AXISCADES Technologies Limited

Industrials — Engineering & Construction · NSE

₹2,122.10+₹101.60 (+5.03%)

DalalBaazaar Score

50 / 100

🟡 Moderate

Verdict

CAUTION

Risk

High

Driven by negative free cash flow, small-cap size, which brings sharper price swings, a very high earnings multiple, which leaves little margin for disappointment.

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, 6:02 pm

Caution warranted. Multiple fundamental metrics — flagged in red below — point to either valuation stretch, leverage risk, or weakening profitability. This doesn't mean avoid the stock outright, but it does mean the burden of proof is on the growth story to justify the current price.

Understanding the Business

Company site ↗

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

What does this company do?

AXISCADES Technologies Limited operates as an engineering solutions company in Europe, the United States, the Asia Pacific, and Canada. It operates through Technology Services and Solutions, and Defence segments.

IndustryEngineering & Construction

SectorIndustrials

Employees2,902

Annual revenue₹1,157 Cr

How does it make money?

Turns over ₹1,157 Cr a year. Of every ₹100 of sales, about ₹6 reaches shareholders as profit, with ₹16 left at the operating level before interest, tax and depreciation. Each of its 2,902 employees supports ₹39.9 lakh of revenue a year, the signature of a people-led business.

EBITDA margin16.3%

Net margin6.2%

Revenue / employee₹39.9 lakh

Who are its competitors?

The closest listed comparisons in its industry are LARSEN & TOUBRO LTD., ADANI PORT & SEZ LTD, SIEMENS LTD. These are the companies its valuation and returns are measured against elsewhere in this report.

LARSEN & TOUBRO LTD.P/E 30.1x · ROE 15.2%

ADANI PORT & SEZ LTDP/E 29.9x · ROE 14.1%

SIEMENS LTDP/E 88.8x · ROE 10.5%

What is its competitive advantage?Some evidence

ROCE of 15.6% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

ROCE15.6%

ROE9.9%

Peer median ROE14.1%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +42% while net margin moved -1066% 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+42%

Margin effect-1066%

DalalBaazaar Score

50/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ P/E of 206.2x is demanding — it needs sustained high growth to justify
✗ P/E is 123% above its own historical median of 92.6x — expensive by its own standards
✗ P/B of 12.43x is a steep premium to book

Quality vs. Valuation

Company Quality

57/ 100

Average

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

Valuation

23/ 100

Expensive

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

206.2x

2Y Median

92.6x

28 monthly readings · mean 100.6x · range 57.2x–191.3x

Sector Median

30.1x

median of 3 sector peers

⚠️Current valuation is approximately 123% above its 2y median of 92.6x. Paying more than usual needs a reason — faster growth, a better balance sheet, or a re-rating you believe in.

⚠️Against its sector it trades 585% above the peer median of 30.1x.

vs. its own history

Expensive

92.6x median over 28 months · +123%

vs. sector peers

Expensive

30.1x median of 3 peers · +585%

vs. generic bands

Expensive

Above 35x

P/E (Trailing)

206.2x

P/B

12.43x

EV/EBITDA

49.8x

PEG

—

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well2

Return on equity is rising
ROE has improved from -1.5% to 9.9%.
Return on capital is rising
ROCE has improved from 9.8% to 15.6%.

🔴 What Needs Attention4

Margins are compressing
EBITDA margin has slipped from 19.0% to 16.3% over 3 years.
Free cash flow is negative
The business is not currently covering its capital spending from operations.
Receivables growing faster than sales
Receivables are up 130% against revenue growth of 42% — customers are taking longer to pay.
Valuation above its historical average
At 206.2x the stock trades 123% above its own median of 92.6x.

Red Flags

3 items require attention · 1 high · 2 watch

🔴Receivables growing faster than salesFinancial
Receivables up 130% against revenue up 42% — sales are being booked faster than they are collected.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹136 Cr in the latest year.
🟡Margins are compressingFinancial
EBITDA margin is down 2.7 points over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

No clear supporting case emerges from the available numbers.

🔴 Bear CaseWhat could go wrong?

