY)

66.1%

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

-₹28 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

ROA

10.2%

Good

Assets are working hard

Operating Margin

14.1%

Average

Average margins

Net Margin

14.5%

Good

Strong bottom-line conversion

Current Ratio

3.36

Comfortable

Healthy short-term liquidity

52W Range Position

97%

Near high

Near its 52-week high

Technical Snapshot

SMA 20 / SMA 50

474.1 / 429.7

Bullish alignment (short > long)

RSI (14)

61.1

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹13 Cr	₹20 Cr	₹53 Cr	₹69 Cr	+73.9%
EBITDA	₹1 Cr	₹6 Cr	₹10 Cr	₹14 Cr	+158.0%
EBITDA Margin	6.4%	31.6%	19.2%	20.9%	—
PAT (Net Profit)	₹0 Cr	₹3 Cr	₹6 Cr	₹10 Cr	+369.1%
EPS	₹0.14	₹4.94	₹9.31	—	—
ROE	4.1%	58.4%	28.6%	14.2%	—
ROCE	10.5%	66.7%	44.1%	18.0%	—
Total Debt	₹8 Cr	₹16 Cr	₹11 Cr	—	—
Free Cash Flow	-₹3 Cr	-₹8 Cr	-₹2 Cr	-₹23 Cr	—

🟢 Revenue has grown at 73.9% a year over 3 years.

🟢 EBITDA has grown at 158.0% a year over 3 years.

🟢 EBITDA Margin has risen from 6.4% to 20.9% over 3 years (+14.5 pts).

🟢 PAT (Net Profit) has grown at 369.1% a year over 3 years.

🟢 ROE has risen from 4.1% to 14.2% over 3 years (+10.1 pts).

🟢 ROCE has risen from 10.5% to 18.0% over 3 years (+7.5 pts).

Balance Sheet & Cash Flow — FY2026

Total Assets

₹91 Cr

Total Liabilities

₹21 Cr

Cash & Equivalents

₹5 Cr

Operating Cash Flow

-₹5 Cr

Capex

-₹19 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

68.3%

Peer Comparison

Company	P/E	ROE
SIEMENS LTD	88.8x	10.5%
ABB INDIA LIMITED	92.6x	19.1%
LARSEN & TOUBRO LTD.	30.1x	15.2%
HAVELLS INDIA LIMITED	43.5x	17.1%

Recent News

1 positive5 general

ADMACH SYSTEMS LIMITED 52 Week High Streak: Near Peak

Univest, 16 Oct

Admach Systems wins Rs 7.92 crore steel-equipment order, order book rises to Rs 76.25 crore

Dalal Street Investment Journal, 16 OctOrder win

🟢Potentially positiveOrder wins add to future revenue, though the effect depends on the contract's size against annual sales and on when it is executed.

Admach Systems secures Rs 53.1 lakh order for NDT machine setup

scanx.trade, 29 Sept

ADMACH SYSTEMS LIMITED Share Price

Upstox, 05 May

Weak market debut: Admach Systems shares list at 20% discount to SME IPO price

Moneycontrol.com, 31 Dec

ADMACH SYSTEMS Lower Circuit Today: Price, Data and Peers

Univest, 05 Oct

Watch Items

Trading very close to its 52-week high — momentum-driven entries here carry more mean-reversion risk.
Cross-check against the company's latest quarterly filing / investor presentation before acting.
1 metric couldn't be retrieved for this stock — this is more common for smaller or thinly-covered listings.

DalalBaazaar Thesis

StrongBusiness Quality · Financial Health · Growth · Profitability

MiddlingValuation

WeakRisk

Points for each in the Score ↑

Good business at a fair price

A sound business at a reasonable valuation. Suitable for a long-term holding, with the valuation and the direction of margins worth watching rather than the business itself. 3 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 ↑