Batliboi Limited

Industrials — Specialty Industrial Machinery · NSE

₹94.88+₹2.37 (+2.56%)

DalalBaazaar Score

44 / 100

🟡 Moderate

Verdict

CAUTION

Risk

Moderate

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

In simple words: The business is earning a fairly low return on the money invested in it, though profits are falling even as sales grow. Valuation is currently 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 Batliboi Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Batliboi Limited, together with its subsidiaries, manufactures and trades machine tools and textile engineering machines in India and internationally.

IndustrySpecialty Industrial Machinery

SectorIndustrials

Employees458

Annual revenue₹438 Cr

How does it make money?

Turns over ₹438 Cr a year. Of every ₹100 of sales, about ₹1 reaches shareholders as profit, with ₹6 left at the operating level before interest, tax and depreciation. Each of its 458 employees supports ₹95.6 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹95.6 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?Little sign of one

Returns on capital of 3.9% 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?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved +74% while net margin moved -69% 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+74%

Margin effect-69%

DalalBaazaar Score

44/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Beta of 1.22 — amplifies market moves in both directions
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal

Quality vs. Valuation

Company Quality

48/ 100

Average

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

Valuation

56/ 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

48.7x

Sector Median

66.2x

median of 4 sector peers

🟢Against its sector it trades 26% 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 · -26%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

18.0x

PEG

—

What's Good / What's Bad

🟢 What's Going Well2

Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 7.8% to 2.5% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 7.0% to 3.9% — often a sign of competition or overexpansion.

Red Flags

5 items require attention · 1 high · 4 watch

🔴Receivables growing faster than salesFinancial
Receivables up 226% against revenue up 74% — sales are being booked faster than they are collected.
🟡Interest coverage is deterioratingFinancial
Cover has fallen from 5.6x to 2.6x.
🟡Profit is decliningFinancial
Net profit is down 46% over 3 years.
🟡Margins are compressingFinancial
EBITDA margin is down 3.0 points over 3 years.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 63% over 3 years — each existing share owns a smaller slice of the company.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Cheaper than its peers
It trades 26% 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 ₹6 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 9.3% to 6.4%. 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 226% against revenue up 74%. 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 7.8% to 2.5%. 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

1Revenue growth stays above 15% a year✓ 20.3% CAGR
Latest reported year was 80.2%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 4%✓ 6.4%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA stays below 2x✗ 2.8x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
4Interest cover stays above 3x✗ 2.6x
How much operating profit can fall before interest stops being comfortably covered.
5Free cash flow remains positive✓ ₹6 Cr
Profit that never becomes cash eventually stops being profit.

Investment Checklist

6 / 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

4 good · 3 neutral · 4 weak

Market Cap

₹448 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

48.7x

Expensive

Expensive — verify against sector peers

P/B Ratio

1.94x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹1.95

Profitable

Profitable on a per-share basis

ROE

2.5%

Weak

Weak capital efficiency

ROCE

3.9%

Weak

Low return on total capital employed

Debt/Equity

0.37x

Low

Conservative leverage

Revenue Growth (YoY)

80.2%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-57.9%

Falling

Profits are shrinking

Dividend Yield

0.63%

Modest

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

Free Cash Flow

₹6 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

1.0%

Weak

Thin margins leave little room for error

Net Margin

1.9%

Weak

Very little revenue reaches the bottom line

Current Ratio

1.51

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

1.22

Market-like

Moves roughly in line with the market

52W Range Position

87%

Near high

Near its 52-week high

Technical Snapshot

SMA 20 / SMA 50

88.4 / 87.8

Bullish alignment (short > long)

RSI (14)

68.9

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹252 Cr	₹413 Cr	₹411 Cr	₹438 Cr	+20.3%
EBITDA	₹24 Cr	₹33 Cr	₹28 Cr	₹28 Cr	+6.0%
EBITDA Margin	9.3%	7.9%	6.9%	6.4%	—
PAT (Net Profit)	₹11 Cr	₹13 Cr	₹13 Cr	₹6 Cr	-18.7%
EPS	₹3.57	₹3.14	₹2.86	₹1.36	-27.5%
ROE	7.8%	8.5%	6.0%	2.5%	—
ROCE	7.0%	10.4%	7.0%	3.9%	—
Total Debt	₹69 Cr	₹84 Cr	₹83 Cr	₹78 Cr	+4.2%
Free Cash Flow	-₹1 Cr	₹1 Cr	-₹14 Cr	₹6 Cr	—

🟢 Revenue has grown at 20.3% a year over 3 years.

🟢 EBITDA has grown at 6.0% a year over 3 years.

🔴 EBITDA Margin has fallen from 9.3% to 6.4% over 3 years (-3.0 pts).

🔴 PAT (Net Profit) has shrunk at 18.7% a year over 3 years.

🔴 EPS has shrunk at 27.5% a year over 3 years.

🔴 ROE has fallen from 7.8% to 2.5% over 3 years (-5.3 pts).

🔴 ROCE has fallen from 7.0% to 3.9% over 3 years (-3.1 pts).

🔴 Total Debt has grown at 4.2% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹1 Cr to ₹6 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹470 Cr

Total Liabilities

₹239 Cr

Cash & Equivalents

₹22 Cr

Operating Cash Flow

₹23 Cr

Capex

-₹17 Cr

Shareholding (proxy)

Institutional Holding

2.6%

Insider Holding

74.2%

Corporate Actions

Dividend Rate

₹0.6

Ex-Dividend Date

31 Jul 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 positive4 general

Is It Worth Considering Batliboi Limited (NSE:BATLIBOI) For Its Upcoming Dividend?

Simply Wall Street, 27 JulCapital return

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

Batliboi Ltd. Share Price: Capital Goods Sector Context

Univest, 06 Aug

Batliboi board to approve preferential issue and securities conversion

scanx.trade, 03 Oct

Batliboi Ltd (BATLIBOI.NS) Gains 3.98% to ₹88.41, Approaches Key Resistance at ₹92.83 - Initial Balance

siam.in, 30 Aug

Batliboi soars after securing Rs 52 crore order from SAEL Industries

Business Standard, 21 Jul

Penny Stock Below Rs 100 Jumps 11% After Industrial Engineering Company Secures Rs 52 Crore Solar Sector Order from SAEL Industries

Dalal Street Investment Journal, 21 JulOrder win

🟢Potentially positiveAn order or contract win, which adds to future revenue. How much depends on its size against annual sales and on when it is executed.

Watch Items

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

DalalBaazaar Thesis

StrongFinancial Health

MiddlingGrowth

WeakBusiness Quality · Profitability · Valuation · 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.

2 of 5 tripwires tripped — Debt / EBITDA stays below 2x; Interest cover stays above 3x · see Key things to watch ↑