Margins are being competed away
EBITDA margin has fallen from 19.0% to 16.3%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Sales are being booked faster than collected
Receivables are up 130% against revenue up 42%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
The price already assumes success
The stock trades 123% above its own median multiple. At this level the business has to deliver just to stand still, and a stumble is repriced twice — lower earnings on a lower multiple.
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
Small 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 9% a year✓ 12.5% CAGR
Latest reported year was -24.8%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 14%✓ 16.3%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA stays below 2x✗ 2.1x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
4Free cash flow remains positive✗ -₹136 Cr
Profit that never becomes cash eventually stops being profit.
5ROCE stays above 13%✓ 15.6%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

5 / 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 · 3 neutral · 5 weak

Market Cap

₹9,026 Cr

Small Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

206.2x

Expensive

Expensive — verify against sector peers

P/B Ratio

12.43x

Rich

Steep premium to book — needs high, durable returns to justify

EPS (TTM)

₹10.29

Profitable

Profitable on a per-share basis

ROE

9.9%

Moderate

Moderate capital efficiency

ROCE

15.6%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.53x

Low

Conservative leverage

Revenue Growth (YoY)

-24.8%

Shrinking

Sales are contracting

Profit Growth (YoY)

-4.0%

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

-₹136 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

CMP

₹2,122.1

Operating Margin

-0.0%

Weak

Thin margins leave little room for error

Net Margin

2.9%

Weak

Very little revenue reaches the bottom line

Current Ratio

1.53

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.39

Defensive

Steadier than the market

52W Range Position

82%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

2055.3 / 1816.5

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

61.7

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹814 Cr	₹952 Cr	₹1,029 Cr	₹1,157 Cr	+12.5%
EBITDA	₹155 Cr	₹136 Cr	₹143 Cr	₹189 Cr	+6.8%
EBITDA Margin	19.0%	14.3%	13.9%	16.3%	—
PAT (Net Profit)	-₹5 Cr	₹33 Cr	₹75 Cr	₹72 Cr	—
EPS	₹-1.37	₹7.74	₹17.22	₹16.83	—
ROE	-1.5%	5.6%	11.5%	9.9%	—
ROCE	9.8%	13.3%	14.1%	15.6%	—
Total Debt	₹346 Cr	₹319 Cr	₹258 Cr	₹388 Cr	+3.9%
Free Cash Flow	₹60 Cr	₹59 Cr	₹50 Cr	-₹136 Cr	—

🟢 Revenue has grown at 12.5% a year over 3 years.

🟢 EBITDA has grown at 6.8% a year over 3 years.

🔴 EBITDA Margin has fallen from 19.0% to 16.3% over 3 years (-2.7 pts).

🟢 PAT (Net Profit) has turned positive, from -₹5 Cr to ₹72 Cr.

🟢 EPS has turned positive, from ₹-1.37 to ₹16.83.

🟢 ROE has risen from -1.5% to 9.9% over 3 years (+11.4 pts).

🟢 ROCE has risen from 9.8% to 15.6% over 3 years (+5.8 pts).

🔴 Total Debt has grown at 3.9% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹60 Cr to -₹136 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹1,466 Cr

Total Liabilities

₹732 Cr

Total Debt

₹388 Cr

Cash & Equivalents

₹18 Cr

Operating Cash Flow

-₹1 Cr

Capex

-₹134 Cr

Shareholding (proxy)

Institutional Holding

7.1%

Insider Holding

7.0%

Peer Comparison

Company	P/E	ROE
LARSEN & TOUBRO LTD.	30.1x	15.2%
ADANI PORT & SEZ LTD	29.9x	14.1%
SIEMENS LTD	88.8x	10.5%

Recent News

6 general

AXISCADES TECHNOLOGIES Share Price

Upstox, 16 Oct

AXISCADES targets ₹1,377 crore revenue in FY27, eyes ₹9,000 cr by FY30

scanx.trade, 18 Oct

AXISCADES sells engineering business to Akkodis for $30.63 million

scanx.trade, 18 Oct

Axiscades Tech share price locked in 10% upper circuit | What's driving the stock and what lies ahead?

TradingView, 29 Sept

AXISCADES Technologies Share Price Hits 10% Upper Circuit Today — Here's Why

NDTV Profit, 29 Sept

Axiscades Tech share price locked in 10% upper circuit | What’s driving the stock and what lies ahead?

Livemint, 29 Sept

Watch Items

Revenue growth is negative (-24.8%) 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

🟢Business QualityStrong13/20

🟡Financial HealthAdequate11.8/20

🟡GrowthModest10.6/20

🟡ProfitabilityModerate7.1/15

🔴ValuationDemanding3.3/15

🟡RiskModerate4.5/10

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. 1 high-severity red flag sits above this conclusion and should be read first.

This thesis breaks if

✓Revenue growth stays above 9% a year12.5% CAGR
✓EBITDA margin holds above 14%16.3%
✗Debt / EBITDA stays below 2x2.1x
✗Free cash flow remains positive-₹136 Cr
✓ROCE stays above 13%15.6%