Ecos (India) Mobility & Hospitality Limited

Industrials — Rental & Leasing Services · NSE

₹107.95+₹1.63 (+1.53%)

DalalBaazaar Score

62 / 100

🟢 Good

Verdict

REASONABLE

Risk

Very High

Driven by high debt relative to equity, micro-cap size, which brings thin liquidity, a beta above 1.3, so it swings harder than the index.

In simple words: Strong business and financial position, with modest growth. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:08 pm

Mixed / neutral. No major red flags jump out, but nothing here screams "obviously cheap" either. This is a name that needs a peer comparison and a view on near-term earnings triggers before sizing a position.

Understanding the Business

Company site ↗

The 60-second version of Ecos (India) Mobility & Hospitality Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Ecos (India) Mobility & Hospitality Limited provides chauffeured car rental and employee transportation services in India and internationally.

IndustryRental & Leasing Services

SectorIndustrials

Employees1,271

Annual revenue₹808 Cr

How does it make money?

Turns over ₹808 Cr a year. Of every ₹100 of sales, about ₹7 reaches shareholders as profit, with ₹12 left at the operating level before interest, tax and depreciation. Each of its 1,271 employees supports ₹63.6 lakh of revenue a year, the signature of a people-led business.

EBITDA margin12.2%

Net margin7.1%

Revenue / employee₹63.6 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.

LARSEN & TOUBRO LTD.P/E 30.1x · ROE 15.2%

SIEMENS LTDP/E 88.8x · ROE 10.5%

ABB INDIA LIMITEDP/E 92.6x · ROE 19.1%

What is its competitive advantage?The numbers suggest a real one

ROCE has stayed above 15% in every year available and stands at 27.7%. Returns that high normally get competed away; when they persist, something is protecting them, and its ROE of 21.7% against a peer median of 15.2% is consistent with that. What that something is — brand, scale, switching costs, regulation — the accounts cannot tell you.

ROCE27.7%

ROE21.7%

Peer median ROE15.2%

What is the outlook?

1 analysts covering the stock expect revenue to grow about 15.0% and earnings to grow about 17.2% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+15.0%

Est. earnings growth+17.2%

Analysts1

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 +92% while net margin moved -31% 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+92%

Margin effect-31%

DalalBaazaar Score

62/ 100

Good

Weighted across six categories. Every point is explained below.

✗ Beta of 1.36 — amplifies market moves in both directions
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ High leverage magnifies any downturn in earnings
✓ Profits have been consistent from year to year

Quality vs. Valuation

Company Quality

62/ 100

Average

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

Valuation

82/ 100

Cheap

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

11.1x

2Y Median

19.0x

27 monthly readings · mean 21.0x · range 10.5x–43.4x

Sector Median

88.8x

median of 3 sector peers

🟢Current valuation is approximately 41% below its 2y median of 19.0x. 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 87% below the peer median of 88.8x.

vs. its own history

Cheap

19.0x median over 27 months · -41%

vs. sector peers

Cheap

88.8x median of 3 peers · -87%

vs. generic bands

Cheap

Below 15x

P/E (Trailing)

11.1x

P/B

2.44x

EV/EBITDA

6.4x

PEG

1.15

Dividend Yield

2.20%

What's Good / What's Bad

🟢 What's Going Well5

Debt is being paid down
Total debt is down 80% over 3 years.
Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.
High return on capital employed
ROCE of 27.7% is the mark of a business that converts capital into profit efficiently.
Valuation below its historical average
At 11.1x the stock trades 41% below its own median of 19.0x.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention3

Margins are compressing
EBITDA margin has slipped from 16.8% to 12.2% over 3 years.
Return on equity is falling
ROE has dropped from 37.9% to 21.7% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 44.1% to 27.7% — often a sign of competition or overexpansion.

Red Flags

2 items require attention · 1 high · 1 watch

🔴High leverageFinancial
Debt/Equity of 2.94x — earnings must service borrowings before shareholders see anything.
🟡Margins are compressingFinancial
EBITDA margin is down 4.6 points over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 27.7% 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.
Deleveraging frees up earnings
Debt is down 80% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
Priced below its own history
The stock trades 41% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Cheaper than its peers
It trades 87% 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?

