Ameya Precision Engineers Limited

Sector n/a · NSE

₹121.15+₹5.75 (+4.98%)

DalalBaazaar Score

66 / 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 modest growth. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 8:27 pm

Understanding the Business

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

How does it make money?

Turns over ₹39 Cr a year. Of every ₹100 of sales, about ₹14 reaches shareholders as profit, with ₹22 left at the operating level before interest, tax and depreciation.

What is its competitive advantage?Some evidence

ROCE of 23.0% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +43% while net margin moved +111% 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+43%

Margin effect+111%

DalalBaazaar Score

66/ 100

Good

Weighted across six categories. Every point is explained below.

✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

74/ 100

Good

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

Valuation

60/ 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.

vs. its own history

Not enough price and earnings history

vs. sector peers

Not enough peers with a usable P/E

vs. generic bands

No P/E available

EV/EBITDA

9.9x

PEG

—

What's Good / What's Bad

🟢 What's Going Well6

Margins are improving
EBITDA margin is up from 11.7% to 22.0% over 3 years.
Debt is being paid down
Total debt is down 78% over 3 years.
Return on equity is rising
ROE has improved from 9.5% to 16.9%.
Return on capital is rising
ROCE has improved from 12.1% to 23.0%.
High return on capital employed
ROCE of 23.0% is the mark of a business that converts capital into profit efficiently.
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

2 items require attention · 1 high · 1 watch

🔴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.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹0 Cr in the latest year.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 23.0% 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 11.7% to 22.0%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Deleveraging frees up earnings
Debt is down 78% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
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?

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

1Revenue growth stays above 10% a year✓ 12.7% CAGR
Latest reported year was 3.8%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 20%✓ 22.0%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹0 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.0x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 20%✓ 23.0%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

8 / 9 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
✓ Short-term technical trend isn't bearish

Price history

Quick Metrics

4 good · 6 neutral · 1 weak

Market Cap

₹91 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

Not available

No data

Source didn't return this field

P/B Ratio

Not available

No data

Source didn't return this field

EPS (TTM)

Not available

No data

Source didn't return this field

ROE

16.9%

Strong

Strong capital efficiency

ROCE

23.0%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.54x

Low

Conservative leverage

Revenue Growth (YoY)

3.8%

Modest

Modest growth

Profit Growth (YoY)

26.1%

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

-₹0 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Gross Margin

50.3%

Proxy

Operating margin unavailable — showing gross margin instead

Net Margin

14.2%

Good

Strong bottom-line conversion

Current Ratio

3.88

Comfortable

Healthy short-term liquidity

Technical Snapshot

SMA 20 / SMA 50

158.9 / 131.0

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

68.0

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹27 Cr	₹33 Cr	₹38 Cr	₹39 Cr	+12.7%
EBITDA	₹3 Cr	₹5 Cr	₹6 Cr	₹9 Cr	+39.4%
EBITDA Margin	11.7%	15.8%	16.8%	22.0%	—
PAT (Net Profit)	₹2 Cr	₹3 Cr	₹4 Cr	₹6 Cr	+44.6%
EPS	₹2.7	₹3.95	₹5.91	—	—
ROE	9.5%	12.9%	16.2%	16.9%	—
ROCE	12.1%	18.0%	21.7%	23.0%	—
Total Debt	₹1 Cr	₹0 Cr	—	₹0 Cr	-39.9%
Free Cash Flow	-₹3 Cr	₹6 Cr	-₹0 Cr	-₹0 Cr	—

🟢 Revenue has grown at 12.7% a year over 3 years.

🟢 EBITDA has grown at 39.4% a year over 3 years.

🟢 EBITDA Margin has risen from 11.7% to 22.0% over 3 years (+10.4 pts).

🟢 PAT (Net Profit) has grown at 44.6% a year over 3 years.

🟢 ROE has risen from 9.5% to 16.9% over 3 years (+7.4 pts).

🟢 ROCE has risen from 12.1% to 23.0% over 3 years (+10.9 pts).

🟢 Total Debt has shrunk at 39.9% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹40 Cr

Total Liabilities

₹7 Cr

Cash & Equivalents

₹5 Cr

Operating Cash Flow

₹2 Cr

Capex

-₹2 Cr

Recent News

6 general

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Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.
Sector/industry classification unavailable — verify manually for peer comparison.
3 metrics 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. 1 high-severity red flag sits above this conclusion and should be read first.

1 of 5 tripwires tripped — Free cash flow remains positive · see Key things to watch ↑