Everest Industries Limited

Industrials — Building Products & Equipment · NSE

₹495.40+₹10.65 (+2.20%)

DalalBaazaar Score

33 / 100

🔴 Weak

Verdict

CAUTION

Risk

High

Driven by the company is currently loss-making, micro-cap size, which brings thin liquidity.

In simple words: The company is currently losing money, but sales are shrinking. Whether sales start growing again is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:09 pm

Caution warranted. Multiple fundamental metrics — flagged in red below — point to either valuation stretch, leverage risk, or weakening profitability. This doesn't mean avoid the stock outright, but it does mean the burden of proof is on the growth story to justify the current price.

Understanding the Business

Company site ↗

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

What does this company do?

Everest Industries Limited, together with its subsidiaries, manufactures and trades in building products for residential, commercial, and industrial sectors in India and internationally. It operates in Building Products and Steel Buildings segments.

IndustryBuilding Products & Equipment

SectorIndustrials

Employees1,270

Annual revenue₹1,392 Cr

How does it make money?

Turns over ₹1,392 Cr a year. Of every ₹100 of sales, about ₹-7 reaches shareholders as profit, with ₹-1 left at the operating level before interest, tax and depreciation. Each of its 1,270 employees supports ₹1.10 Cr of revenue a year, the signature of a capital- or asset-led business.

EBITDA margin-1.3%

Net margin-7.3%

Revenue / employee₹1.10 Cr

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?Little sign of one

Returns on capital of -11.7% 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.

ROCE-11.7%

ROE-20.6%

Peer median ROE15.2%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved -15% while net margin moved -381% 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-15%

Margin effect-381%

DalalBaazaar Score

33/ 100

Weak

Weighted across six categories. Every point is explained below.

✗ Return on equity is negative
✗ ROE has fallen by 27.8 points over the period

Quality vs. Valuation

Company Quality

32/ 100

Weak

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

Valuation

29/ 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.

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

P/E (Trailing)

Not meaningful

P/B

1.59x

EV/EBITDA

—

PEG

—

Dividend Yield

0.20%

What's Good / What's Bad

🟢 What's Going Well1

Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.

🔴 What Needs Attention4

Margins are compressing
EBITDA margin has slipped from 6.3% to -1.3% over 3 years.
Debt is rising
Total debt is up 101% over 3 years — worth checking what it funded.
Return on equity is falling
ROE has dropped from 7.3% to -20.6% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 11.4% to -11.7% — often a sign of competition or overexpansion.

Red Flags

5 items require attention · 4 high · 1 watch

🔴Debt has risen sharplyFinancial
Total debt is up 101% over 3 years, from ₹113 Cr to ₹227 Cr.
🔴Thin interest coverageFinancial
Operating profit covers interest only -2.7x — little room if earnings dip.
🔴The company is lossmakingFinancial
Net profit of -₹102 Cr in the latest reported year.
🔴Significant margin compressionFinancial
EBITDA margin has fallen 7.5 points, from 6.3% to -1.3%.
🟡Interest coverage is deterioratingFinancial
Cover has fallen from 0.7x to -2.7x.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Self-funding with balance-sheet headroom
Positive free cash flow of ₹78 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?

Margins are being competed away
EBITDA margin has fallen from 6.3% to -1.3%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Returns on shareholder capital are falling
ROE has dropped from 7.3% to -20.6%. 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.
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.
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 -3%✓ -1.3%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Interest cover stays above 3x✗ -2.7x
How much operating profit can fall before interest stops being comfortably covered.
3Free cash flow remains positive✓ ₹78 Cr
Profit that never becomes cash eventually stops being profit.
4ROCE stays above 8%✗ -11.7%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

7 / 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

3 good · 3 neutral · 5 weak

Market Cap

₹785 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

1.59x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹-0.79

Loss-making

Negative earnings per share — the business is losing money

ROE

-20.6%

Weak

Weak capital efficiency

ROCE

-11.7%

Weak

Low return on total capital employed

Debt/Equity

0.46x

Low

Conservative leverage

Revenue Growth (YoY)

