Indo Tech Transformers Limited

Industrials — Electrical Equipment & Parts · NSE

₹3,060.00−₹50.20 (−1.61%)

DalalBaazaar Score

74 / 100

🟢 Good

Verdict

REASONABLE

Risk

High

Driven by moderate debt load, 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, 6:07 pm

Mixed / neutral. No major red flags jump out, but nothing here screams "obviously cheap" either. This is a name that needs a peer comparison and a view on near-term earnings triggers before sizing a position.

Understanding the Business

Company site ↗

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

What does this company do?

Indo Tech Transformers Limited engages in the manufacture and sale of transformers in India and internationally.

IndustryElectrical Equipment & Parts

SectorIndustrials

Annual revenue₹773 Cr

How does it make money?

Turns over ₹773 Cr a year. Of every ₹100 of sales, about ₹12 reaches shareholders as profit, with ₹17 left at the operating level before interest, tax and depreciation.

EBITDA margin16.8%

Net margin12.0%

Who are its competitors?

The closest listed comparisons in its industry are SIEMENS LTD, ABB INDIA LIMITED, HAVELLS INDIA LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

SIEMENS LTDP/E 88.8x · ROE 10.5%

ABB INDIA LIMITEDP/E 92.6x · ROE 19.1%

HAVELLS INDIA LIMITEDP/E 43.5x · ROE 17.1%

What is its competitive advantage?The numbers suggest a real one

ROCE has stayed above 15% in every year available and stands at 32.7%. Returns that high normally get competed away; when they persist, something is protecting them, and its ROE of 24.8% 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.

ROCE32.7%

ROE24.8%

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 +110% while net margin moved +72% 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+110%

Margin effect+72%

DalalBaazaar Score

74/ 100

Good

Weighted across six categories. Every point is explained below.

• Beta of 0.85 — moves roughly with the market
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal

Quality vs. Valuation

Company Quality

83/ 100

Excellent

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

Valuation

71/ 100

Cheap

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

A good business currently available at an undemanding price — the combination this framework is built to look for.

Historical Valuation

Current P/E

32.7x

3Y Median

41.8x

40 monthly readings · mean 41.8x · range 17.8x–87.9x

Sector Median

88.8x

median of 3 sector peers

🟢Current valuation is approximately 22% below its 3y median of 41.8x. 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 63% below the peer median of 88.8x.

vs. its own history

Cheap

41.8x median over 40 months · -22%

vs. sector peers

Cheap

88.8x median of 3 peers · -63%

vs. generic bands

Fair

15x–35x

P/E (Trailing)

32.7x

P/B

8.69x

EV/EBITDA

24.6x

PEG

0.61

Dividend Yield

0.33%

What's Good / What's Bad

🟢 What's Going Well8

Margins are improving
EBITDA margin is up from 8.8% to 16.8% over 3 years.
Debt is being paid down
Total debt is down 54% over 3 years.
Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.
Return on equity is rising
ROE has improved from 15.0% to 24.8%.
Return on capital is rising
ROCE has improved from 15.9% to 32.7%.
High return on capital employed
ROCE of 32.7% is the mark of a business that converts capital into profit efficiently.
Valuation below its historical average
At 32.7x the stock trades 22% below its own median of 41.8x.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention1

Inventory building faster than sales
Inventory is up 175% against revenue growth of 110% — stock may not be moving.

Red Flags

1 item require attention · 1 high

🔴Inventory building faster than salesFinancial
Inventory up 175% against revenue up 110% — stock may not be moving.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 32.7% 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 8.8% to 16.8%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Deleveraging frees up earnings
Debt is down 54% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
Priced below its own history
The stock trades 22% 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 63% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.

🔴 Bear CaseWhat could go wrong?

