Indef Manufacturing Limited

Industrials — Farm & Heavy Construction Machinery · NSE

₹203.88+₹4.33 (+2.17%)

DalalBaazaar Score

49 / 100

🟡 Moderate

Verdict

CAUTION

Risk

High

Driven by high debt relative to equity, micro-cap size, which brings thin liquidity, falling profits.

In simple words: Reasonable but unspectacular business quality, but sales are shrinking. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:03 pm

Understanding the Business

Company site ↗

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

What does this company do?

Indef Manufacturing Limited provides material handling solutions in India.

IndustryFarm & Heavy Construction Machinery

SectorIndustrials

Annual revenue₹206 Cr

How does it make money?

Turns over ₹206 Cr a year. Of every ₹100 of sales, about ₹11 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 MAHINDRA & MAHINDRA LTD, ASHOK LEYLAND LTD, TATA MOTORS LIMITED, LARSEN & TOUBRO LTD.. 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 ROE24.4%

DalalBaazaar Score

49/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ High leverage magnifies any downturn in earnings
✗ Profits have swung sharply from year to year — earnings are hard to forecast

Quality vs. Valuation

Company Quality

51/ 100

Average

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

Valuation

52/ 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

27.8x

1.3Y Median

28.0x

16 monthly readings · mean 28.0x · range 19.8x–35.9x

Sector Median

27.6x

median of 4 sector peers

🟡Currently trading close to its 1.3y median of 28.0x — the market is paying about what it usually pays for this company.

🟡Against its sector it is priced broadly in line with the peer median of 27.6x.

vs. its own history

Fair

28.0x median over 16 months · -1%

vs. sector peers

Fair

27.6x median of 4 peers · +1%

vs. generic bands

Fair

15x–35x

EV/EBITDA

26.6x

PEG

—

What's Good / What's Bad

🟢 What's Going Well1

Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.

🔴 What Needs Attention0

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

Red Flags

1 item require attention · 1 high

🔴High leverageFinancial
Debt/Equity of 1.82x — earnings must service borrowings before shareholders see anything.

Investment Thesis

🟢 Bull CaseWhat could make this work?

No clear supporting case emerges from the available numbers.

🔴 Bear CaseWhat could go wrong?

Leverage amplifies any setback
Debt/Equity of 1.82x. Interest is payable whether or not the business has a good year.
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 10%✓ 11.9%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Free cash flow remains positive✓ ₹18 Cr
Profit that never becomes cash eventually stops being profit.
3Debt / EBITDA stays below 2x✓ 0.2x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
4ROCE stays above 8%✓ 8.8%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.
5Valuation vs its own median of 28.0x✓ 27.8x today
A re-rating above its own history needs a reason; without one it is just a higher price.

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

2 good · 6 neutral · 3 weak

Market Cap

₹652 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

27.8x

Fair

Fairly valued against the generic band

P/B Ratio

2.42x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹7.34

Profitable

Profitable on a per-share basis

ROE

8.8%

Moderate

Moderate capital efficiency

ROCE

8.8%

Moderate

Moderate return on the capital in the business

Debt/Equity

1.82x

High

High leverage

Revenue Growth (YoY)

-13.2%

Shrinking

Sales are contracting

Profit Growth (YoY)

-2.8%

Falling

Profits are shrinking

Dividend Yield

0.98%

Modest

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

Free Cash Flow

₹18 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

-6.9%

Weak

Thin margins leave little room for error

Net Margin

11.6%

Good

Strong bottom-line conversion

Current Ratio

1.34

Comfortable

Healthy short-term liquidity

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

208.3 / 216.9

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

33.3

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	—	—	₹177 Cr	₹206 Cr	—
EBITDA	—	-₹0 Cr	₹33 Cr	₹25 Cr	—
EBITDA Margin	—	—	18.7%	11.9%	—
PAT (Net Profit)	—	-₹0 Cr	₹34 Cr	₹24 Cr	—
EPS	—	₹-0.01	₹10.68	₹7.38	—
ROE	—	—	13.5%	8.8%	—
ROCE	—	—	15.8%	8.8%	—
Total Debt	—	₹0 Cr	₹4 Cr	₹5 Cr	—
Free Cash Flow	-₹0 Cr	-₹0 Cr	-₹4 Cr	₹18 Cr	—

🟢 EBITDA has turned positive, from -₹0 Cr to ₹25 Cr.

🔴 EBITDA Margin has fallen from 18.7% to 11.9% over 3 years (-6.7 pts).

🟢 PAT (Net Profit) has turned positive, from -₹0 Cr to ₹24 Cr.

🟢 EPS has turned positive, from ₹-0.01 to ₹7.38.

🔴 ROE has fallen from 13.5% to 8.8% over 3 years (-4.7 pts).

🔴 ROCE has fallen from 15.8% to 8.8% over 3 years (-7.0 pts).

🟢 Free Cash Flow has turned positive, from -₹0 Cr to ₹18 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹332 Cr

Total Liabilities

₹63 Cr

Cash & Equivalents

₹6 Cr

Operating Cash Flow

₹24 Cr

Capex

-₹5 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

77.5%

Corporate Actions

Dividend Rate

₹2

Ex-Dividend Date

05 Aug 2026

Peer Comparison

Company	P/E	ROE
MAHINDRA & MAHINDRA LTD	17.8x	19.7%
ASHOK LEYLAND LTD	25.2x	24.4%
TATA MOTORS LIMITED	37.1x	32.8%
LARSEN & TOUBRO LTD.	30.1x	15.2%

Recent News

2 positive1 mixed1 negative2 general

Only One Day Left To Cash In On Indef Manufacturing's (NSE:BAJAJINDEF) Dividend

Simply Wall Street, 03 AugCapital return

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

Indef Manufacturing closes trading window from Oct 1 for Q2FY27 results

scanx.trade, 29 SeptResults

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

Indef Manufacturing Q4 Net Profit Drops 33% to ₹6.7 Cr despite 28% Revenue Growth

Sahi, 25 MayResults

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

INDEF MANUFACTURING LTD 52 Week Low Streak And Valuation

Univest, 08 Oct

Indef Manufacturing shareholders approve ₹2 dividend and board changes at AGM

scanx.trade, 14 AugCapital return

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

Indef Manufacturing Share Price Forecast: 3 Year Outlook to 2030

Univest, 17 Jul

Watch Items

Revenue growth is negative (-13.2%) 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.

DalalBaazaar Thesis

MiddlingFinancial Health · Growth · Profitability · Valuation

WeakBusiness Quality · Risk

Points for each in the Score ↑

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.

All 5 tripwires holding · see Key things to watch ↑