Frontier Springs Limited

Industrials — Metal Fabrication · NSE

₹1,376.90−₹11.90 (−0.86%)

DalalBaazaar Score

68 / 100

🟢 Good

Verdict

NEUTRAL

Risk

High

Driven by high debt relative to equity, micro-cap size, which brings thin liquidity, falling profits.

In simple words: Strong business and financial position, 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, 7:46 pm

Understanding the Business

Company site ↗

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

What does this company do?

Frontier Springs Limited engages in the production and sale of L.H.B. springs, hot coiled compression springs, air springs, and forging items in India.

IndustryMetal Fabrication

SectorIndustrials

Employees248

Annual revenue₹317 Cr

How does it make money?

Turns over ₹317 Cr a year. Of every ₹100 of sales, about ₹19 reaches shareholders as profit, with ₹27 left at the operating level before interest, tax and depreciation. Each of its 248 employees supports ₹1.28 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹1.28 Cr

Who are its competitors?

The closest listed comparisons in its industry are TATA STEEL LIMITED, JSW STEEL LIMITED, HINDALCO INDUSTRIES LTD, VEDANTA 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?Some evidence

ROCE of 43.6% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

Peer median ROE18.7%

What has been driving growth?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved +204% while net margin moved +178% 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+204%

Margin effect+178%

DalalBaazaar Score

68/ 100

Good

Weighted across six categories. Every point is explained below.

• P/E of 26.7x already prices in growth
✗ P/B of 8.87x is a steep premium to book

Quality vs. Valuation

Company Quality

79/ 100

Good

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

Valuation

47/ 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

26.7x

Sector Median

12.2x

median of 4 sector peers

⚠️Against its sector it trades 119% above the peer median of 12.2x.

vs. its own history

Not enough price and earnings history

vs. sector peers

Expensive

12.2x median of 4 peers · +119%

vs. generic bands

Fair

15x–35x

EV/EBITDA

18.9x

PEG

0.26

What's Good / What's Bad

🟢 What's Going Well6

Margins are improving
EBITDA margin is up from 12.8% to 27.4% over 3 years.
Cash generation is improving
Free cash flow is up 1438% over 3 years.
Return on equity is rising
ROE has improved from 9.7% to 33.4%.
Return on capital is rising
ROCE has improved from 12.8% to 43.6%.
High return on capital employed
ROCE of 43.6% is the mark of a business that converts capital into profit efficiently.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

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

Red Flags

3 items require attention · 3 high

🔴Debt has risen sharplyFinancial
Total debt is up 134% over 3 years, from ₹5 Cr to ₹11 Cr.
🔴High leverageFinancial
Debt/Equity of 5.89x — earnings must service borrowings before shareholders see anything.
🔴Receivables growing faster than salesFinancial
Receivables up 275% against revenue up 204% — sales are being booked faster than they are collected.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 43.6% 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.
Margin expansion has further to run
EBITDA margin has risen from 12.8% to 27.4%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
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?

Leverage amplifies any setback
Debt/Equity of 5.89x. Interest is payable whether or not the business has a good year.
Sales are being booked faster than collected
Receivables are up 275% against revenue up 204%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
A premium to the sector to defend
It trades 119% above the peer median. That premium needs a reason that persists, or it closes.
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

1Revenue growth stays above 34% a year✓ 44.9% CAGR
Latest reported year was 4.1%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 25%✓ 27.4%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✓ ₹17 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 41%✓ 43.6%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

8 / 10 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

Price history

Quick Metrics

4 good · 4 neutral · 3 weak

Market Cap

₹1,627 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

26.7x

Fair

Fairly valued against the generic band

P/B Ratio

8.87x

Rich

Steep premium to book — needs high, durable returns to justify

EPS (TTM)

₹51.61

Profitable

Profitable on a per-share basis

ROE

33.4%

Strong

Strong capital efficiency

ROCE

43.6%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

5.89x

High

High leverage

Revenue Growth (YoY)

4.1%

Modest

Modest growth

Profit Growth (YoY)

-23.9%

Falling

Profits are shrinking

Dividend Yield

0.05%

Modest

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

Free Cash Flow

₹17 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

22.9%

Good

Healthy core-business profitability

Net Margin

18.0%

Good

Strong bottom-line conversion

Current Ratio

3.53

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.46

Defensive

Steadier than the market

52W Range Position

54%

Mid-range

Technical Snapshot

RSI (14)

41.0

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹104 Cr	₹132 Cr	₹227 Cr	₹317 Cr	+44.9%
EBITDA	₹13 Cr	₹21 Cr	₹50 Cr	₹87 Cr	+86.8%
EBITDA Margin	12.8%	16.0%	22.0%	27.4%	—
PAT (Net Profit)	₹7 Cr	₹13 Cr	₹35 Cr	₹61 Cr	+103.8%
EPS	₹6.13	₹10.99	₹29.34	₹51.89	+103.8%
ROE	9.7%	14.5%	28.0%	33.4%	—
ROCE	12.8%	18.9%	36.1%	43.6%	—
Total Debt	₹5 Cr	₹4 Cr	₹6 Cr	₹11 Cr	+32.7%
Free Cash Flow	₹1 Cr	₹4 Cr	₹7 Cr	₹17 Cr	+148.7%

🟢 Revenue has grown at 44.9% a year over 3 years.

🟢 EBITDA has grown at 86.8% a year over 3 years.

🟢 EBITDA Margin has risen from 12.8% to 27.4% over 3 years (+14.6 pts).

🟢 PAT (Net Profit) has grown at 103.8% a year over 3 years.

🟢 EPS has grown at 103.8% a year over 3 years.

🟢 ROE has risen from 9.7% to 33.4% over 3 years (+23.7 pts).

🟢 ROCE has risen from 12.8% to 43.6% over 3 years (+30.7 pts).

🔴 Total Debt has grown at 32.7% a year over 3 years.

🟢 Free Cash Flow has grown at 148.7% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹218 Cr

Total Liabilities

₹35 Cr

Cash & Equivalents

₹1 Cr

Operating Cash Flow

₹31 Cr

Capex

-₹15 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

63.6%

Corporate Actions

Dividend Rate

₹0.7

Ex-Dividend Date

15 Sept 2026

Peer Comparison

Company	P/E	ROE
TATA STEEL LIMITED	19.8x	10.8%
JSW STEEL LIMITED	12.0x	24.7%
HINDALCO INDUSTRIES LTD	12.3x	12.0%
VEDANTA LIMITED	10.4x	18.7%

Recent News

2 positive1 mixed1 negative2 general

Frontier Springs Ltd. Share Price Drops; Fundamental View

Univest, 13 AugPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

Frontier Springs confirms AGM voting results; dividend approved

scanx.trade, 22 SeptCapital return

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

Frontier Springs Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 31 Aug

FRONTSP Stock Price and Chart — NSE:FRONTSP

TradingView, 20 Apr

Frontier Springs standalone net profit declines 18.52% in the June 2026 quarter

Business Standard, 13 AugResults

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

Frontier Springs Falls 5% After Revising Record Date For 2:1 Bonus Issue

HDFC Sky, 13 MarCapital return

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

Watch Items

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

DalalBaazaar Thesis

StrongBusiness Quality · Growth · Profitability

MiddlingFinancial Health

WeakValuation · Risk

Points for each in the Score ↑

Good business at a fair price

A sound business at a reasonable valuation. Suitable for a long-term holding, with the valuation and the direction of margins worth watching rather than the business itself. 3 high-severity red flags sit above this conclusion and should be read first.

All 5 tripwires holding · see Key things to watch ↑