Birla Precision Technologies Limited

Industrials — Tools & Accessories · NSE

₹53.10−₹0.63 (−1.17%)

DalalBaazaar Score

42 / 100

🟡 Moderate

Verdict

CAUTION

Risk

Moderate

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

In simple words: The business is earning a fairly low return on the money invested in it, with modest growth. Nothing on this snapshot stands out as an immediate concern — the usual checks on business quality and management still apply.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 8:28 pm

Understanding the Business

Company site ↗

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

What does this company do?

Birla Precision Technologies Limited manufactures and sells machine tools and accessories, precision and automotive components, and castings in India, Japan, the United States, and internationally. It operates through Tooling, Automotive Components, and Other segments.

IndustryTools & Accessories

SectorIndustrials

Employees655

Annual revenue₹235 Cr

How does it make money?

Turns over ₹235 Cr a year. Of every ₹100 of sales, about ₹5 reaches shareholders as profit, with ₹11 left at the operating level before interest, tax and depreciation. Each of its 655 employees supports ₹35.9 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹35.9 lakh

Who are its competitors?

The closest listed comparisons in its industry are LARSEN & TOUBRO LTD., SIEMENS LTD, ABB 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 11.1% 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 ROE15.2%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved -6% while net margin moved -15% 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-6%

Margin effect-15%

DalalBaazaar Score

42/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 1.9% a year
✗ Profit has declined at 7.1% a year

Quality vs. Valuation

Company Quality

39/ 100

Weak

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

Valuation

69/ 100

Cheap

What you are being asked to pay, ignoring how good the business is.

Optically cheap, but the underlying business scores poorly. Cheap-and-weak is what a value trap looks like from the outside — the low price may be deserved.

Historical Valuation

Current P/E

26.3x

Sector Median

88.8x

median of 3 sector peers

🟢Against its sector it trades 70% below the peer median of 88.8x.

vs. its own history

Not enough price and earnings history

vs. sector peers

Cheap

88.8x median of 3 peers · -70%

vs. generic bands

Fair

15x–35x

EV/EBITDA

14.9x

PEG

—

What's Good / What's Bad

🟢 What's Going Well3

Margins are improving
EBITDA margin is up from 9.2% to 11.2% over 3 years.
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 10.7% to 6.4% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 15.7% to 11.1% — often a sign of competition or overexpansion.

Red Flags

2 items require attention · 2 high

🔴Debt has risen sharplyFinancial
Total debt is up 64% over 3 years, from ₹32 Cr to ₹53 Cr.
🔴Receivables growing faster than salesFinancial
Receivables up 60% against revenue up -6% — sales are being booked faster than they are collected.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 9.2% to 11.2%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Cheaper than its peers
It trades 70% 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 ₹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?

Sales are being booked faster than collected
Receivables are up 60% against revenue up -6%. 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 10.7% to 6.4%. 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.
Several serious flags at once
2 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

1EBITDA margin holds above 9%✓ 11.2%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA stays below 2x✗ 2.0x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
3Free cash flow remains positive✓ ₹8 Cr
Profit that never becomes cash eventually stops being profit.
4ROCE stays above 8%✓ 11.1%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.
5Interest cover stays above 4x✓ 4.4x
How much operating profit can fall before interest stops being comfortably covered.

Investment Checklist

7 / 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

4 good · 6 neutral · 1 weak

Market Cap

₹363 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

26.3x

Fair

Fairly valued against the generic band

P/B Ratio

2.05x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹2.02

Profitable

Profitable on a per-share basis

ROE

6.4%

Weak

Weak capital efficiency

ROCE

11.1%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.30x

Low

Conservative leverage

Revenue Growth (YoY)

1.4%

Modest

Modest growth

Profit Growth (YoY)

79.5%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.09%

Modest

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

Free Cash Flow

₹8 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

2.5%

Weak

Thin margins leave little room for error

Net Margin

5.6%

Average

Average bottom-line conversion

Current Ratio

1.40

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.54

Defensive

Steadier than the market

52W Range Position

63%

Mid-range

Technical Snapshot

RSI (14)

44.8

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹249 Cr	₹226 Cr	₹208 Cr	₹235 Cr	-1.9%
EBITDA	₹23 Cr	₹27 Cr	₹20 Cr	₹26 Cr	+4.7%
EBITDA Margin	9.2%	11.9%	9.7%	11.2%	—
PAT (Net Profit)	₹14 Cr	₹9 Cr	₹6 Cr	₹11 Cr	-7.1%
EPS	₹2.16	₹1.43	₹0.89	₹1.65	-8.6%
ROE	10.7%	6.3%	3.7%	6.4%	—
ROCE	15.7%	13.0%	8.0%	11.1%	—
Total Debt	₹32 Cr	₹44 Cr	₹56 Cr	₹53 Cr	+18.0%
Free Cash Flow	-₹5 Cr	-₹20 Cr	₹12 Cr	₹8 Cr	—

🟡 Revenue has been broadly flat over 3 years (-1.9% a year).

🟢 EBITDA has grown at 4.7% a year over 3 years.

🟢 EBITDA Margin has risen from 9.2% to 11.2% over 3 years (+2.0 pts).

🔴 PAT (Net Profit) has shrunk at 7.1% a year over 3 years.

🔴 EPS has shrunk at 8.6% a year over 3 years.

🔴 ROE has fallen from 10.7% to 6.4% over 3 years (-4.3 pts).

🔴 ROCE has fallen from 15.7% to 11.1% over 3 years (-4.7 pts).

🔴 Total Debt has grown at 18.0% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹5 Cr to ₹8 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹320 Cr

Total Liabilities

₹145 Cr

Cash & Equivalents

₹26 Cr

Operating Cash Flow

₹35 Cr

Capex

-₹27 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

63.7%

Corporate Actions

Dividend Rate

₹0.05

Ex-Dividend Date

03 Sept 2026

Peer Comparison

Company	P/E	ROE
LARSEN & TOUBRO LTD.	30.1x	15.2%
SIEMENS LTD	88.8x	10.5%
ABB INDIA LIMITED	92.6x	19.1%

Recent News

1 positive2 mixed3 general

Birla Precision Technologies shareholders approve FY26 results, board changes

scanx.trade, 17 OctResults

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

Birla Precision Technologies Lower Circuit Today

Univest, 08 Oct

Birla Precision Technologies Ltd. Peer Comparison – Compare with Others

Value Research, 29 Aug

Birla Precision Technologies Ltd. (BIRLAPREC) Share Price Rises 10.68% Today

Univest, 21 AugPrice 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.

Birla Precision Technologies Ltd. Share Price Live Today

CNBC TV18, 03 Jan

Vadilal, Nirlon, Action Construction Equipment, Birla Precision Technologies among 12 stocks to turn ex-dividend tomorrow

Business Today, 02 SeptCapital return

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

Watch Items

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

DalalBaazaar Thesis

StrongFinancial Health

MiddlingValuation · Risk

WeakBusiness Quality · Growth · Profitability

Points for each in the Score ↑

Cheap, but for a reason

The low price is the whole case here, and the business underneath scores poorly. Cheap-and-weak is what a value trap looks like from the outside — it needs a specific reason the numbers are about to improve, not just the observation that they are low. 2 high-severity red flags sit above this conclusion and should be read first.

1 of 5 tripwires tripped — Debt / EBITDA stays below 2x · see Key things to watch ↑