Bajel Projects Limited

Utilities — Utilities - Regulated Electric · NSE

₹167.00+₹9.92 (+6.32%)

DalalBaazaar Score

49 / 100

🟡 Moderate

Verdict

CAUTION

Risk

High

Driven by negative free cash flow, micro-cap size, which brings thin liquidity, a very high earnings multiple, which leaves little margin for disappointment.

In simple words: The business is earning a fairly low return on the money invested in it, 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 Bajel Projects Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Bajel Projects Limited engages in the engineering, procurement, and construction (EPC) for power transmission and distribution projects in India and internationally.

IndustryUtilities - Regulated Electric

SectorUtilities

Employees895

Annual revenue₹2,759 Cr

How does it make money?

Turns over ₹2,759 Cr a year. Of every ₹100 of sales, about ₹1 reaches shareholders as profit, with ₹4 left at the operating level before interest, tax and depreciation. Each of its 895 employees supports ₹3.08 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹3.08 Cr

Who are its competitors?

The closest listed comparisons in its industry are NTPC LTD, POWER GRID CORP. LTD., TATA POWER CO LTD, ADANI POWER 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 11.7% 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 ROE15.8%

What is the outlook?

1 analysts covering the stock expect revenue to grow about 32.5% and earnings to grow about 80.7% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+32.5%

Est. earnings growth+80.7%

Analysts1

What has been driving growth?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved +370% while net margin moved -373% 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+370%

Margin effect-373%

DalalBaazaar Score

49/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ ROE of 2.7% is weak

Quality vs. Valuation

Company Quality

49/ 100

Average

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

Valuation

47/ 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

93.8x

2Y Median

151.6x

28 monthly readings · mean 337.5x · range 94.8x–738.0x

Sector Median

20.6x

median of 4 sector peers

🟢Current valuation is approximately 38% below its 2y median of 151.6x. 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 356% above the peer median of 20.6x.

vs. its own history

Cheap

151.6x median over 28 months · -38%

vs. sector peers

Expensive

20.6x median of 4 peers · +356%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

19.3x

PEG

2.27

What's Good / What's Bad

🟢 What's Going Well2

Margins are improving
EBITDA margin is up from 2.2% to 4.3% over 3 years.
Return on capital is rising
ROCE has improved from 1.2% to 11.7%.

🔴 What Needs Attention0

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

Red Flags

4 items require attention · 3 high · 1 watch

🔴Debt has risen sharplyFinancial
Total debt is up 50761% over 3 years, from ₹1 Cr to ₹367 Cr.
🔴Thin interest coverageFinancial
Operating profit covers interest only 1.4x — little room if earnings dip.
🔴Profit up while operating cash flow fallsFinancial
Reported profit rose but cash generated by operations declined — worth checking whether earnings are being supported by non-cash items or working capital.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹13 Cr in the latest year.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 2.2% to 4.3%. 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 38% 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.

🔴 Bear CaseWhat could go wrong?

The debt load needs earnings to hold up
Debt is 3.1x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
A premium to the sector to defend
It trades 356% above the peer median. That premium needs a reason that persists, or it closes.
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.
Several serious flags at once
3 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 51% a year✓ 67.5% CAGR
Latest reported year was -6.7%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 2%✓ 4.3%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA falls below 3x✗ 3.1x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
4Free cash flow remains positive✗ -₹13 Cr
Profit that never becomes cash eventually stops being profit.
5Interest cover stays above 3x✗ 1.4x
How much operating profit can fall before interest stops being comfortably covered.

Investment Checklist

5 / 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

3 good · 4 neutral · 4 weak

Market Cap

₹1,932 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

93.8x

Expensive

Expensive — verify against sector peers

P/B Ratio

2.58x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹1.78

Profitable

Profitable on a per-share basis

ROE

2.7%

Weak

Weak capital efficiency

ROCE

11.7%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.49x

Low

Conservative leverage

Revenue Growth (YoY)

-6.7%

Shrinking

Sales are contracting

Profit Growth (YoY)

41.4%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.36%

Modest

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

Free Cash Flow

-₹13 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

P/E (Forward)

