Him Teknoforge Limited

Consumer Cyclical — Auto Parts · BSE

₹286.10+₹13.60 (+4.99%)

DalalBaazaar Score

44 / 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 Him Teknoforge Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Him Teknoforge Limited engages in the manufacture, marketing, distribution, and sale of automotive, non-automotive, and engineering components in India and internationally.

IndustryAuto Parts

SectorConsumer Cyclical

Employees1,303

Annual revenue₹408 Cr

How does it make money?

Turns over ₹408 Cr a year. Of every ₹100 of sales, about ₹3 reaches shareholders as profit, with ₹11 left at the operating level before interest, tax and depreciation. Each of its 1,303 employees supports ₹31.3 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹31.3 lakh

Who are its competitors?

The closest listed comparisons in its industry are BOSCH LIMITED, MARUTI SUZUKI INDIA LTD., TVS MOTOR COMPANY LTD, EICHER MOTORS 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 10.6% 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 ROE23.0%

What has been driving growth?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved +8% while net margin moved +9% 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+8%

Margin effect+9%

DalalBaazaar Score

44/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ ROE of 5.2% is weak

Quality vs. Valuation

Company Quality

39/ 100

Weak

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

Valuation

62/ 100

Fair

What you are being asked to pay, ignoring how good the business is.

Weak on business quality and not cheap enough to compensate.

Historical Valuation

Current P/E

20.0x

3Y Median

18.2x

40 monthly readings · mean 17.8x · range 8.3x–26.4x

Sector Median

45.7x

median of 4 sector peers

⚠️Current valuation is approximately 10% above its 3y median of 18.2x. Paying more than usual needs a reason — faster growth, a better balance sheet, or a re-rating you believe in.

🟢Against its sector it trades 56% below the peer median of 45.7x.

vs. its own history

Fair

18.2x median over 40 months · +10%

vs. sector peers

Cheap

45.7x median of 4 peers · -56%

vs. generic bands

Fair

15x–35x

EV/EBITDA

10.5x

PEG

3.52

What's Good / What's Bad

🟢 What's Going Well1

Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention1

Return on capital is falling
ROCE has declined from 13.3% to 10.6% — often a sign of competition or overexpansion.

Red Flags

3 items require attention · 1 high · 2 watch

🔴Receivables growing faster than salesFinancial
Receivables up 62% against revenue up 8% — sales are being booked faster than they are collected.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹21 Cr in the latest year.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 31% 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 56% 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?

The debt load needs earnings to hold up
Debt is 3.8x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
Sales are being booked faster than collected
Receivables are up 62% against revenue up 8%. 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 2.7% 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.

🟡 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.
2Debt / EBITDA falls below 3x✗ 3.8x
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✗ -₹21 Cr
Profit that never becomes cash eventually stops being profit.
4Interest cover stays above 3x✗ 2.1x
How much operating profit can fall before interest stops being comfortably covered.
5Revenue growth stays above 4% a year✗ 2.7% CAGR
Latest reported year was 17.4%. The bar is set below the established compounding rate, so ordinary variation does not trip it.

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 · 5 neutral · 2 weak

Market Cap

₹296 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

20.0x

Fair

Fairly valued against the generic band

P/B Ratio

1.11x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹14.28

Profitable

Profitable on a per-share basis

ROE

5.2%

Weak

Weak capital efficiency

ROCE

10.6%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.70x

Moderate

Moderate leverage

Revenue Growth (YoY)

17.4%

Healthy

Healthy top-line growth

Profit Growth (YoY)

32.3%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.28%

Modest

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

Free Cash Flow

-₹21 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

8.9%

Average

Average margins

Net Margin

3.1%

Average

Average bottom-line conversion

Current Ratio

1.47

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.56

Defensive

Steadier than the market

52W Range Position

89%

Near high

Near its 52-week high

Technical Snapshot

SMA 20 / SMA 50

261.3 / 267.4

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

65.1

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹377 Cr	₹348 Cr	₹378 Cr	₹408 Cr	+2.7%
EBITDA	₹41 Cr	₹35 Cr	₹41 Cr	₹45 Cr	+3.2%
EBITDA Margin	10.8%	9.9%	10.7%	10.9%	—
PAT (Net Profit)	₹11 Cr	₹7 Cr	₹10 Cr	₹13 Cr	+5.7%
EPS	₹13.58	₹9.04	₹11.67	₹13.26	-0.8%
ROE	6.2%	4.0%	4.4%	5.2%	—
ROCE	13.3%	10.2%	11.1%	10.6%	—
Total Debt	₹149 Cr	₹150 Cr	₹151 Cr	₹171 Cr	+4.7%
Free Cash Flow	₹12 Cr	₹8 Cr	-₹21 Cr	-₹21 Cr	—

🟢 Revenue has grown at 2.7% a year over 3 years.

🟢 EBITDA has grown at 3.2% a year over 3 years.

🟡 EBITDA Margin has held roughly flat at 10.9% over 3 years.

🟢 PAT (Net Profit) has grown at 5.7% a year over 3 years.

🟡 EPS has been broadly flat over 3 years (-0.8% a year).

🔴 ROE has fallen from 6.2% to 5.2% over 3 years (-1.0 pts).

🔴 ROCE has fallen from 13.3% to 10.6% over 3 years (-2.8 pts).

🔴 Total Debt has grown at 4.7% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹12 Cr to -₹21 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹509 Cr

Total Liabilities

₹265 Cr

Cash & Equivalents

₹1 Cr

Operating Cash Flow

₹20 Cr

Capex

-₹41 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

65.3%

Corporate Actions

Dividend Rate

₹0.8

Ex-Dividend Date

23 Sept 2026

Peer Comparison

Company	P/E	ROE
BOSCH LIMITED	56.9x	15.9%
MARUTI SUZUKI INDIA LTD.	25.2x	13.4%
TVS MOTOR COMPANY LTD	56.8x	35.8%
EICHER MOTORS LTD	34.7x	23.0%

Recent News

1 positive5 general

Him Teknoforge Upper Circuit Streak: Day 2 Price and Data

Univest, 16 Oct

Him Teknoforge Upper Circuit Today: Price, Data and Peers

Univest, 15 Oct

Him Teknoforge Ltd is Rated Hold

MarketsMojo, 05 Oct

Him Teknoforge signs MOU with Richard Neumayer for forging cooperation

scanx.trade, 08 Oct

Him Teknoforge Limited Approves Dividend for the Financial Year Ended on 31 March, 2026

www.marketscreener.com, 01 OctCapital return

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

Him Teknoforge Ltd. Key Financial Ratios – Valuation, Profitability & More

Value Research, 30 Aug

Watch Items

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

DalalBaazaar Thesis

StrongValuation

MiddlingBusiness Quality

WeakFinancial Health · Growth · Profitability · Risk

Points for each in the Score ↑

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. 1 high-severity red flag sits above this conclusion and should be read first.

4 of 5 tripwires tripped — Debt / EBITDA falls below 3x; Free cash flow remains positive; Interest cover stays above 3x; Revenue growth stays above 4% a year · see Key things to watch ↑