Elin Electronics Limited

Industrials — Electrical Equipment & Parts · NSE

₹77.31+₹0.24 (+0.31%)

DalalBaazaar Score

36 / 100

🔴 Weak

Verdict

CAUTION

Risk

Very High

Driven by high debt relative to equity, negative free cash flow, the company is currently loss-making.

In simple words: The company is currently losing money, though profits are falling even as sales grow. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:00 pm

Understanding the Business

Company site ↗

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

What does this company do?

Elin Electronics Limited engages in the design, manufacture, and sale of electronics motors, tools, moulds, dies, kitchen appliances, personal care and lighting products, and automotive components in India and internationally.

IndustryElectrical Equipment & Parts

SectorIndustrials

Employees2,391

Annual revenue₹1,259 Cr

How does it make money?

Turns over ₹1,259 Cr a year. Of every ₹100 of sales, about ₹2 reaches shareholders as profit, with ₹5 left at the operating level before interest, tax and depreciation. Each of its 2,391 employees supports ₹52.7 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹52.7 lakh

Who are its competitors?

The closest listed comparisons in its industry are SIEMENS LTD, ABB INDIA LIMITED, 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 6.6% 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?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved +20% while net margin moved -30% 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+20%

Margin effect-30%

DalalBaazaar Score

36/ 100

Weak

Weighted across six categories. Every point is explained below.

✗ ROE of 4.1% is weak

Quality vs. Valuation

Company Quality

34/ 100

Weak

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

Valuation

54/ 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

N/A

No P/E — the company is lossmaking

EV/EBITDA

6.8x

PEG

—

What's Good / What's Bad

🟢 What's Going Well2

Debt is being paid down
Total debt is down 79% over 3 years.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Margins are compressing
EBITDA margin has slipped from 6.3% to 4.6% over 3 years.
Return on capital is falling
ROCE has declined from 8.9% to 6.6% — often a sign of competition or overexpansion.

Red Flags

2 items require attention · 1 high · 1 watch

🔴High leverageFinancial
Debt/Equity of 2.97x — earnings must service borrowings before shareholders see anything.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹6 Cr in the latest year.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Deleveraging frees up earnings
Debt is down 79% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
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 6.3% to 4.6%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Leverage amplifies any setback
Debt/Equity of 2.97x. Interest is payable whether or not the business has a good year.
Growth barely outpaces inflation
Revenue compounding at 6.3% 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.
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 3%✓ 4.6%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Free cash flow remains positive✗ -₹6 Cr
Profit that never becomes cash eventually stops being profit.
3Revenue growth stays above 5% a year✓ 6.3% CAGR
Latest reported year was 22.8%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
4Debt / EBITDA stays below 2x✓ 0.3x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 8%✗ 6.6%
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 · 2 neutral · 7 weak

Market Cap

₹384 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

Not meaningful

Loss-making

Earnings are negative, so a P/E multiple can't be read here

P/B Ratio

0.66x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹-1.69

Loss-making

Negative earnings per share — the business is losing money

ROE

4.1%

Weak

Weak capital efficiency

ROCE

6.6%

Weak

Low return on total capital employed

Debt/Equity

2.97x

High

High leverage

Revenue Growth (YoY)

22.8%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-23.0%

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

-₹6 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

-0.9%

Weak

Thin margins leave little room for error

Net Margin

-0.6%

Weak

Very little revenue reaches the bottom line

Current Ratio

2.44

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.79

Defensive

Steadier than the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

82.5 / 91.3

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

22.6

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹1,050 Cr	₹1,017 Cr	₹1,152 Cr	₹1,259 Cr	+6.3%
EBITDA	₹66 Cr	₹49 Cr	₹57 Cr	₹58 Cr	-4.3%
EBITDA Margin	6.3%	4.9%	4.9%	4.6%	—
PAT (Net Profit)	₹27 Cr	₹14 Cr	₹29 Cr	₹23 Cr	-5.5%
EPS	₹6.29	₹2.9	₹6.11	₹4.64	-9.6%
ROE	5.4%	2.8%	5.5%	4.1%	—
ROCE	8.9%	5.3%	8.4%	6.6%	—
Total Debt	₹78 Cr	₹12 Cr	₹24 Cr	₹17 Cr	-40.5%
Free Cash Flow	₹10 Cr	₹10 Cr	-₹24 Cr	-₹6 Cr	—

🟢 Revenue has grown at 6.3% a year over 3 years.

🔴 EBITDA has shrunk at 4.3% a year over 3 years.

🔴 EBITDA Margin has fallen from 6.3% to 4.6% over 3 years (-1.7 pts).

🔴 PAT (Net Profit) has shrunk at 5.5% a year over 3 years.

🔴 EPS has shrunk at 9.6% a year over 3 years.

🔴 ROE has fallen from 5.4% to 4.1% over 3 years (-1.4 pts).

🔴 ROCE has fallen from 8.9% to 6.6% over 3 years (-2.3 pts).

🟢 Total Debt has shrunk at 40.5% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹10 Cr to -₹6 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹766 Cr

Total Liabilities

₹209 Cr

Cash & Equivalents

₹4 Cr

Operating Cash Flow

₹54 Cr

Capex

-₹60 Cr

Shareholding (proxy)

Institutional Holding

2.6%

Insider Holding

50.1%

Corporate Actions

Ex-Dividend Date

22 Sept 2023

Peer Comparison

Company	P/E	ROE
SIEMENS LTD	88.8x	10.5%
ABB INDIA LIMITED	92.6x	19.1%
HAVELLS INDIA LIMITED	43.5x	17.1%

Recent News

1 mixed5 general

Elin Electronics Share Price at Rs 75.32 near all-time low

Univest, 12 Oct

Elin Electronics Q1FY27 net loss widens on fire, input cost surge

scanx.trade, 06 Aug

Elin Electronic Standalone June 2026 Net Sales at Rs 275.22 crore, up 14.36% Y-o-Y

Moneycontrol.com, 07 Aug

Elin Electronics Q4 Profit Crashes to ₹76 L Net Loss From ₹17.2 Crore Surplus

Sahi, 25 MayResults

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

Elin Electronics Loses ₹835m Market Value But Insiders See Windfall Of ₹10m

Simply Wall Street, 11 Jan

Markets Rise, But Elin Electronics Ltd Slides to All-Time Low Amid Stock-Specific Sell-Off

MarketsMojo, 05 Oct

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.
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

MiddlingFinancial Health · Valuation

WeakBusiness Quality · Growth · 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. 1 high-severity red flag sits above this conclusion and should be read first.

2 of 5 tripwires tripped — Free cash flow remains positive; ROCE stays above 8% · see Key things to watch ↑