Margins are being competed away
EBITDA margin has fallen from 16.8% to 12.2%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Leverage amplifies any setback
Debt/Equity of 2.94x. Interest is payable whether or not the business has a good year.
Returns on shareholder capital are falling
ROE has dropped from 37.9% to 21.7%. 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.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 18% a year✓ 24.2% CAGR
Latest reported year was 16.7%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 10%✓ 12.2%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✓ ₹34 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.1x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 25%✓ 27.7%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

9 / 12 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
✓ Analyst consensus isn't majority-sell
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

7 good · 3 neutral · 1 weak

Market Cap

₹648 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

11.1x

Cheap

Cheap against the generic band

P/B Ratio

2.44x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹9.7

Profitable

Profitable on a per-share basis

ROE

21.7%

Strong

Strong capital efficiency

ROCE

27.7%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

2.94x

High

High leverage

Revenue Growth (YoY)

16.7%

Healthy

Healthy top-line growth

Profit Growth (YoY)

9.5%

Modest

Slow profit growth

Dividend Yield

2.20%

Healthy

Meaningful cash return while you hold the stock

Free Cash Flow

₹34 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

CMP

₹107.95

P/E (Forward)

9.3x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

7.4%

Average

Average margins

Net Margin

7.0%

Average

Average bottom-line conversion

Current Ratio

2.54

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

1.36

High swing

Swings more than the market in both directions

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

107.1 / 112.2

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

45.5

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹422 Cr	₹553 Cr	₹654 Cr	₹808 Cr	+24.2%
EBITDA	₹71 Cr	₹97 Cr	₹95 Cr	₹98 Cr	+11.6%
EBITDA Margin	16.8%	17.5%	14.5%	12.2%	—
PAT (Net Profit)	₹44 Cr	₹63 Cr	₹60 Cr	₹58 Cr	+9.7%
EPS	₹7.27	₹10.42	₹10.02	₹9.6	+9.7%
ROE	37.9%	35.2%	27.1%	21.7%	—
ROCE	44.1%	43.9%	34.7%	27.7%	—
Total Debt	₹38 Cr	₹30 Cr	₹14 Cr	₹8 Cr	-41.1%
Free Cash Flow	-₹17 Cr	₹44 Cr	₹43 Cr	₹34 Cr	—

🟢 Revenue has grown at 24.2% a year over 3 years.

🟢 EBITDA has grown at 11.6% a year over 3 years.

🔴 EBITDA Margin has fallen from 16.8% to 12.2% over 3 years (-4.6 pts).

🟢 PAT (Net Profit) has grown at 9.7% a year over 3 years.

🟢 EPS has grown at 9.7% a year over 3 years.

🔴 ROE has fallen from 37.9% to 21.7% over 3 years (-16.1 pts).

🔴 ROCE has fallen from 44.1% to 27.7% over 3 years (-16.5 pts).

🟢 Total Debt has shrunk at 41.1% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹17 Cr to ₹34 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹413 Cr

Total Liabilities

₹148 Cr

Total Debt

₹8 Cr

Cash & Equivalents

₹24 Cr

Operating Cash Flow

₹68 Cr

Capex

-₹35 Cr

Shareholding (proxy)

Institutional Holding

11.5%

Insider Holding

71.0%

Corporate Actions

Dividend Rate

₹2.38

Ex-Dividend Date

18 Aug 2026

Analyst Consensus

Recommendations

1 Buy · 0 Hold · 0 Sell

Target Price (Mean)

₹188

+74.2% vs CMP

Target Range

₹188 – ₹188

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

3 positive1 mixed2 general

Ecos (India) Mobility & Hospitality (NSE:ECOSMOBLTY) Could Be A Buy For Its Upcoming Dividend

Simply Wall Street, 14 AugCapital return

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

Ecos (India) Mobility & Hospitality Share Price Near Low

Univest, 01 Oct

Ecos (India) Mobility & Hospitality Ltd Key Financial Ratios – Valuation, Profitability & More

Value Research, 26 Aug

ECOSMOBLTY Forecast — Price Target — Prediction for 2027

TradingView, 25 JunAnalyst view

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

Ecos Mobility board recommends final dividend of ₹2.38 per share

scanx.trade, 06 JulCapital return

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

Ecos (India) Mobility & Hospitality consolidated net profit rises 9.33% in the June 2026 quarter

Business Standard, 11 AugResults

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

Watch Items

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

🟡Business QualityAdequate11.1/20

🟢Financial HealthStrong14.5/20

🟡GrowthModest11.6/20

🟡ProfitabilityModerate9.3/15

🟢ValuationAttractive11.8/15

🔴RiskHigh3.9/10

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.

This thesis breaks if

✓Revenue growth stays above 18% a year24.2% CAGR
✓EBITDA margin holds above 10%12.2%
✓Free cash flow remains positive₹34 Cr
✓Debt / EBITDA stays below 2x0.1x
✓ROCE stays above 25%27.7%