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 21% a year✓ 28.1% CAGR
Latest reported year was 39.0%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 15%✓ 16.8%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✓ ₹23 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.0x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 30%✓ 32.7%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

9 / 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

6 good · 4 neutral · 1 weak

Market Cap

₹3,250 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

32.7x

Fair

Fairly valued against the generic band

P/B Ratio

8.69x

Rich

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

EPS (TTM)

₹93.51

Profitable

Profitable on a per-share basis

ROE

24.8%

Strong

Strong capital efficiency

ROCE

32.7%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

1.39x

Moderate

Moderate leverage

Revenue Growth (YoY)

39.0%

Healthy

Healthy top-line growth

Profit Growth (YoY)

34.1%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.33%

Modest

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

Free Cash Flow

₹23 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

CMP

₹3,060

Operating Margin

13.2%

Average

Average margins

Net Margin

11.7%

Good

Strong bottom-line conversion

Current Ratio

2.58

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.85

Market-like

Moves roughly in line with the market

52W Range Position

67%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

3222.0 / 3484.1

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

44.5

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹368 Cr	₹498 Cr	₹606 Cr	₹773 Cr	+28.1%
EBITDA	₹32 Cr	₹80 Cr	₹92 Cr	₹130 Cr	+58.8%
EBITDA Margin	8.8%	16.1%	15.2%	16.8%	—
PAT (Net Profit)	₹26 Cr	₹47 Cr	₹64 Cr	₹93 Cr	+53.4%
EPS	₹24.2	₹44.12	₹60.15	₹87.36	+53.4%
ROE	15.0%	21.6%	22.8%	24.8%	—
ROCE	15.9%	26.9%	30.1%	32.7%	—
Total Debt	₹11 Cr	₹5 Cr	₹8 Cr	₹5 Cr	-22.9%
Free Cash Flow	-₹12 Cr	₹24 Cr	₹40 Cr	₹23 Cr	—

🟢 Revenue has grown at 28.1% a year over 3 years.

🟢 EBITDA has grown at 58.8% a year over 3 years.

🟢 EBITDA Margin has risen from 8.8% to 16.8% over 3 years (+8.0 pts).

🟢 PAT (Net Profit) has grown at 53.4% a year over 3 years.

🟢 EPS has grown at 53.4% a year over 3 years.

🟢 ROE has risen from 15.0% to 24.8% over 3 years (+9.8 pts).

🟢 ROCE has risen from 15.9% to 32.7% over 3 years (+16.8 pts).

🟢 Total Debt has shrunk at 22.9% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹12 Cr to ₹23 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹555 Cr

Total Liabilities

₹181 Cr

Total Debt

₹5 Cr

Cash & Equivalents

₹62 Cr

Operating Cash Flow

₹57 Cr

Capex

-₹34 Cr

Shareholding (proxy)

Institutional Holding

0.2%

Insider Holding

70.3%

Corporate Actions

Dividend Rate

₹10

Ex-Dividend Date

16 Sept 2026

Peer Comparison

Company	P/E	ROE
SIEMENS LTD	88.8x	10.5%
ABB INDIA LIMITED	92.6x	19.1%
HAVELLS INDIA LIMITED	43.5x	17.1%

Recent News

1 positive1 mixed4 general

Indo Tech Transformers (INDOTECH.NS) Slips 1.72% to ₹3198.2 as Bulls Test Near-Term Support - Quality Factor

https://www.siam.in/, 15 Oct

IIFL Asset Management picks up nearly 2% stake in Indo Tech Transformers from promoter

Moneycontrol.com, 29 Jun

Indo Tech Transformers Ltd is Rated Hold

MarketsMojo, 15 Oct

Indo Tech Transformers Q1FY27 net profit rises 34% to ₹257 crore

scanx.trade, 12 AugResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

We Think That There Are Issues Underlying Indo Tech Transformers' (NSE:INDOTECH) Earnings

Simply Wall Street, 28 MayResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Indo Tech Transformers - FIIs, retail investors raise stakes in 10 smallcaps; stocks rally up to 105% in CY26

The Economic Times, 27 Apr

Watch Items

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

DalalBaazaar Thesis

🟢Business QualityStrong15.4/20

🟢Financial HealthStrong15.5/20

🟢GrowthStrong18.5/20

🟢ProfitabilityStrong12.9/15

🟡ValuationFair7.9/15

🔴RiskHigh4/10

Attractive on both counts

A good business currently available at an undemanding price — the combination this framework exists to look for. The work left is qualitative: whether the advantage the numbers imply is one you can identify and expect to last. 1 high-severity red flag sits above this conclusion and should be read first.

This thesis breaks if

✓Revenue growth stays above 21% a year28.1% CAGR
✓EBITDA margin holds above 15%16.8%
✓Free cash flow remains positive₹23 Cr
✓Debt / EBITDA stays below 2x0.0x
✓ROCE stays above 30%32.7%