Adtech Systems Limited

Industrials — Building Products & Equipment · BSE

₹39.01+₹0.27 (+0.70%)

DalalBaazaar Score

44 / 100

🟡 Moderate

Verdict

CAUTION

Risk

Moderate

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

In simple words: The business is earning a fairly low return on the money invested in it, 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, 7:45 pm

Understanding the Business

Company site ↗

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

What does this company do?

Adtech Systems Limited provides a range of electronic security solutions in India.

IndustryBuilding Products & Equipment

SectorIndustrials

Annual revenue₹46 Cr

How does it make money?

Turns over ₹46 Cr a year. Of every ₹100 of sales, about ₹7 reaches shareholders as profit, with ₹12 left at the operating level before interest, tax and depreciation.

Who are its competitors?

The closest listed comparisons in its industry are LARSEN & TOUBRO LTD., SIEMENS LTD, ABB 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 8.8% 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 ROE15.2%

What has been driving growth?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved -24% while net margin moved +26% 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-24%

Margin effect+26%

DalalBaazaar Score

44/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 8.8% a year
✗ Profit has declined at 1.6% a year
✗ Profit fell 21.8% in the latest year

Quality vs. Valuation

Company Quality

39/ 100

Weak

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

Valuation

69/ 100

Cheap

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

Optically cheap, but the underlying business scores poorly. Cheap-and-weak is what a value trap looks like from the outside — the low price may be deserved.

Historical Valuation

Current P/E

20.8x

3Y Median

19.6x

30 monthly readings · mean 20.5x · range 13.0x–48.1x

Sector Median

88.8x

median of 3 sector peers

🟡Currently trading close to its 3y median of 19.6x — the market is paying about what it usually pays for this company.

🟢Against its sector it trades 77% below the peer median of 88.8x.

vs. its own history

Fair

19.6x median over 30 months · +6%

vs. sector peers

Cheap

88.8x median of 3 peers · -77%

vs. generic bands

Fair

15x–35x

EV/EBITDA

8.2x

PEG

—

What's Good / What's Bad

🟢 What's Going Well1

Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention1

Return on capital is falling
ROCE has declined from 13.7% to 8.8% — often a sign of competition or overexpansion.

Red Flags

1 item require attention · 1 watch

🟡Margins are compressingFinancial
EBITDA margin is down 2.8 points over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Cheaper than its peers
It trades 77% 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?

Margins are being competed away
EBITDA margin has fallen from 14.5% to 11.8%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
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.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1EBITDA margin holds above 10%✓ 11.8%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Free cash flow remains positive✓ ₹4 Cr
Profit that never becomes cash eventually stops being profit.
3ROCE stays above 8%✓ 8.8%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.
4Valuation vs its own median of 19.6x✓ 20.8x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

4 / 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

3 good · 5 neutral · 3 weak

Market Cap

₹46 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

20.8x

Fair

Fairly valued against the generic band

P/B Ratio

Not available

No data

Source didn't return this field

EPS (TTM)

₹1.88

Profitable

Profitable on a per-share basis

ROE

6.3%

Weak

Weak capital efficiency

ROCE

8.8%

Moderate

Moderate return on the capital in the business

Debt/Equity

Not available

No data

Source didn't return this field

Revenue Growth (YoY)

-2.9%

Shrinking

Sales are contracting

Profit Growth (YoY)

-21.8%

Falling

Profits are shrinking

Dividend Yield

2.82%

Healthy

Meaningful cash return while you hold the stock

Free Cash Flow

₹4 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

0.0%

Weak

Thin margins leave little room for error

Net Margin

0.0%

Weak

Very little revenue reaches the bottom line

Current Ratio

4.40

Comfortable

Healthy short-term liquidity

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

42.0 / 47.2

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

29.6

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹61 Cr	₹55 Cr	₹48 Cr	₹46 Cr	-8.8%
EBITDA	₹9 Cr	₹7 Cr	₹8 Cr	₹5 Cr	-15.0%
EBITDA Margin	14.5%	13.5%	15.7%	11.8%	—
PAT (Net Profit)	₹4 Cr	₹4 Cr	₹4 Cr	₹3 Cr	-1.6%
EPS	₹3.02	₹3.48	₹3.68	₹2.87	-1.6%
ROE	7.9%	8.5%	8.4%	6.3%	—
ROCE	13.7%	12.8%	11.3%	8.8%	—
Total Debt	₹12 Cr	₹4 Cr	—	—	—
Free Cash Flow	₹3 Cr	₹8 Cr	₹6 Cr	₹4 Cr	+3.5%

🔴 Revenue has shrunk at 8.8% a year over 3 years.

🔴 EBITDA has shrunk at 15.0% a year over 3 years.

🔴 EBITDA Margin has fallen from 14.5% to 11.8% over 3 years (-2.8 pts).

🟡 PAT (Net Profit) has been broadly flat over 3 years (-1.6% a year).

🟡 EPS has been broadly flat over 3 years (-1.6% a year).

🔴 ROE has fallen from 7.9% to 6.3% over 3 years (-1.5 pts).

🔴 ROCE has fallen from 13.7% to 8.8% over 3 years (-5.0 pts).

🟢 Free Cash Flow has grown at 3.5% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹67 Cr

Total Liabilities

₹13 Cr

Cash & Equivalents

₹2 Cr

Operating Cash Flow

₹5 Cr

Capex

-₹1 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

84.7%

Corporate Actions

Dividend Rate

₹1.1

Ex-Dividend Date

24 Sept 2026

Peer Comparison

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

Recent News

2 positive2 mixed2 general

Adtech Systems Ltd Peer Comparison – Compare with Others

Value Research, 04 Sept

Adtech Systems declares ₹1.10 per share dividend for FY26

scanx.trade, 30 SeptCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

Adtech : Reconciliation of Share Capital Audit Report for quarter ended September 30,2026

www.marketscreener.com, 13 OctResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Dividend record date 23 Sept alert: Last call for investors today! Buy Arfin India, Engineers India, others to qualify

Livemint, 23 SeptCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

Adtech Systems reports standalone net loss of Rs 0.52 crore in the June 2026 quarter

Business Standard, 14 AugResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Adtech Systems Ltd Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 01 Sept

Watch Items

Revenue growth is negative (-2.9%) on the latest reported period — check if this is one-off or a trend.
Trading very close to its 52-week low — worth checking whether this reflects a temporary setback or a structural problem.
Cross-check against the company's latest quarterly filing / investor presentation before acting.
2 metrics couldn't be retrieved for this stock — this is more common for smaller or thinly-covered listings.
RSI is in oversold territory — could mean either a bargain or a stock still falling for good reason. Check the 'why' before assuming reversal.

DalalBaazaar Thesis

StrongFinancial Health · Valuation

MiddlingRisk

WeakBusiness Quality · Growth · Profitability

Points for each in the Score ↑

Cheap, but for a reason

The low price is the whole case here, and the business underneath scores poorly. Cheap-and-weak is what a value trap looks like from the outside — it needs a specific reason the numbers are about to improve, not just the observation that they are low.

All 4 tripwires holding · see Key things to watch ↑