Axtel Industries Limited

Industrials — Specialty Industrial Machinery · NSE

₹421.50+₹7.60 (+1.84%)

DalalBaazaar Score

73 / 100

🟢 Good

Verdict

REASONABLE

Risk

Moderate

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

In simple words: Strong business and financial position, with modest growth. Nothing on this snapshot stands out as an immediate concern — the usual checks on business quality and management still apply.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 8:28 pm

Understanding the Business

Company site ↗

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

What does this company do?

Axtel Industries Limited manufactures, supplies, and sells process engineering equipment and turnkey systems for food processing and pharmaceutical industries in India and internationally.

IndustrySpecialty Industrial Machinery

SectorIndustrials

Employees242

Annual revenue₹215 Cr

How does it make money?

Turns over ₹215 Cr a year. Of every ₹100 of sales, about ₹14 reaches shareholders as profit, with ₹20 left at the operating level before interest, tax and depreciation. Each of its 242 employees supports ₹89.0 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹89.0 lakh

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?The numbers suggest a real one

ROCE has stayed above 15% in every year available and stands at 31.8%. Returns that high normally get competed away; when they persist, something is protecting them, and its ROE of 25.0% against a peer median of 17.1% is consistent with that. What that something is — brand, scale, switching costs, regulation — the accounts cannot tell you.

Peer median ROE17.1%

What has been driving growth?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved +30% while net margin moved +38% 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+30%

Margin effect+38%

DalalBaazaar Score

73/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of 0.10 — historically steadier than the index
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ Profits have swung sharply from year to year — earnings are hard to forecast

Quality vs. Valuation

Company Quality

83/ 100

Excellent

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

Valuation

61/ 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

21.8x

Sector Median

66.2x

median of 4 sector peers

🟢Against its sector it trades 67% below the peer median of 66.2x.

vs. its own history

Not enough price and earnings history

vs. sector peers

Cheap

66.2x median of 4 peers · -67%

vs. generic bands

Fair

15x–35x

EV/EBITDA

15.7x

PEG

1.01

What's Good / What's Bad

🟢 What's Going Well6

Margins are improving
EBITDA margin is up from 14.6% to 19.7% over 3 years.
Cash generation is improving
Free cash flow is up 74% over 3 years.
Return on equity is rising
ROE has improved from 18.0% to 25.0%.
Return on capital is rising
ROCE has improved from 23.6% to 31.8%.
High return on capital employed
ROCE of 31.8% 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

No automated checks triggered

None of the automated financial checks below were triggered on the years of data available. That is not the same as a clean bill of health — see what could not be checked.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 31.8% 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 14.6% to 19.7%. 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 67% 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?

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.

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

1EBITDA margin holds above 18%✓ 19.7%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Revenue growth stays above 7% a year✓ 9.2% CAGR
Latest reported year was 18.7%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
3Free cash flow remains positive✓ ₹43 Cr
Profit that never becomes cash eventually stops being profit.
4ROCE stays above 29%✓ 31.8%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

9 / 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
✓ 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

Price history

Quick Metrics

5 good · 5 neutral · 1 weak

Market Cap

₹681 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

21.8x

Fair

Fairly valued against the generic band

P/B Ratio

5.46x

Rich

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

EPS (TTM)

₹19.32

Profitable

Profitable on a per-share basis

ROE

25.0%

Strong

Strong capital efficiency

ROCE

31.8%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

Not available

No data

Source didn't return this field

Revenue Growth (YoY)

18.7%

Healthy

Healthy top-line growth

Profit Growth (YoY)

3.4%

Modest

Slow profit growth

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

₹43 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

4.4%

Weak

Thin margins leave little room for error

Net Margin

13.6%

Good

Strong bottom-line conversion

Current Ratio

2.09

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.10

Defensive

Steadier than the market

52W Range Position

49%

Mid-range

Technical Snapshot

RSI (14)

33.5

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹165 Cr	₹223 Cr	₹168 Cr	₹215 Cr	+9.2%
EBITDA	₹24 Cr	₹44 Cr	₹25 Cr	₹42 Cr	+20.5%
EBITDA Margin	14.6%	19.5%	14.6%	19.7%	—
PAT (Net Profit)	₹17 Cr	₹32 Cr	₹18 Cr	₹31 Cr	+21.7%
EPS	₹10.71	₹19.89	₹11.16	₹19.29	+21.7%
ROE	18.0%	28.4%	14.7%	25.0%	—
ROCE	23.6%	36.9%	18.9%	31.8%	—
Free Cash Flow	₹25 Cr	₹28 Cr	₹25 Cr	₹43 Cr	+20.2%

🟢 Revenue has grown at 9.2% a year over 3 years.

🟢 EBITDA has grown at 20.5% a year over 3 years.

🟢 EBITDA Margin has risen from 14.6% to 19.7% over 3 years (+5.0 pts).

🟢 PAT (Net Profit) has grown at 21.7% a year over 3 years.

🟢 EPS has grown at 21.7% a year over 3 years.

🟢 ROE has risen from 18.0% to 25.0% over 3 years (+7.0 pts).

🟢 ROCE has risen from 23.6% to 31.8% over 3 years (+8.2 pts).

🟢 Free Cash Flow has grown at 20.2% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹216 Cr

Total Liabilities

₹91 Cr

Total Debt

—

Cash & Equivalents

₹16 Cr

Operating Cash Flow

₹51 Cr

Capex

-₹8 Cr

Shareholding (proxy)

Institutional Holding

1.5%

Insider Holding

66.1%

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 mixed5 general

AXTEL Stock Price and Chart — NSE:AXTEL

TradingView, 18 Aug

Axtel Industries Ltd is Rated Sell

MarketsMojo, 17 Oct

Axtel Industries Share Price Falls 10.6%; Full Analysis

Univest, 06 AugPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

One Axtel Industries Insider Has Reduced Their Stake

Simply Wall Street, 12 Sept

Compare with AXTEL INDUSTRIES

Equitymaster, 28 Sept

Axtel Industries Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 27 Aug

Watch Items

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.

All 4 tripwires holding · see Key things to watch ↑