Bajaj Steel Industries Limited

Industrials — Specialty Industrial Machinery · NSE

₹327.40+₹0.05 (+0.02%)

DalalBaazaar Score

52 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

Low

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

In simple words: Reasonable but unspectacular business quality, though profits are falling even as sales grow. The direction of profits is 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 Bajaj Steel Industries Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Bajaj Steel Industries Limited manufactures and sells cotton ginning and pressing machinery in India.

IndustrySpecialty Industrial Machinery

SectorIndustrials

Employees310

Annual revenue₹515 Cr

How does it make money?

Turns over ₹515 Cr a year. Of every ₹100 of sales, about ₹7 reaches shareholders as profit, with ₹14 left at the operating level before interest, tax and depreciation. Each of its 310 employees supports ₹1.66 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹1.66 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?Little sign of one

Returns on capital of 12.1% 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 ROE17.1%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved -4% while net margin moved -43% 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-4%

Margin effect-43%

DalalBaazaar Score

52/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 1.4% a year
✗ Profit has declined at 18.2% a year
✗ Profit fell 56.2% in the latest year

Quality vs. Valuation

Company Quality

47/ 100

Average

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

Valuation

73/ 100

Cheap

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

22.8x

Sector Median

66.2x

median of 4 sector peers

🟢Against its sector it trades 66% 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 · -66%

vs. generic bands

Fair

15x–35x

EV/EBITDA

9.6x

PEG

—

What's Good / What's Bad

🟢 What's Going Well3

Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.
Very low debt
Debt/Equity of 0.15x leaves the balance sheet with plenty of headroom.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 24.7% to 8.7% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 33.9% to 12.1% — often a sign of competition or overexpansion.

Red Flags

5 items require attention · 1 high · 4 watch

🔴Inventory building faster than salesFinancial
Inventory up 67% against revenue up -4% — stock may not be moving.
🟡Debt is increasingFinancial
Total debt is up 46% over 3 years.
🟡Profit is decliningFinancial
Net profit is down 45% over 3 years.
🟡Margins are compressingFinancial
EBITDA margin is down 4.5 points over 3 years.
🟡Receivables growing faster than salesFinancial
Receivables up 45% against revenue up -4% — sales are being booked faster than they are collected.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Cheaper than its peers
It trades 66% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Self-funding with balance-sheet headroom
Positive free cash flow of ₹16 Cr alongside low debt means growth, buybacks or dividends need no outside money — and a downturn can be absorbed rather than refinanced.
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?

Margins are being competed away
EBITDA margin has fallen from 18.3% to 13.8%. 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 45% against revenue up -4%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
Returns on shareholder capital are falling
ROE has dropped from 24.7% to 8.7%. Each rupee of equity earns less than it did, so profit growth increasingly depends on raising more capital rather than on the existing base working harder.
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 12%✓ 13.8%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Free cash flow remains positive✓ ₹16 Cr
Profit that never becomes cash eventually stops being profit.
3Debt / EBITDA stays below 2x✓ 0.9x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
4ROCE stays above 9%✓ 12.1%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

6 / 10 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

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)

22.8x

Fair

Fairly valued against the generic band

P/B Ratio

1.28x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹14.34

Profitable

Profitable on a per-share basis

ROE

8.7%

Moderate

Moderate capital efficiency

ROCE

12.1%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.15x

Low

Conservative leverage

Revenue Growth (YoY)

11.9%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-56.2%

Falling

Profits are shrinking

Dividend Yield

0.31%

Modest

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

Free Cash Flow

₹16 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

0.8%

Weak

Thin margins leave little room for error

Net Margin

5.4%

Average

Average bottom-line conversion

Current Ratio

1.69

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.18

Defensive

Steadier than the market

52W Range Position

12%

Near low

Near its 52-week low

Technical Snapshot

RSI (14)

38.1

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹538 Cr	₹551 Cr	₹573 Cr	₹515 Cr	-1.4%
EBITDA	₹99 Cr	₹95 Cr	₹106 Cr	₹71 Cr	-10.3%
EBITDA Margin	18.3%	17.3%	18.6%	13.8%	—
PAT (Net Profit)	₹68 Cr	₹59 Cr	₹84 Cr	₹37 Cr	-18.2%
EPS	₹32.36	₹7.11	₹40.27	₹18.03	-17.7%
ROE	24.7%	17.8%	21.8%	8.7%	—
ROCE	33.9%	23.0%	27.5%	12.1%	—
Total Debt	₹43 Cr	₹64 Cr	₹65 Cr	₹63 Cr	+13.4%
Free Cash Flow	-₹21 Cr	-₹17 Cr	-₹5 Cr	₹16 Cr	—

🟡 Revenue has been broadly flat over 3 years (-1.4% a year).

🔴 EBITDA has shrunk at 10.3% a year over 3 years.

🔴 EBITDA Margin has fallen from 18.3% to 13.8% over 3 years (-4.5 pts).

🔴 PAT (Net Profit) has shrunk at 18.2% a year over 3 years.

🔴 EPS has shrunk at 17.7% a year over 3 years.

🔴 ROE has fallen from 24.7% to 8.7% over 3 years (-16.0 pts).

🔴 ROCE has fallen from 33.9% to 12.1% over 3 years (-21.8 pts).

🔴 Total Debt has grown at 13.4% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹21 Cr to ₹16 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹699 Cr

Total Liabilities

₹275 Cr

Cash & Equivalents

₹57 Cr

Operating Cash Flow

₹78 Cr

Capex

-₹63 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

63.3%

Corporate Actions

Dividend Rate

₹1

Ex-Dividend Date

16 Sept 2026

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

2 mixed1 negative3 general

Bajaj Steel Industries (BAJAJST.NS) Slips 2.14% to ₹324.3 as Stock Hovers Between Key Support and Resistance - Range Breakout

siam.in, 08 Oct

Bajaj Steel Q4 Net Profit Falls 83% to ₹2.9 Cr as Margins Contract 1,094 bps

Sahi, 27 MayResults

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

Bajaj Steel Industries Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 27 Aug

Bajaj Steel Industries Ltd Q1 FY27 Results Preview

Univest, 01 JulResults

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

Bajaj Steel Industries discloses voting results of 65th AGM

scanx.trade, 24 SeptResults

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

Bajaj Steel Consolidated June 2026 Net Sales at Rs 120.35 crore, up 11.92% Y-o-Y

Moneycontrol.com, 24 Aug

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongFinancial Health · Valuation

MiddlingBusiness Quality · Risk

WeakGrowth · Profitability

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 4 tripwires holding · see Key things to watch ↑