Faalcon Concepts Limited

Industrials — Engineering & Construction · BSE

₹38.51₹0.00 (0.00%)

DalalBaazaar Score

61 / 100

🟢 Good

Verdict

NEUTRAL

Risk

Moderate

Driven by negative free cash flow, micro-cap size, which brings thin liquidity, falling profits.

In simple words: Reasonable but unspectacular business quality, though profits are falling even as sales grow. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:56 pm

Understanding the Business

Company site ↗

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

What does this company do?

Faalcon Concepts Limited engages in designing, engineering, fabrication, and installation of facade systems in India.

IndustryEngineering & Construction

SectorIndustrials

Employees25

Annual revenue₹34 Cr

How does it make money?

Turns over ₹34 Cr a year. Of every ₹100 of sales, about ₹9 reaches shareholders as profit, with ₹19 left at the operating level before interest, tax and depreciation. Each of its 25 employees supports ₹1.35 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹1.35 Cr

Who are its competitors?

The closest listed comparisons in its industry are LARSEN & TOUBRO LTD., ADANI PORT & SEZ LTD, SIEMENS 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?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.

Peer median ROE14.1%

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 +159% while net margin moved -29% 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+159%

Margin effect-29%

DalalBaazaar Score

61/ 100

Good

Weighted across six categories. Every point is explained below.

✗ ROE of 9.9% is weak
✗ ROE has fallen by 46.3 points over the period

Quality vs. Valuation

Company Quality

56/ 100

Average

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

Valuation

88/ 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

10.2x

3Y Median

13.7x

32 monthly readings · mean 15.2x · range 8.4x–32.5x

Sector Median

30.1x

median of 3 sector peers

🟢Current valuation is approximately 25% below its 3y median of 13.7x. 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 66% below the peer median of 30.1x.

vs. its own history

Cheap

13.7x median over 32 months · -25%

vs. sector peers

Cheap

30.1x median of 3 peers · -66%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

7.1x

PEG

0.45

What's Good / What's Bad

🟢 What's Going Well2

Very low debt
Debt/Equity of 0.19x leaves the balance sheet with plenty of headroom.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 53.4% to 7.0% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 64.8% to 10.5% — often a sign of competition or overexpansion.

Red Flags

5 items require attention · 3 high · 2 watch

🔴Debt has risen sharplyFinancial
Total debt is up 350% over 3 years, from ₹2 Cr to ₹9 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 254% against revenue up 159% — sales are being booked faster than they are collected.
🟡Inventory building faster than salesFinancial
Inventory up 199% against revenue up 159% — stock may not be moving.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 43% over 3 years — each existing share owns a smaller slice of the company.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Priced below its own history
The stock trades 25% 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 66% 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?

Sales are being booked faster than collected
Receivables are up 254% against revenue up 159%. 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 53.4% to 7.0%. 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
3 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

1Revenue growth stays above 28% a year✓ 37.4% CAGR
Latest reported year was 26.9%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 17%✓ 18.5%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹0 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 1.4x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
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

5 / 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

5 good · 4 neutral · 2 weak

Market Cap

₹38 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

10.2x

Cheap

Cheap against the generic band

P/B Ratio

0.83x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹3.77

Profitable

Profitable on a per-share basis

ROE

9.9%

Moderate

Moderate capital efficiency

ROCE

10.5%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.19x

Low

Conservative leverage

Revenue Growth (YoY)

26.9%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-4.5%

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

-₹2 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

ROA

6.3%

Average

Average asset productivity

Operating Margin

14.6%

Average

Average margins

Net Margin

9.3%

Average

Average bottom-line conversion

Current Ratio

2.06

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.42

Defensive

Steadier than the market

52W Range Position

31%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

39.1 / 39.9

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

31.2

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹13 Cr	₹19 Cr	₹29 Cr	₹34 Cr	+37.4%
EBITDA	₹3 Cr	₹3 Cr	₹5 Cr	₹6 Cr	+35.4%
EBITDA Margin	19.4%	18.4%	16.2%	18.5%	—
PAT (Net Profit)	₹2 Cr	₹2 Cr	₹3 Cr	₹3 Cr	+22.7%
EPS	₹2.5	₹2.97	₹3.99	—	—
ROE	53.4%	29.2%	12.3%	7.0%	—
ROCE	64.8%	32.5%	18.0%	10.5%	—
Total Debt	₹2 Cr	₹4 Cr	₹6 Cr	₹9 Cr	+65.1%
Free Cash Flow	-₹0 Cr	-₹4 Cr	-₹13 Cr	-₹0 Cr	—

🟢 Revenue has grown at 37.4% a year over 3 years.

🟢 EBITDA has grown at 35.4% a year over 3 years.

🟡 EBITDA Margin has held roughly flat at 18.5% over 3 years.

🟢 PAT (Net Profit) has grown at 22.7% a year over 3 years.

🔴 ROE has fallen from 53.4% to 7.0% over 3 years (-46.3 pts).

🔴 ROCE has fallen from 64.8% to 10.5% over 3 years (-54.3 pts).

🔴 Total Debt has grown at 65.1% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹71 Cr

Total Liabilities

₹25 Cr

Cash & Equivalents

₹2 Cr

Operating Cash Flow

₹0 Cr

Capex

-₹0 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

74.3%

Peer Comparison

Company	P/E	ROE
LARSEN & TOUBRO LTD.	30.1x	15.2%
ADANI PORT & SEZ LTD	29.9x	14.1%
SIEMENS LTD	88.8x	10.5%

Recent News

6 general

Faalcon Concepts Limited Share Price

Upstox, 15 Oct

Faalcon Concepts Ltd

Equitypandit, 04 Apr

Faalcon Concepts Ltd Key Financial Ratios – Valuation, Profitability & More

Value Research, 31 Aug

Faalcon Concepts shareholders approve all FY26 resolutions with 100% votes

scanx.trade, 29 Sept

Faalcon Concepts Ltd Financials – Balance Sheet, Profit & Loss, Cash Flow

Value Research, 29 Aug

Faalcon Concepts approves ₹22 crore rights issue at Sep 14 board meeting

scanx.trade, 14 Sept

Watch Items

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

DalalBaazaar Thesis

StrongFinancial Health · Valuation

MiddlingBusiness Quality · Growth · Risk

WeakProfitability

Points for each in the Score ↑

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. 3 high-severity red flags sit above this conclusion and should be read first.

1 of 5 tripwires tripped — Free cash flow remains positive · see Key things to watch ↑