The Anup Engineering Limited

Industrials — Specialty Industrial Machinery · NSE

₹1,487.10+₹4.10 (+0.28%)

DalalBaazaar Score

70 / 100

🟢 Good

Verdict

NEUTRAL

Risk

Moderate

Driven by negative free cash flow, micro-cap size, which brings thin liquidity, falling profits.

In simple words: Strong business and financial position, but sales are shrinking. Cash generation is currently 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 The Anup Engineering Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

The Anup Engineering Limited, together with its subsidiaries, provides engineering products in India and internationally. The company is also involved in manufacturing and fabrication of process equipment.

IndustrySpecialty Industrial Machinery

SectorIndustrials

Employees391

Annual revenue₹830 Cr

How does it make money?

Turns over ₹830 Cr a year. Of every ₹100 of sales, about ₹13 reaches shareholders as profit, with ₹22 left at the operating level before interest, tax and depreciation. Each of its 391 employees supports ₹2.12 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹2.12 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 19.9% 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 is the outlook?

2 analysts covering the stock expect revenue to grow about 16.5% and earnings to grow about 55.9% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+16.5%

Est. earnings growth+55.9%

Analysts2

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +105% while net margin moved +5% 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+105%

Margin effect+5%

DalalBaazaar Score

70/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of -0.02 — historically steadier than the index
✗ 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

65/ 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

35.2x

3Y Median

47.6x

40 monthly readings · mean 47.4x · range 26.6x–70.5x

Sector Median

66.2x

median of 4 sector peers

🟢Current valuation is approximately 26% below its 3y median of 47.6x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

🟢Against its sector it trades 47% below the peer median of 66.2x.

vs. its own history

Cheap

47.6x median over 40 months · -26%

vs. sector peers

Cheap

66.2x median of 4 peers · -47%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

16.9x

PEG

1.22

What's Good / What's Bad

🟢 What's Going Well5

Margins are improving
EBITDA margin is up from 20.5% to 22.1% over 3 years.
Return on equity is rising
ROE has improved from 11.8% to 16.0%.
Return on capital is rising
ROCE has improved from 14.6% to 19.9%.
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 Attention0

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

Red Flags

3 items require attention · 2 high · 1 watch

🔴Debt has risen sharplyFinancial
Total debt is up 220% over 3 years, from ₹34 Cr to ₹110 Cr.
🔴Receivables growing faster than salesFinancial
Receivables up 180% against revenue up 105% — sales are being booked faster than they are collected.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹51 Cr in the latest year.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 19.9% 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 20.5% to 22.1%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Priced below its own history
The stock trades 26% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Cheaper than its peers
It trades 47% 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 180% against revenue up 105%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
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
2 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 20% a year✓ 27.1% CAGR
Latest reported year was -28.5%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 20%✓ 22.1%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹51 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.6x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 17%✓ 19.9%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

8 / 12 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
✓ Analyst consensus isn't majority-sell
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

4 good · 4 neutral · 3 weak

Market Cap

₹2,979 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

35.2x

Fair

Fairly valued against the generic band

P/B Ratio

4.31x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹42.2

Profitable

Profitable on a per-share basis

ROE

16.0%

Strong

Strong capital efficiency

ROCE

19.9%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.18x

Low

Conservative leverage

Revenue Growth (YoY)

-28.5%

Shrinking

Sales are contracting

Profit Growth (YoY)

-97.9%

Falling

Profits are shrinking

Dividend Yield

0.81%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

-₹51 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

P/E (Forward)

27.0x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

1.6%

Weak

Thin margins leave little room for error

Net Margin

11.0%

Good

Strong bottom-line conversion

Current Ratio

2.47

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

-0.02

Defensive

Steadier than the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

1575.1 / 1706.1

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

21.4

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹404 Cr	₹540 Cr	₹729 Cr	₹830 Cr	+27.1%
EBITDA	₹83 Cr	₹131 Cr	₹168 Cr	₹183 Cr	+30.3%
EBITDA Margin	20.5%	24.2%	23.0%	22.1%	—
PAT (Net Profit)	₹51 Cr	₹103 Cr	₹118 Cr	₹110 Cr	+29.0%
EPS	₹25.84	₹51.85	₹59.04	₹54.99	+28.6%
ROE	11.8%	19.6%	19.3%	16.0%	—
ROCE	14.6%	21.1%	22.7%	19.9%	—
Total Debt	₹34 Cr	₹20 Cr	₹32 Cr	₹110 Cr	+47.4%
Free Cash Flow	-₹45 Cr	₹126 Cr	-₹52 Cr	-₹51 Cr	—

🟢 Revenue has grown at 27.1% a year over 3 years.

🟢 EBITDA has grown at 30.3% a year over 3 years.

🟢 EBITDA Margin has risen from 20.5% to 22.1% over 3 years (+1.6 pts).

🟢 PAT (Net Profit) has grown at 29.0% a year over 3 years.

🟢 EPS has grown at 28.6% a year over 3 years.

🟢 ROE has risen from 11.8% to 16.0% over 3 years (+4.2 pts).

🟢 ROCE has risen from 14.6% to 19.9% over 3 years (+5.3 pts).

🔴 Total Debt has grown at 47.4% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹971 Cr

Total Liabilities

₹280 Cr

Cash & Equivalents

₹4 Cr

Operating Cash Flow

₹2 Cr

Capex

-₹53 Cr

Shareholding (proxy)

Institutional Holding

17.4%

Insider Holding

46.2%

Corporate Actions

Dividend Rate

₹12

Ex-Dividend Date

14 Aug 2026

Analyst Consensus

Recommendations

1 Buy · 1 Hold · 0 Sell

Target Price (Mean)

₹2,225

+49.6% vs CMP

Target Range

₹1,600 – ₹2,850

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

3 mixed1 negative2 general

Anup Engineering (NSEI:ANUP) Stock Forecast & Analyst Predictions

Simply Wall Street, 07 OctAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Anup Engineering vs Nifty 50: 1Y Return -34.60% vs -9.64%

Univest, 14 Oct

how Fair Value analysis flagged Anup Engineering’s 47% decline By Investing.com

Investing.com India, 09 Aug

Anup Engineering Shares Tank 14% As Q1 Net Profit Falls 98%, Revenue Drops To Rs 125 Crore

NDTV Profit, 06 AugResults

🔴Potentially negativeReported deterioration, which feeds the growth and margin inputs on this page directly.

The Anup Engineering Q1 Consolidated Net Profit At 5.7M Rupees Versus 263M YoY

Sahi, 06 AugResults

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

ANUP Forecast — Price Target — Prediction for 2027

TradingView, 25 JunAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Watch Items

Revenue growth is negative (-28.5%) 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.
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

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. 2 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 ↑