-12.9%

Shrinking

Sales are contracting

Profit Growth (YoY)

6151.5%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.20%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

₹78 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

CMP

₹495.4

Operating Margin

7.9%

Average

Average margins

Net Margin

-0.1%

Weak

Very little revenue reaches the bottom line

Current Ratio

1.18

Adequate

Adequate, but no real cushion

Beta (vs Nifty)

0.20

Defensive

Steadier than the market

52W Range Position

55%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

462.7 / 446.0

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

64.9

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹1,629 Cr	₹1,556 Cr	₹1,706 Cr	₹1,392 Cr	-5.1%
EBITDA	₹102 Cr	₹57 Cr	₹50 Cr	-₹18 Cr	—
EBITDA Margin	6.3%	3.6%	2.9%	-1.3%	—
PAT (Net Profit)	₹42 Cr	₹18 Cr	-₹4 Cr	-₹102 Cr	—
EPS	₹26.9	₹11.33	₹-2.28	₹-64.2	—
ROE	7.3%	3.0%	-0.6%	-20.6%	—
ROCE	11.4%	4.8%	2.1%	-11.7%	—
Total Debt	₹113 Cr	₹96 Cr	₹265 Cr	₹227 Cr	+26.2%
Free Cash Flow	-₹202 Cr	₹57 Cr	-₹171 Cr	₹78 Cr	—

🔴 Revenue has shrunk at 5.1% a year over 3 years.

🔴 EBITDA has turned negative, from ₹102 Cr to -₹18 Cr.

🔴 EBITDA Margin has fallen from 6.3% to -1.3% over 3 years (-7.5 pts).

🔴 PAT (Net Profit) has turned negative, from ₹42 Cr to -₹102 Cr.

🔴 EPS has turned negative, from ₹26.9 to ₹-64.2.

🔴 ROE has fallen from 7.3% to -20.6% over 3 years (-27.8 pts).

🔴 ROCE has fallen from 11.4% to -11.7% over 3 years (-23.1 pts).

🔴 Total Debt has grown at 26.2% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹202 Cr to ₹78 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹1,211 Cr

Total Liabilities

₹716 Cr

Total Debt

₹227 Cr

Cash & Equivalents

₹45 Cr

Operating Cash Flow

₹109 Cr

Capex

-₹31 Cr

Shareholding (proxy)

Institutional Holding

0.1%

Insider Holding

68.7%

Corporate Actions

Dividend Rate

₹1

Ex-Dividend Date

27 Jul 2026

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

1 positive1 mixed4 general

Everest Industries pays ₹112.93 crore call to subsidiary Everest Buildpro

scanx.trade, 16 Oct

Everest Industries Share Price gains as stock rises 9.02%

Univest, 06 OctPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Do These 3 Checks Before Buying Everest Industries Limited (NSE:EVERESTIND) For Its Upcoming Dividend

Simply Wall Street, 23 JulCapital return

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

Everest Industries Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 30 Aug

Everest Ind Standalone June 2026 Net Sales at Rs 418.70 crore, down 13.99% Y-o-Y

Moneycontrol.com, 03 Aug

Everest Industries Ltd. Upper Circuit Today: Price, Data and Peers

Univest, 29 Sept

Watch Items

Revenue growth is negative (-12.9%) 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.

DalalBaazaar Thesis

🔴Business QualityWeak4.7/20

🟡Financial HealthAdequate11.7/20

🔴GrowthWeak5/20

🔴ProfitabilityWeak2.5/15

🔴ValuationDemanding5.1/15

🔴RiskHigh4.4/10

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.

This thesis breaks if

✓EBITDA margin holds above -3%-1.3%
✗Interest cover stays above 3x-2.7x
✓Free cash flow remains positive₹78 Cr
✗ROCE stays above 8%-11.7%