Brady & Morris Engineering Company Limited

Industrials — Specialty Industrial Machinery · BSE

₹611.50−₹23.50 (−3.70%)

DalalBaazaar Score

47 / 100

🟡 Moderate

Verdict

CAUTION

Risk

High

Driven by high debt relative to equity, micro-cap size, which brings thin liquidity, falling profits.

In simple words: Reasonable but unspectacular business quality, but sales are shrinking. Debt 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

Company site ↗

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

What does this company do?

Brady & Morris Engineering Company Limited manufactures and sells cranes and material handling equipment in India.

IndustrySpecialty Industrial Machinery

SectorIndustrials

Annual revenue₹73 Cr

How does it make money?

Turns over ₹73 Cr a year. Of every ₹100 of sales, about ₹8 reaches shareholders as profit, with ₹11 left at the operating level before interest, tax and depreciation.

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 14.2% 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?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +21% while net margin moved -9% 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+21%

Margin effect-9%

DalalBaazaar Score

47/ 100

Moderate

Weighted across six categories. Every point is explained below.

• Beta of 0.85 — moves roughly with the market
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ High leverage magnifies any downturn in earnings
✗ Profits have swung sharply from year to year — earnings are hard to forecast

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

28.6x

3Y Median

28.2x

40 monthly readings · mean 28.3x · range 6.6x–56.4x

Sector Median

66.2x

median of 4 sector peers

🟡Currently trading close to its 3y median of 28.2x — the market is paying about what it usually pays for this company.

🟢Against its sector it trades 57% below the peer median of 66.2x.

vs. its own history

Fair

28.2x median over 40 months · +1%

vs. sector peers

Cheap

66.2x median of 4 peers · -57%

vs. generic bands

Fair

15x–35x

EV/EBITDA

17.4x

PEG

8.62

What's Good / What's Bad

🟢 What's Going Well1

Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 33.9% to 10.5% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 27.6% to 14.2% — often a sign of competition or overexpansion.

Red Flags

2 items require attention · 1 high · 1 watch

🔴High leverageFinancial
Debt/Equity of 9.13x — earnings must service borrowings before shareholders see anything.
🟡Inventory building faster than salesFinancial
Inventory up 69% against revenue up 21% — stock may not be moving.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Cheaper than its peers
It trades 57% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
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?

Leverage amplifies any setback
Debt/Equity of 9.13x. Interest is payable whether or not the business has a good year.
Growth barely outpaces inflation
Revenue compounding at 6.6% a year is close to the rate prices rise, so the business is gaining little ground in real terms. That leaves the share price dependent on a re-rating rather than on earnings growth.
Returns on shareholder capital are falling
ROE has dropped from 33.9% to 10.5%. 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.
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.

🟡 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.
2Revenue growth stays above 5% a year✓ 6.6% CAGR
Latest reported year was -12.1%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
3Free cash flow remains positive✓ ₹2 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.6x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 11%✓ 14.2%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

4 / 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

2 good · 6 neutral · 3 weak

Market Cap

₹138 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

28.6x

Fair

Fairly valued against the generic band

P/B Ratio

2.60x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹21.37

Profitable

Profitable on a per-share basis

ROE

10.5%

Moderate

Moderate capital efficiency

ROCE

14.2%

Moderate

Moderate return on the capital in the business

Debt/Equity

9.13x

High

High leverage

Revenue Growth (YoY)

-12.1%

Shrinking

Sales are contracting

Profit Growth (YoY)

-49.9%

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

₹2 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

3.4%

Weak

Thin margins leave little room for error

Net Margin

6.8%

Average

Average bottom-line conversion

Current Ratio

2.89

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.85

Market-like

Moves roughly in line with the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

648.7 / 679.0

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

37.1

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹60 Cr	₹75 Cr	₹90 Cr	₹73 Cr	+6.6%
EBITDA	₹7 Cr	₹12 Cr	₹11 Cr	₹8 Cr	+3.2%
EBITDA Margin	12.3%	16.5%	12.6%	11.2%	—
PAT (Net Profit)	₹5 Cr	₹8 Cr	₹24 Cr	₹6 Cr	+3.3%
EPS	₹22.47	₹37.4	₹106.71	₹24.78	+3.3%
ROE	33.9%	36.1%	50.7%	10.5%	—
ROCE	27.6%	40.7%	60.4%	14.2%	—
Total Debt	₹4 Cr	₹3 Cr	₹9 Cr	₹5 Cr	+6.2%
Free Cash Flow	₹4 Cr	₹2 Cr	-₹13 Cr	₹2 Cr	-19.5%

🟢 Revenue has grown at 6.6% a year over 3 years.

🟢 EBITDA has grown at 3.2% a year over 3 years.

🔴 EBITDA Margin has fallen from 12.3% to 11.2% over 3 years (-1.1 pts).

🟢 PAT (Net Profit) has grown at 3.3% a year over 3 years.

🟢 EPS has grown at 3.3% a year over 3 years.

🔴 ROE has fallen from 33.9% to 10.5% over 3 years (-23.3 pts).

🔴 ROCE has fallen from 27.6% to 14.2% over 3 years (-13.4 pts).

🔴 Total Debt has grown at 6.2% a year over 3 years.

🔴 Free Cash Flow has shrunk at 19.5% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹69 Cr

Total Liabilities

₹16 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

₹3 Cr

Capex

-₹1 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

89.1%

Corporate Actions

Ex-Dividend Date

09 Sept 2010

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 mixed4 general

Five Consecutive Losses Push Brady & Morris Engineering Company Ltd to a New 52-Week Low

MarketsMojo, 14 Oct

52 Week Low Shares BSE | 52 Week Low Today | Shares Trading 52 Week Low BSE

Livemint, 16 Oct

Brady & Morris Engineering Company Ltd. (BRADYM) Share Price rises 13.98% to Rs 750

Univest, 24 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.

Brady & Morris Engineering Company Ltd. Peer Comparison – Compare with Others

Value Research, 30 Aug

Brady & Morris Engineering closes trading window for Q2FY27 results

scanx.trade, 28 SeptResults

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

Brady & Morris adopts FY26 financials, approves RPT at 80th AGM

scanx.trade, 26 Sept

Watch Items

Revenue growth is negative (-12.1%) on the latest reported period — check if this is one-off or a trend.
Trading very close to its 52-week low — worth checking whether this reflects a temporary setback or a structural problem.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongFinancial Health

MiddlingProfitability · Valuation

WeakBusiness Quality · Growth · 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.

All 5 tripwires holding · see Key things to watch ↑