Hardwyn India Limited

Industrials — Building Products & Equipment · NSE

₹9.08−₹0.04 (−0.44%)

DalalBaazaar Score

51 / 100

🟡 Moderate

Verdict

CAUTION

Risk

High

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

In simple words: The business is earning a fairly low return on the money invested in it, but sales are shrinking. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:01 pm

Understanding the Business

Company site ↗

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

What does this company do?

Hardwyn India Limited engages in wholesale and retail trade of architectural hardware and glass fittings, kitchen hardware, accessories, and appliances in India.

IndustryBuilding Products & Equipment

SectorIndustrials

Annual revenue₹200 Cr

How does it make money?

Turns over ₹200 Cr a year. Of every ₹100 of sales, about ₹7 reaches shareholders as profit, with ₹11 left at the operating level before interest, tax and depreciation.

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.

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 ROE15.2%

What has been driving growth?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved +21% while net margin moved +17% 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+21%

Margin effect+17%

DalalBaazaar Score

51/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ ROCE of 4.8% is below 10% — capital is not working hard
• ROCE has been broadly stable
✗ EBITDA margin of 10.9% is thin — little cushion if costs rise
✗ Net margin of 6.5% is slim
• Revenue has compounded at 6.7% a year, which is the base these returns are earned on

Quality vs. Valuation

Company Quality

49/ 100

Average

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

Valuation

55/ 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

47.8x

3Y Median

87.5x

40 monthly readings · mean 94.8x · range 46.9x–164.3x

Sector Median

88.8x

median of 3 sector peers

🟢Current valuation is approximately 45% below its 3y median of 87.5x. 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 46% below the peer median of 88.8x.

vs. its own history

Cheap

87.5x median over 40 months · -45%

vs. sector peers

Cheap

88.8x median of 3 peers · -46%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

28.8x

PEG

3.83

What's Good / What's Bad

🟢 What's Going Well3

Margins are improving
EBITDA margin is up from 8.5% to 10.9% over 3 years.
Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.
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

4 items require attention · 2 high · 2 watch

🔴High leverageFinancial
Debt/Equity of 1.56x — earnings must service borrowings before shareholders see anything.
🔴Receivables growing faster than salesFinancial
Receivables up 85% against revenue up 21% — sales are being booked faster than they are collected.
🟡Debt is increasingFinancial
Total debt is up 41% over 3 years.
🟡Inventory building faster than salesFinancial
Inventory up 50% against revenue up 21% — stock may not be moving.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 8.5% to 10.9%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Priced below its own history
The stock trades 45% 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 46% 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?

Leverage amplifies any setback
Debt/Equity of 1.56x. Interest is payable whether or not the business has a good year.
Sales are being booked faster than collected
Receivables are up 85% against revenue up 21%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
Growth barely outpaces inflation
Revenue compounding at 6.7% 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.
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
2 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 9%✓ 10.9%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Revenue growth stays above 5% a year✓ 6.7% CAGR
Latest reported year was -19.4%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
3Free cash flow remains positive✓ ₹5 Cr
Profit that never becomes cash eventually stops being profit.
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%✗ 4.8%
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

3 good · 3 neutral · 5 weak

Market Cap

₹621 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

47.8x

Expensive

Expensive — verify against sector peers

P/B Ratio

1.53x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹0.19

Profitable

Profitable on a per-share basis

ROE

3.3%

Weak

Weak capital efficiency

ROCE

4.8%

Weak

Low return on total capital employed

Debt/Equity

1.56x

High

High leverage

Revenue Growth (YoY)

-19.4%

Shrinking

Sales are contracting

Profit Growth (YoY)

20.0%

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

₹5 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

11.5%

Average

Average margins

Net Margin

6.5%

Average

Average bottom-line conversion

Current Ratio

2.13

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

-0.29

Defensive

Steadier than the market

52W Range Position

12%

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

9.2 / 9.5

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

41.2

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹165 Cr	₹153 Cr	₹185 Cr	₹200 Cr	+6.7%
EBITDA	₹14 Cr	₹17 Cr	₹19 Cr	₹22 Cr	+15.6%
EBITDA Margin	8.5%	11.1%	10.2%	10.9%	—
PAT (Net Profit)	₹9 Cr	₹10 Cr	₹11 Cr	₹13 Cr	+12.5%
EPS	₹0.14	₹0.15	₹0.16	₹0.19	+11.9%
ROE	2.5%	2.7%	2.9%	3.3%	—
ROCE	3.7%	4.1%	4.3%	4.8%	—
Total Debt	₹5 Cr	₹9 Cr	₹10 Cr	₹6 Cr	+12.1%
Free Cash Flow	-₹1 Cr	-₹3 Cr	₹1 Cr	₹5 Cr	—

🟢 Revenue has grown at 6.7% a year over 3 years.

🟢 EBITDA has grown at 15.6% a year over 3 years.

🟢 EBITDA Margin has risen from 8.5% to 10.9% over 3 years (+2.3 pts).

🟢 PAT (Net Profit) has grown at 12.5% a year over 3 years.

🟢 EPS has grown at 11.9% a year over 3 years.

🟡 ROE has held roughly flat at 3.3% over 3 years.

🟢 ROCE has risen from 3.7% to 4.8% over 3 years (+1.2 pts).

🔴 Total Debt has grown at 12.1% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹1 Cr to ₹5 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹466 Cr

Total Liabilities

₹54 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

₹7 Cr

Capex

-₹3 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

79.1%

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

3 positive1 mixed2 general

Should You Be Adding Hardwyn India (NSE:HARDWYN) To Your Watchlist Today?

Simply Wall Street, 15 Jul

Hardwyn India Board Approves 2:5 Bonus Issue to Boost Equity Liquidity

Sahi, 08 JunCapital return

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

Hardwyn India Share Price Forecast: 3 Year Outlook to 2030

Univest, 17 Jul

Bonus share alert! Hardwyn India announces 2:5 bonus issue, record date awaited - small-cap stock jumps 2%

Livemint, 09 JunCapital return

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

Hardwyn India Strengthens Growth Trajectory Through Business Expansion and Product Innovation

ThePrint, 07 JulCapacity

🟡Mixed / dependsCapacity additions can raise revenue over two to three years, but the capital spend usually pressures free cash flow first. Worth checking whether the capex is funded from operations or from borrowing.

Bonus Share Alert: Hardwyn India Announces 2:5 Bonus Issue; Record Date Awaited

Samco, 09 JunCapital return

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

Watch Items

Revenue growth is negative (-19.4%) 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

StrongFinancial Health

MiddlingGrowth · Valuation · Risk

WeakBusiness Quality · Profitability

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

1 of 5 tripwires tripped — ROCE stays above 8% · see Key things to watch ↑