BEW Engineering Limited

Sector n/a · NSE

₹1,434.00−₹26.00 (−1.78%)

DalalBaazaar Score

45 / 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. The direction of profits 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

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

How does it make money?

Turns over ₹186 Cr a year. Of every ₹100 of sales, about ₹2 reaches shareholders as profit, with ₹5 left at the operating level before interest, tax and depreciation.

What is its competitive advantage?Little sign of one

Returns on capital of 5.4% 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.

What has been driving growth?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved +76% while net margin moved -71% 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+76%

Margin effect-71%

DalalBaazaar Score

45/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ 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

18/ 100

Expensive

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.

vs. its own history

Not enough price and earnings history

vs. sector peers

Not enough peers with a usable P/E

vs. generic bands

No P/E available

EV/EBITDA

198.5x

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 27.5% to 2.7% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 34.9% to 5.4% — often a sign of competition or overexpansion.

Red Flags

6 items require attention · 2 high · 4 watch

🔴Significant margin compressionFinancial
EBITDA margin has fallen 8.5 points, from 13.7% to 5.2%.
🔴Receivables growing faster than salesFinancial
Receivables up 404% against revenue up 76% — sales are being booked faster than they are collected.
🟡Debt is increasingFinancial
Total debt is up 49% over 3 years.
🟡Interest coverage is deterioratingFinancial
Cover has fallen from 5.6x to 2.6x.
🟡Profit is decliningFinancial
Net profit is down 48% over 3 years.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 27% over 3 years — each existing share owns a smaller slice of the company.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Self-funding with balance-sheet headroom
Positive free cash flow of ₹8 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 13.7% to 5.2%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
The debt load needs earnings to hold up
Debt is 6.4x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
Sales are being booked faster than collected
Receivables are up 404% against revenue up 76%. 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 27.5% to 2.7%. 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

1Revenue growth stays above 16% a year✓ 20.7% CAGR
Latest reported year was 38.2%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 3%✓ 5.2%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA falls below 3x✗ 6.4x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
4Interest cover stays above 3x✗ 2.6x
How much operating profit can fall before interest stops being comfortably covered.
5Free cash flow remains positive✓ ₹8 Cr
Profit that never becomes cash eventually stops being profit.

Investment Checklist

5 / 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
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✗ Profit growing year-over-year
✓ Short-term technical trend isn't bearish

Price history

Quick Metrics

3 good · 5 neutral · 3 weak

Market Cap

₹1,875 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

Not available

No data

Source didn't return this field

P/B Ratio

Not available

No data

Source didn't return this field

EPS (TTM)

Not available

No data

Source didn't return this field

ROE

2.7%

Weak

Weak capital efficiency

ROCE

5.4%

Weak

Low return on total capital employed

Debt/Equity

0.44x

Low

Conservative leverage

Revenue Growth (YoY)

38.2%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-68.9%

Falling

Profits are shrinking

Dividend Yield

None

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

Free Cash Flow

₹8 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Gross Margin

12.6%

Proxy

Operating margin unavailable — showing gross margin instead

Net Margin

2.0%

Weak

Very little revenue reaches the bottom line

Current Ratio

1.71

Comfortable

Healthy short-term liquidity

Technical Snapshot

SMA 20 / SMA 50

58.6 / 53.7

Bullish alignment (short > long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

16.7

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹106 Cr	₹120 Cr	₹134 Cr	₹186 Cr	+20.7%
EBITDA	₹14 Cr	₹24 Cr	₹22 Cr	₹10 Cr	-12.4%
EBITDA Margin	13.7%	19.6%	16.0%	5.2%	—
PAT (Net Profit)	₹7 Cr	₹14 Cr	₹12 Cr	₹4 Cr	-19.8%
EPS	₹7.1	₹11.64	₹9.3	—	—
ROE	27.5%	19.1%	8.8%	2.7%	—
ROCE	34.9%	26.5%	12.9%	5.4%	—
Total Debt	₹42 Cr	₹66 Cr	₹58 Cr	₹63 Cr	+14.1%
Free Cash Flow	-₹2 Cr	-₹22 Cr	-₹50 Cr	₹8 Cr	—

🟢 Revenue has grown at 20.7% a year over 3 years.

🔴 EBITDA has shrunk at 12.4% a year over 3 years.

🔴 EBITDA Margin has fallen from 13.7% to 5.2% over 3 years (-8.5 pts).

🔴 PAT (Net Profit) has shrunk at 19.8% a year over 3 years.

🔴 ROE has fallen from 27.5% to 2.7% over 3 years (-24.8 pts).

🔴 ROCE has fallen from 34.9% to 5.4% over 3 years (-29.6 pts).

🔴 Total Debt has grown at 14.1% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹2 Cr to ₹8 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹269 Cr

Total Liabilities

₹127 Cr

Cash & Equivalents

₹4 Cr

Operating Cash Flow

₹28 Cr

Capex

-₹19 Cr

Recent News

6 general

BEW Engineering confirms no encumbrance on promoter shares in FY26

scanx.trade, 20 Jun

BEW Engineering Ltd. Upper Circuit Today: Price, Data and Peers

Univest, 23 Sept

BEW Engineering Ltd. Key Financial Ratios – Valuation, Profitability & More

Value Research, 30 Aug

BEW Engineering bulk deal: Ashish Kacholia exits SME company as stock slumps 44% in a year

The Economic Times, 18 Mar

Ashish Kacholia sells 3.55% stake in Cosmic CRF, almost exits BEW Engineering

Moneycontrol.com, 18 Mar

Ashish Kacholia sells Cosmic CRF stake, exits BEW Engineering

CNBC TV18, 18 Mar

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.
Sector/industry classification unavailable — verify manually for peer comparison.
3 metrics couldn't be retrieved for this stock — this is more common for smaller or thinly-covered listings.
RSI is in oversold territory — could mean either a bargain or a stock still falling for good reason. Check the 'why' before assuming reversal.

DalalBaazaar Thesis

StrongFinancial Health

MiddlingGrowth · Valuation

WeakBusiness Quality · Profitability · 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. 2 high-severity red flags sit above this conclusion and should be read first.

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