Coromandel Engineering Company Limited

Industrials — Engineering & Construction · BSE

₹86.60−₹4.43 (−4.87%)

DalalBaazaar Score

34 / 100

🔴 Weak

Verdict

CAUTION

Risk

Very High

Driven by moderate debt load, negative free cash flow, micro-cap size, which brings thin liquidity.

In simple words: Reasonable but unspectacular business quality, though profits are falling even as sales grow. Cash generation is currently the main factor to watch.

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 Coromandel 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?

Coromandel Engineering Company Limited engages in the construction and property development businesses in India.

IndustryEngineering & Construction

SectorIndustrials

Employees40

Annual revenue₹42 Cr

How does it make money?

Turns over ₹42 Cr a year. Of every ₹100 of sales, about ₹0 reaches shareholders as profit, with ₹9 left at the operating level before interest, tax and depreciation. Each of its 40 employees supports ₹1.05 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹1.05 Cr

Who are its competitors?

The closest listed comparisons in its industry are LARSEN & TOUBRO LTD., ADANI PORT & SEZ LTD, SIEMENS 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 13.4% 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.

Peer median ROE14.1%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved -67% while net margin moved -111% 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-67%

Margin effect-111%

DalalBaazaar Score

34/ 100

Weak

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 30.7% a year
✗ Profit fell 59.3% in the latest year

Quality vs. Valuation

Company Quality

35/ 100

Weak

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

Valuation

23/ 100

Expensive

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

Weak on business quality and not cheap enough to compensate.

Historical Valuation

Current P/E

2886.7x

1.3Y Median

690.8x

16 monthly readings · mean 835.8x · range 443.0x–1789.6x

Sector Median

30.1x

median of 3 sector peers

⚠️Current valuation is approximately 318% above its 1.3y median of 690.8x. Paying more than usual needs a reason — faster growth, a better balance sheet, or a re-rating you believe in.

⚠️Against its sector it trades 9494% above the peer median of 30.1x.

vs. its own history

Expensive

690.8x median over 16 months · +318%

vs. sector peers

Expensive

30.1x median of 3 peers · +9494%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

84.2x

PEG

—

What's Good / What's Bad

🟢 What's Going Well3

Margins are improving
EBITDA margin is up from -1.5% to 9.1% over 3 years.
Debt is being paid down
Total debt is down 17% over 3 years.
Return on capital is rising
ROCE has improved from -11.7% to 13.4%.

🔴 What Needs Attention0

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

Red Flags

2 items require attention · 1 high · 1 watch

🔴Thin interest coverageFinancial
Operating profit covers interest only 1.1x — little room if earnings dip.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹3 Cr in the latest year.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from -1.5% to 9.1%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Deleveraging frees up earnings
Debt is down 17% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.

🔴 Bear CaseWhat could go wrong?

The debt load needs earnings to hold up
Debt is 5.3x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
The price already assumes success
The stock trades 318% above its own median multiple. At this level the business has to deliver just to stand still, and a stumble is repriced twice — lower earnings on a lower multiple.
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 7%✓ 9.1%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA falls below 3x✗ 5.3x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
3Free cash flow remains positive✗ -₹3 Cr
Profit that never becomes cash eventually stops being profit.
4Interest cover stays above 3x✗ 1.1x
How much operating profit can fall before interest stops being comfortably covered.
5ROCE stays above 10%✓ 13.4%
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 · 5 neutral · 4 weak

Market Cap

₹302 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

2886.7x

Expensive

Expensive — verify against sector peers

P/B Ratio

22.70x

Rich

Steep premium to book — needs high, durable returns to justify

EPS (TTM)

₹0.03

Profitable

Profitable on a per-share basis

ROE

9.2%

Moderate

Moderate capital efficiency

ROCE

13.4%

Moderate

Moderate return on the capital in the business

Debt/Equity

1.48x

Moderate

Moderate leverage

Revenue Growth (YoY)

78.9%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-59.3%

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

-₹1 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

ROA

2.4%

Weak

Assets generate little profit

Operating Margin

7.4%

Average

Average margins

Net Margin

2.5%

Weak

Very little revenue reaches the bottom line

Current Ratio

1.09

Adequate

Adequate, but no real cushion

Beta (vs Nifty)

-0.23

Defensive

Steadier than the market

52W Range Position

57%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

64.4 / 59.2

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

75.9

Overbought zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹126 Cr	₹96 Cr	₹30 Cr	₹42 Cr	-30.7%
EBITDA	-₹2 Cr	₹0 Cr	₹2 Cr	₹4 Cr	—
EBITDA Margin	-1.5%	0.4%	8.4%	9.1%	—
PAT (Net Profit)	-₹5 Cr	-₹4 Cr	₹0 Cr	₹0 Cr	—
EPS	₹-1.36	₹-1.32	₹0.12	₹0.05	—
ROE	—	-126.6%	6.6%	1.3%	—
ROCE	-11.7%	-9.4%	11.1%	13.4%	—
Total Debt	₹24 Cr	₹17 Cr	₹23 Cr	₹20 Cr	-5.9%
Free Cash Flow	-₹8 Cr	₹11 Cr	-₹2 Cr	-₹3 Cr	—

🔴 Revenue has shrunk at 30.7% a year over 3 years.

🟢 EBITDA has turned positive, from -₹2 Cr to ₹4 Cr.

🟢 EBITDA Margin has risen from -1.5% to 9.1% over 3 years (+10.7 pts).

🟢 PAT (Net Profit) has turned positive, from -₹5 Cr to ₹0 Cr.

🟢 EPS has turned positive, from ₹-1.36 to ₹0.05.

🟢 ROE has risen from -126.6% to 1.3% over 3 years (+127.8 pts).

🟢 ROCE has risen from -11.7% to 13.4% over 3 years (+25.1 pts).

🟢 Total Debt has shrunk at 5.9% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹97 Cr

Total Liabilities

₹84 Cr

Cash & Equivalents

—

Operating Cash Flow

-₹3 Cr

Capex

—

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

76.9%

Corporate Actions

Ex-Dividend Date

07 Jul 2011

Peer Comparison

Company	P/E	ROE
LARSEN & TOUBRO LTD.	30.1x	15.2%
ADANI PORT & SEZ LTD	29.9x	14.1%
SIEMENS LTD	88.8x	10.5%

Recent News

1 positive2 mixed3 general

Coromandel Engineering Company Upper Circuit Today

Univest, 16 Oct

Coromandel Engineering Company reports standalone net profit of Rs 0.33 crore in the June 2026 quarter

Business Standard, 12 AugResults

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

Coromandel Engineering closes trading window ahead of Q2FY27 results

scanx.trade, 26 SeptResults

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

Coromandel Engineering Company Lower Circuit Streak: Day 2

Univest, 16 Oct

Coromandel Engineering Company Limited Responds to BSE Inquiry on Share Price Movement

scanx.trade, 17 Dec

Canara Robeco, Benares Hotels, Ador Welding, Craftsman Automation: Dividend Record Date: Last Day To Buy Shares To Qualify

NDTV Profit, 15 JulCapital 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.
RSI is in overbought territory — momentum entries here carry more short-term pullback risk.

DalalBaazaar Thesis

MiddlingBusiness Quality · Financial Health

WeakGrowth · Profitability · Valuation · Risk

Points for each in the Score ↑

Weak on the fundamentals

Poor scores on business quality without a price low enough to compensate. There is no obvious argument for owning this over a stronger company at a similar valuation. 1 high-severity red flag sits 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 ↑