Deem Roll-Tech Limited

Sector n/a · NSE

₹98.00−₹0.10 (−0.10%)

DalalBaazaar Score

41 / 100

🟡 Moderate

Verdict

CAUTION

Risk

High

Driven by negative free cash flow, 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, but sales are shrinking. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:47 pm

Understanding the Business

The 60-second version of Deem Roll-Tech 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 ₹91 Cr a year. Of every ₹100 of sales, about ₹7 reaches shareholders as profit, with ₹13 left at the operating level before interest, tax and depreciation.

What is its competitive advantage?Little sign of one

Returns on capital of 10.5% 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?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved -12% while net margin moved +6% 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-12%

Margin effect+6%

DalalBaazaar Score

41/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 4.2% a year
✗ Profit has declined at 2.3% a year
✗ Profit fell 7.0% in the latest year

Quality vs. Valuation

Company Quality

39/ 100

Weak

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

Valuation

60/ 100

Fair

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

Weak on business quality and not cheap enough to compensate.

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

9.9x

PEG

—

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 14.4% to 7.5% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 20.4% to 10.5% — often a sign of competition or overexpansion.

Red Flags

4 items require attention · 4 high

🔴Debt has risen sharplyFinancial
Total debt is up 68% over 3 years, from ₹21 Cr to ₹35 Cr.
🔴Free cash flow negative for 4 yearsFinancial
The business has not covered its capital spending from operations for several years running, which has to be funded externally.
🔴Receivables growing faster than salesFinancial
Receivables up 55% against revenue up -12% — sales are being booked faster than they are collected.
🔴Inventory building faster than salesFinancial
Inventory up 76% against revenue up -12% — stock may not be moving.

Investment Thesis

🟢 Bull CaseWhat could make this work?

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?

The debt load needs earnings to hold up
Debt is 3.0x 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 55% against revenue up -12%. 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 14.4% to 7.5%. 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.
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
4 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 11%✓ 12.7%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA falls below 3x✗ 3.0x
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✗ -₹8 Cr
Profit that never becomes cash eventually stops being profit.
4Interest cover stays above 3x✓ 3.4x
How much operating profit can fall before interest stops being comfortably covered.
5ROCE stays above 8%✓ 10.5%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

3 / 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

1 good · 6 neutral · 4 weak

Market Cap

₹82 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

7.5%

Weak

Weak capital efficiency

ROCE

10.5%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.40x

Low

Conservative leverage

Revenue Growth (YoY)

-2.2%

Shrinking

Sales are contracting

Profit Growth (YoY)

-7.0%

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 burning

Spending more cash than the operations bring in

More Metrics

Gross Margin

28.2%

Proxy

Operating margin unavailable — showing gross margin instead

Net Margin

7.3%

Average

Average bottom-line conversion

Current Ratio

1.75

Comfortable

Healthy short-term liquidity

Technical Snapshot

SMA 20 / SMA 50

44.8 / 43.0

Bullish alignment (short > long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

23.3

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹103 Cr	₹101 Cr	₹93 Cr	₹91 Cr	-4.2%
EBITDA	₹13 Cr	₹14 Cr	₹10 Cr	₹11 Cr	-3.5%
EBITDA Margin	12.4%	13.5%	10.5%	12.7%	—
PAT (Net Profit)	₹7 Cr	₹8 Cr	₹7 Cr	₹7 Cr	-2.3%
EPS	₹8.49	₹12.92	₹3.48	—	—
ROE	14.4%	9.3%	8.3%	7.5%	—
ROCE	20.4%	13.3%	9.8%	10.5%	—
Total Debt	₹21 Cr	₹22 Cr	₹22 Cr	₹35 Cr	+18.8%
Free Cash Flow	-₹4 Cr	-₹6 Cr	-₹20 Cr	-₹8 Cr	—

🔴 Revenue has shrunk at 4.2% a year over 3 years.

🔴 EBITDA has shrunk at 3.5% a year over 3 years.

🟡 EBITDA Margin has held roughly flat at 12.7% over 3 years.

🔴 PAT (Net Profit) has shrunk at 2.3% a year over 3 years.

🔴 ROE has fallen from 14.4% to 7.5% over 3 years (-6.9 pts).

🔴 ROCE has fallen from 20.4% to 10.5% over 3 years (-9.9 pts).

🔴 Total Debt has grown at 18.8% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹145 Cr

Total Liabilities

₹58 Cr

Cash & Equivalents

₹3 Cr

Operating Cash Flow

₹5 Cr

Capex

-₹13 Cr

Recent News

1 positive5 general

Deem Roll Tech wins Rs 1 crore work order from overseas customer for supply of rolls

scanx.trade, 05 OctOrder win

🟢Potentially positiveAn order or contract win, which adds to future revenue. How much depends on its size against annual sales and on when it is executed.

JINDAL SUPREME (INDIA) LTD. Stock/Share price , NSE/BSE Forecast News and Live Quotes

Equitymaster, 24 Sept

Deem Roll Tech Ltd share price makes a stellar debut, stock opens with 55% premium at ₹200 apiece on NSE SME

Livemint, 27 Feb

Deem Roll Tech stock lists at 55% premium to IPO price on NSE SME

Moneycontrol.com, 27 Feb

Deem Roll Tech Limited IPO Date, Price, GMP, Review, Detail

IndiaIPO, 11 Aug

Deem Roll Tech IPO Skyrockets with Staggering 233.90x Subscription on Day 3!

Alice Blue, 22 Feb

Watch Items

Revenue growth is negative (-2.2%) on the latest reported period — check if this is one-off or a trend.
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

MiddlingBusiness Quality · Financial Health · Valuation

WeakGrowth · Profitability · 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. 4 high-severity red flags sit above this conclusion and should be read first.

2 of 5 tripwires tripped — Debt / EBITDA falls below 3x; Free cash flow remains positive · see Key things to watch ↑