HY-TECH ENGINEERS LIMITED

Industrials — Specialty Industrial Machinery · NSE

₹85.48−₹2.32 (−2.64%)

DalalBaazaar Score

58 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

Low

Driven by micro-cap size, which brings thin liquidity.

In simple words: Strong business and financial position, with both sales and profits growing well. Nothing on this snapshot stands out as an immediate concern — the usual checks on business quality and management still apply.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:54 pm

Understanding the Business

Company site ↗

The 60-second version of HY-TECH ENGINEERS LIMITED — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Hy-Tech Engineers Limited designs, manufactures, and supplies hydraulic fittings to various industrial applications in India and internationally.

IndustrySpecialty Industrial Machinery

SectorIndustrials

Employees468

Annual revenue₹183 Cr

How does it make money?

Turns over ₹183 Cr a year. Of every ₹100 of sales, about ₹12 reaches shareholders as profit, with ₹25 left at the operating level before interest, tax and depreciation. Each of its 468 employees supports ₹39.0 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹39.0 lakh

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?The numbers suggest a real one

ROCE has stayed above 15% in every year available and stands at 24.3%. Returns that high normally get competed away; when they persist, something is protecting them, and its ROE of 18.5% against a peer median of 17.1% is consistent with that. What that something is — brand, scale, switching costs, regulation — the accounts cannot tell you.

Peer median ROE17.1%

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 +43% while net margin moved -13% 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+43%

Margin effect-13%

DalalBaazaar Score

58/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Micro Cap: thinner liquidity and sharper drawdowns are normal

Quality vs. Valuation

Company Quality

69/ 100

Good

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

Valuation

46/ 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

35.2x

Sector Median

66.2x

median of 4 sector peers

🟢Against its sector it trades 47% 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 · -47%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

18.6x

PEG

4.47

What's Good / What's Bad

🟢 What's Going Well3

High return on capital employed
ROCE of 24.3% is the mark of a business that converts capital into profit efficiently.
Very low debt
Debt/Equity of 0.24x leaves the balance sheet with plenty of headroom.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention3

Margins are compressing
EBITDA margin has slipped from 26.2% to 24.7% over 3 years.
Return on equity is falling
ROE has dropped from 25.2% to 18.5% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 32.7% to 24.3% — often a sign of competition or overexpansion.

Red Flags

1 item require attention · 1 watch

🟡Debt is increasingFinancial
Total debt is up 40% over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 24.3% 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.
Cheaper than its peers
It trades 47% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Self-funding with balance-sheet headroom
Positive free cash flow of ₹19 Cr alongside low debt means growth, buybacks or dividends need no outside money — and a downturn can be absorbed rather than refinanced.
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?

Margins are being competed away
EBITDA margin has fallen from 26.2% to 24.7%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Returns on shareholder capital are falling
ROE has dropped from 25.2% to 18.5%. 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.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 10% a year✓ 12.8% CAGR
Latest reported year was 13.4%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 23%✓ 24.7%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✓ ₹19 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.7x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 21%✓ 24.3%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

10 / 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

7 good · 3 neutral · 1 weak

Market Cap

₹811 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

35.2x

Fair

Fairly valued against the generic band

P/B Ratio

5.85x

Rich

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

EPS (TTM)

₹2.43

Profitable

Profitable on a per-share basis

ROE

18.5%

Strong

Strong capital efficiency

ROCE

24.3%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.24x

Low

Conservative leverage

Revenue Growth (YoY)

13.4%

Healthy

Healthy top-line growth

Profit Growth (YoY)

10.0%

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

₹19 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

14.2%

Average

Average margins

Net Margin

11.8%

Good

Strong bottom-line conversion

Current Ratio

2.93

Comfortable

Healthy short-term liquidity

52W Range Position

55%

Mid-range

Technical Snapshot

RSI (14)

65.1

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹127 Cr	₹132 Cr	₹155 Cr	₹183 Cr	+12.8%
EBITDA	₹33 Cr	₹28 Cr	₹39 Cr	₹45 Cr	+10.6%
EBITDA Margin	26.2%	21.1%	24.9%	24.7%	—
PAT (Net Profit)	₹18 Cr	₹12 Cr	₹20 Cr	₹23 Cr	+7.9%
EPS	₹1.9	₹1.22	₹2.07	₹2.38	+7.9%
ROE	25.2%	14.1%	19.4%	18.5%	—
ROCE	32.7%	17.7%	24.3%	24.3%	—
Total Debt	₹21 Cr	₹41 Cr	₹44 Cr	₹30 Cr	+12.0%
Free Cash Flow	₹17 Cr	-₹10 Cr	₹2 Cr	₹19 Cr	+2.4%

🟢 Revenue has grown at 12.8% a year over 3 years.

🟢 EBITDA has grown at 10.6% a year over 3 years.

🔴 EBITDA Margin has fallen from 26.2% to 24.7% over 3 years (-1.5 pts).

🟢 PAT (Net Profit) has grown at 7.9% a year over 3 years.

🟢 EPS has grown at 7.9% a year over 3 years.

🔴 ROE has fallen from 25.2% to 18.5% over 3 years (-6.7 pts).

🔴 ROCE has fallen from 32.7% to 24.3% over 3 years (-8.3 pts).

🔴 Total Debt has grown at 12.0% a year over 3 years.

🟢 Free Cash Flow has grown at 2.4% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹176 Cr

Total Liabilities

₹54 Cr

Cash & Equivalents

₹3 Cr

Operating Cash Flow

₹30 Cr

Capex

-₹12 Cr

Shareholding (proxy)

Institutional Holding

2.6%

Insider Holding

75.0%

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

2 mixed4 general

Strong market debut: Hy-Tech Engineers shares list at 41% premium on NSE; should you buy, sell or hold?

Moneycontrol.com, 01 Sept

Hy-Tech Engineers IPO GMP Today: GMP at ₹22, Estimated Listing Gain of 41.51%

India Infoline, 21 Aug

Hy-Tech Engineers IPO Day 4: GMP signals 83% premium, subscription hits 50.86x

The Economic Times, 27 Aug

Hy-Tech Engineers share price locked in 5% upper circuit after bumper debut. Should you buy, sell or hold?

Livemint, 01 Sept

Hy-Tech Engineers IPO: Valuations, growth outlook make analysts bullish

Business Standard, 21 AugAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Hy-Tech Engineers Shares Soar 41.5% in Market Debut

Rediff MoneyWiz, 01 SeptPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Watch Items

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

DalalBaazaar Thesis

StrongBusiness Quality · Financial Health

MiddlingGrowth · Profitability

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.

All 5 tripwires holding · see Key things to watch ↑