Filtron Engineers Limited

Industrials — Specialty Industrial Machinery · BSE

₹73.20−₹3.80 (−4.94%)

DalalBaazaar Score

46 / 100

🟡 Moderate

Verdict

CAUTION

Risk

Moderate

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

In simple words: The business is earning a fairly low return on the money invested in it, with both sales and profits growing well. Cash generation is currently 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 Filtron Engineers Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Filtron Engineers Limited engages in the manufacture and supply of dairy, food, beverages, and chemical equipment in India.

IndustrySpecialty Industrial Machinery

SectorIndustrials

Employees4

Annual revenue₹76 Cr

How does it make money?

Turns over ₹76 Cr a year. Of every ₹100 of sales, about ₹5 reaches shareholders as profit, with ₹5 left at the operating level before interest, tax and depreciation. Each of its 4 employees supports ₹19.02 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹19.02 Cr

Who are its competitors?

The closest listed comparisons in its industry are SIEMENS LTD, ABB INDIA LIMITED, LARSEN & TOUBRO LTD., 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 4.8% 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%

DalalBaazaar Score

46/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ ROCE of 4.8% is below 10% — capital is not working hard
✗ EBITDA margin of 4.9% is thin — little cushion if costs rise
✗ Net margin of 5.9% is slim

Quality vs. Valuation

Company Quality

47/ 100

Average

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

Valuation

59/ 100

Fair

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

33.9x

Sector Median

66.2x

median of 4 sector peers

🟢Against its sector it trades 49% below the peer median of 66.2x.

vs. its own history

Not enough price and earnings history

vs. sector peers

Cheap

66.2x median of 4 peers · -49%

vs. generic bands

Fair

15x–35x

EV/EBITDA

127.0x

PEG

—

What's Good / What's Bad

🟢 What's Going Well1

Very low debt
Debt/Equity of 0.27x leaves the balance sheet with plenty of headroom.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

4 items require attention · 3 high · 1 watch

🔴Debt has risen sharplyFinancial
Total debt is up 437% over 3 years, from ₹3 Cr to ₹16 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.
🔴Profit up while operating cash flow fallsFinancial
Reported profit rose but cash generated by operations declined — worth checking whether earnings are being supported by non-cash items or working capital.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 2328% over 3 years — each existing share owns a smaller slice of the company.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Cheaper than its peers
It trades 49% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.

🔴 Bear CaseWhat could go wrong?

The debt load needs earnings to hold up
Debt is 4.3x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
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
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

1EBITDA margin holds above 3%✓ 4.9%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA falls below 3x✗ 4.3x
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✗ -₹23 Cr
Profit that never becomes cash eventually stops being profit.
4ROCE stays above 8%✗ 4.8%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

6 / 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

4 good · 4 neutral · 3 weak

Market Cap

₹465 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

33.9x

Fair

Fairly valued against the generic band

P/B Ratio

2.44x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹2.16

Profitable

Profitable on a per-share basis

ROE

6.9%

Weak

Weak capital efficiency

ROCE

4.8%

Weak

Low return on total capital employed

Debt/Equity

0.27x

Low

Conservative leverage

Revenue Growth (YoY)

30328.3%

Healthy

Healthy top-line growth

Profit Growth (YoY)

1486.5%

Healthy

Profits growing at a healthy clip

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

-₹23 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

10.5%

Average

Average margins

Net Margin

5.9%

Average

Average bottom-line conversion

Current Ratio

1.53

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.83

Market-like

Moves roughly in line with the market

52W Range Position

54%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

72.8 / 74.8

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

52.1

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	—	—	₹0 Cr	₹76 Cr	—
EBITDA	-₹1 Cr	-₹0 Cr	-₹0 Cr	₹4 Cr	—
EBITDA Margin	—	—	-68.4%	4.9%	—
PAT (Net Profit)	-₹1 Cr	-₹0 Cr	-₹0 Cr	₹4 Cr	—
EPS	₹-1.95	₹-1.33	₹-1.14	₹2.06	—
Total Debt	₹3 Cr	₹3 Cr	₹4 Cr	₹16 Cr	+75.1%
Free Cash Flow	-₹1 Cr	-₹0 Cr	-₹1 Cr	-₹23 Cr	—

🟢 EBITDA has turned positive, from -₹1 Cr to ₹4 Cr.

🟢 EBITDA Margin has risen from -68.4% to 4.9% over 3 years (+73.3 pts).

🟢 PAT (Net Profit) has turned positive, from -₹1 Cr to ₹4 Cr.

🟢 EPS has turned positive, from ₹-1.95 to ₹2.06.

🔴 Total Debt has grown at 75.1% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹126 Cr

Total Liabilities

₹66 Cr

Cash & Equivalents

₹5 Cr

Operating Cash Flow

-₹23 Cr

Capex

-₹0 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

89.3%

Corporate Actions

Ex-Dividend Date

27 Aug 1996

Peer Comparison

Company	P/E	ROE
SIEMENS LTD	88.8x	10.5%
ABB INDIA LIMITED	92.6x	19.1%
LARSEN & TOUBRO LTD.	30.1x	15.2%
HAVELLS INDIA LIMITED	43.5x	17.1%

Recent News

1 negative5 general

Filtron Engineers Ltd. Key Financial Ratios – Valuation, Profitability & More

Value Research, 31 Aug

Jayesh Rawal Acquires 35.42% Stake in Filtron Engineers via Preferential Allotment

scanx.trade, 27 Aug

Filtron Engineers AGM resolutions pass with over 99% votes in favor

scanx.trade, 03 Oct

Filtron Engineers Ltd. Peer Comparison – Compare with Others

Value Research, 31 Aug

Filtron Engineers sets Sep 30 AGM date; seeks ₹37.55 crore RPT approval

scanx.trade, 08 Sept

Filtron Engineers Q1 Results: Consolidated revenue falls 71% YoY to ₹222.6 crore

scanx.trade, 17 AugResults

🔴Potentially negativeReported deterioration, which feeds the growth and margin inputs on this page directly.

Watch Items

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

DalalBaazaar Thesis

StrongFinancial Health

MiddlingGrowth · Valuation

WeakBusiness Quality · Profitability · Risk

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.

3 of 4 tripwires tripped — Debt / EBITDA falls below 3x; Free cash flow remains positive; ROCE stays above 8% · see Key things to watch ↑