Danlaw Technologies India Limited

Consumer Cyclical — Auto Parts · BSE

₹1,370.90−₹70.25 (−4.87%)

DalalBaazaar Score

73 / 100

🟢 Good

Verdict

REASONABLE

Risk

Low

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

In simple words: Strong business and financial position, with both sales and profits growing well. 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, 7:46 pm

Understanding the Business

Company site ↗

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

What does this company do?

Danlaw Technologies India Limited provides engineering and software development consulting services and industrial electronics internationally.

IndustryAuto Parts

SectorConsumer Cyclical

Employees235

Annual revenue₹262 Cr

How does it make money?

Turns over ₹262 Cr a year. Of every ₹100 of sales, about ₹9 reaches shareholders as profit, with ₹15 left at the operating level before interest, tax and depreciation. Each of its 235 employees supports ₹1.11 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹1.11 Cr

Who are its competitors?

The closest listed comparisons in its industry are BOSCH LIMITED, MARUTI SUZUKI INDIA LTD., TVS MOTOR COMPANY LTD, EICHER MOTORS 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?The numbers suggest a real one

ROCE has stayed above 15% in every year available and stands at 27.9%. Returns that high normally get competed away; when they persist, something is protecting them, and its ROE of 23.1% against a peer median of 23.0% is consistent with that. What that something is — brand, scale, switching costs, regulation — the accounts cannot tell you.

Peer median ROE23.0%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +57% while net margin moved +102% 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+57%

Margin effect+102%

DalalBaazaar Score

73/ 100

Good

Weighted across six categories. Every point is explained below.

• Beta of 1.15 — moves roughly with the market
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ Profits have swung sharply from year to year — earnings are hard to forecast

Quality vs. Valuation

Company Quality

84/ 100

Excellent

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

Valuation

64/ 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

26.2x

3Y Median

30.1x

40 monthly readings · mean 48.5x · range 11.4x–148.2x

Sector Median

45.7x

median of 4 sector peers

🟢Current valuation is approximately 13% below its 3y median of 30.1x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

🟢Against its sector it trades 43% below the peer median of 45.7x.

vs. its own history

Fair

30.1x median over 40 months · -13%

vs. sector peers

Cheap

45.7x median of 4 peers · -43%

vs. generic bands

Fair

15x–35x

EV/EBITDA

16.6x

PEG

0.56

What's Good / What's Bad

🟢 What's Going Well7

Margins are improving
EBITDA margin is up from 12.5% to 15.4% over 3 years.
Debt is being paid down
Total debt is down 22% over 3 years.
Cash generation is improving
Free cash flow is up 150% over 3 years.
Return on capital is rising
ROCE has improved from 18.9% to 27.9%.
High return on capital employed
ROCE of 27.9% is the mark of a business that converts capital into profit efficiently.
Very low debt
Debt/Equity of 0.30x leaves the balance sheet with plenty of headroom.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

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

Red Flags

1 item require attention · 1 watch

🟡Receivables growing faster than salesFinancial
Receivables up 86% against revenue up 57% — sales are being booked faster than they are collected.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 27.9% means each rupee reinvested earns well above what capital costs. If the company can keep deploying at this rate, growth creates value rather than just consuming cash.
Margin expansion has further to run
EBITDA margin has risen from 12.5% to 15.4%. 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 22% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
Cheaper than its peers
It trades 43% 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.

🔴 Bear CaseWhat could go wrong?

Sales are being booked faster than collected
Receivables are up 86% against revenue up 57%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
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

1Revenue growth stays above 12% a year✓ 16.1% CAGR
Latest reported year was 34.6%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 13%✓ 15.4%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✓ ₹8 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.7x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 25%✓ 27.9%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

9 / 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

7 good · 3 neutral · 1 weak

Market Cap

₹668 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

26.2x

Fair

Fairly valued against the generic band

P/B Ratio

6.70x

Rich

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

EPS (TTM)

₹52.26

Profitable

Profitable on a per-share basis

ROE

23.1%

Strong

Strong capital efficiency

ROCE

27.9%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.30x

Low

Conservative leverage

Revenue Growth (YoY)

34.6%

Healthy

Healthy top-line growth

Profit Growth (YoY)

70.8%

Healthy

Profits growing at a healthy clip

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

Operating Margin

11.1%

Average

Average margins

Net Margin

9.1%

Average

Average bottom-line conversion

Current Ratio

2.05

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

1.15

Market-like

Moves roughly in line with the market

52W Range Position

67%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

1513.5 / 1522.1

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

33.7

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹167 Cr	₹211 Cr	₹218 Cr	₹262 Cr	+16.1%
EBITDA	₹21 Cr	₹37 Cr	₹33 Cr	₹40 Cr	+24.6%
EBITDA Margin	12.5%	17.3%	15.1%	15.4%	—
PAT (Net Profit)	₹7 Cr	₹22 Cr	₹19 Cr	₹23 Cr	+46.9%
EPS	₹14.89	₹45.63	₹38.85	₹47.2	+46.9%
ROE	20.2%	38.4%	24.7%	23.1%	—
ROCE	18.9%	36.5%	26.7%	27.9%	—
Total Debt	₹38 Cr	₹30 Cr	₹35 Cr	₹30 Cr	-7.8%
Free Cash Flow	₹3 Cr	₹22 Cr	₹0 Cr	₹8 Cr	+35.6%

🟢 Revenue has grown at 16.1% a year over 3 years.

🟢 EBITDA has grown at 24.6% a year over 3 years.

🟢 EBITDA Margin has risen from 12.5% to 15.4% over 3 years (+2.9 pts).

🟢 PAT (Net Profit) has grown at 46.9% a year over 3 years.

🟢 EPS has grown at 46.9% a year over 3 years.

🟢 ROE has risen from 20.2% to 23.1% over 3 years (+2.8 pts).

🟢 ROCE has risen from 18.9% to 27.9% over 3 years (+8.9 pts).

🟢 Total Debt has shrunk at 7.8% a year over 3 years.

🟢 Free Cash Flow has grown at 35.6% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹183 Cr

Total Liabilities

₹83 Cr

Cash & Equivalents

₹27 Cr

Operating Cash Flow

₹21 Cr

Capex

-₹13 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

65.7%

Peer Comparison

Company	P/E	ROE
BOSCH LIMITED	56.9x	15.9%
MARUTI SUZUKI INDIA LTD.	25.2x	13.4%
TVS MOTOR COMPANY LTD	56.8x	35.8%
EICHER MOTORS LTD	34.7x	23.0%

Recent News

2 positive1 mixed3 general

DANLAW Forecast — Price Target — Prediction for 2027

TradingView, 17 OctAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Danlaw Technologies India Lower Circuit Today: Price, Data and Peers

Univest, 16 Oct

Danlaw Technologies Q1FY27 net profit up 71% to ₹59.3 million

scanx.trade, 14 AugResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

Danlaw Technologies India standalone net profit rises 46.32% in the March 2026 quarter

Business Standard, 28 MayResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

Danlaw Share Price Near One-Year High: Price, Valuation

Univest, 14 Aug

Danlaw Technologies India Ltd. Share Price Live Today

CNBC TV18, 03 Jan

Watch Items

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

DalalBaazaar Thesis

StrongBusiness Quality · Financial Health · Growth · Profitability

WeakValuation · Risk

Points for each in the Score ↑

Good business at a fair price

A sound business at a reasonable valuation. Suitable for a long-term holding, with the valuation and the direction of margins worth watching rather than the business itself.

All 5 tripwires holding · see Key things to watch ↑