11.1x

Improving

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

Operating Margin

2.4%

Weak

Thin margins leave little room for error

Net Margin

0.8%

Weak

Very little revenue reaches the bottom line

Current Ratio

1.20

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

1.02

Market-like

Moves roughly in line with the market

52W Range Position

40%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

165.2 / 177.7

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

42.2

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹587 Cr	₹1,140 Cr	₹2,563 Cr	₹2,759 Cr	+67.5%
EBITDA	₹13 Cr	₹32 Cr	₹89 Cr	₹118 Cr	+108.8%
EBITDA Margin	2.2%	2.8%	3.5%	4.3%	—
PAT (Net Profit)	-₹2 Cr	₹4 Cr	₹15 Cr	₹20 Cr	—
EPS	₹-0.14	₹0.37	₹1.33	₹1.74	—
ROE	-0.3%	0.8%	2.3%	2.7%	—
ROCE	1.2%	2.9%	11.1%	11.7%	—
Total Debt	₹1 Cr	₹15 Cr	₹376 Cr	₹367 Cr	+698.2%
Free Cash Flow	₹8 Cr	₹168 Cr	₹35 Cr	-₹13 Cr	—

🟢 Revenue has grown at 67.5% a year over 3 years.

🟢 EBITDA has grown at 108.8% a year over 3 years.

🟢 EBITDA Margin has risen from 2.2% to 4.3% over 3 years (+2.1 pts).

🟢 PAT (Net Profit) has turned positive, from -₹2 Cr to ₹20 Cr.

🟢 EPS has turned positive, from ₹-0.14 to ₹1.74.

🟢 ROE has risen from -0.3% to 2.7% over 3 years (+3.0 pts).

🟢 ROCE has risen from 1.2% to 11.7% over 3 years (+10.4 pts).

🔴 Total Debt has grown at 698.2% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹8 Cr to -₹13 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹2,538 Cr

Total Liabilities

₹1,791 Cr

Cash & Equivalents

₹24 Cr

Operating Cash Flow

₹21 Cr

Capex

-₹34 Cr

Shareholding (proxy)

Institutional Holding

9.2%

Insider Holding

62.8%

Corporate Actions

Dividend Rate

₹0.6

Ex-Dividend Date

31 Jul 2026

Analyst Consensus

Recommendations

1 Buy · 0 Hold · 0 Sell

Target Price (Mean)

₹280

+67.7% vs CMP

Target Range

₹280 – ₹280

Peer Comparison

Company	P/E	ROE
NTPC LTD	11.0x	13.7%
POWER GRID CORP. LTD.	14.6x	15.8%
TATA POWER CO LTD	29.3x	9.8%
ADANI POWER LTD	26.5x	21.9%

Recent News

3 positive2 mixed1 general

Bajel Projects Share Price Target 2027 to 2030: Analyst Outlook

Univest, 17 AugAnalyst view

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

Price Action: Bajel Projects shares rise 2% on EPC order win; Avenue Supermarts falls 2% after earnings

Moneycontrol.com, 12 OctOrder win

🟢Potentially positiveOrder wins add to future revenue, though the effect depends on the contract's size against annual sales and on when it is executed.

Bajel Projects Ltd. Key Financial Ratios – Valuation, Profitability & More

Value Research, 30 Aug

Bajel Projects Formalises Egypt Transmission Pact; Shares Jump Over 4%

HDFC Sky, 22 JulPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Bajel Projects Jumps 6% After Tata Power Order Win

Equitypandit, 12 OctOrder win

🟢Potentially positiveOrder wins add to future revenue, though the effect depends on the contract's size against annual sales and on when it is executed.

Bajel Projects shares jump 14% after over ₹700 crore ‘ultra mega’ order book update from Maharashtra State; check details

Upstox, 15 MarOrder win

🟢Potentially positiveOrder wins add to future revenue, though the effect depends on the contract's size against annual sales and on when it is executed.

Watch Items

Revenue growth is negative (-6.7%) 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

StrongGrowth

MiddlingBusiness Quality · Financial Health · Valuation

WeakProfitability · 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. 3 high-severity red flags sit above this conclusion and should be read first.

3 of 5 tripwires tripped — Debt / EBITDA falls below 3x; Free cash flow remains positive; Interest cover stays above 3x · see Key things to watch ↑