Indsil Hydro Power and Manganese Limited

Basic Materials — Steel · BSE

₹35.85−₹0.04 (−0.11%)

DalalBaazaar Score

51 / 100

🟡 Moderate

Verdict

CAUTION

Risk

Moderate

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

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

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:09 pm

Caution warranted. Multiple fundamental metrics — flagged in red below — point to either valuation stretch, leverage risk, or weakening profitability. This doesn't mean avoid the stock outright, but it does mean the burden of proof is on the growth story to justify the current price.

Understanding the Business

Company site ↗

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

What does this company do?

Indsil Hydro Power and Manganese Limited manufactures and sells low/medium/high carbon silico manganese alloys in India and internationally. The company operates through two segments, Ferro Alloy and Power. It offers smelter, powder, and silico manganese and manganese ore.

IndustrySteel

SectorBasic Materials

Employees192

Annual revenue₹152 Cr

How does it make money?

Turns over ₹152 Cr a year. Of every ₹100 of sales, about ₹10 reaches shareholders as profit, with ₹12 left at the operating level before interest, tax and depreciation. Each of its 192 employees supports ₹78.9 lakh of revenue a year, the signature of a people-led business.

EBITDA margin11.8%

Net margin9.9%

Revenue / employee₹78.9 lakh

Who are its competitors?

The closest listed comparisons in its industry are TATA STEEL LIMITED, JSW STEEL LIMITED, JINDAL STEEL LIMITED, STEEL AUTHORITY OF INDIA. These are the companies its valuation and returns are measured against elsewhere in this report.

TATA STEEL LIMITEDP/E 19.8x · ROE 10.8%

JSW STEEL LIMITEDP/E 12.0x · ROE 24.7%

JINDAL STEEL LIMITEDP/E 39.1x · ROE 5.3%

STEEL AUTHORITY OF INDIAP/E 16.5x · ROE 7.1%

What is its competitive advantage?Little sign of one

Returns on capital of 7.2% 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.

ROCE7.2%

ROE7.6%

Peer median ROE10.8%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved -14% while net margin moved -294% 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-14%

Margin effect-294%

DalalBaazaar Score

51/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 5.0% a year
✗ Profit fell 17.4% in the latest year

Quality vs. Valuation

Company Quality

50/ 100

Average

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

Valuation

69/ 100

Cheap

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

7.1x

1.3Y Median

1.6x

16 monthly readings · mean 2.9x · range 1.1x–7.6x

Sector Median

18.2x

median of 4 sector peers

⚠️Current valuation is approximately 330% above its 1.3y median of 1.6x. 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 61% below the peer median of 18.2x.

vs. its own history

Expensive

1.6x median over 16 months · +330%

vs. sector peers

Cheap

18.2x median of 4 peers · -61%

vs. generic bands

Cheap

Below 15x

P/E (Trailing)

7.1x

P/B

0.51x

EV/EBITDA

5.4x

PEG

—

Dividend Yield

1.67%

What's Good / What's Bad

🟢 What's Going Well2

Margins are improving
EBITDA margin is up from 8.7% to 11.8% over 3 years.
Return on equity is rising
ROE has improved from -7.2% to 7.6%.

🔴 What Needs Attention1

Valuation above its historical average
At 7.1x the stock trades 330% above its own median of 1.6x.

Red Flags

No automated checks triggered

None of the automated financial checks below were triggered on the years of data available. That is not the same as a clean bill of health — see what could not be checked.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 8.7% to 11.8%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Cheaper than its peers
It trades 61% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.

🔴 Bear CaseWhat could go wrong?

The price already assumes success
The stock trades 330% above its own median multiple. At this level the business has to deliver just to stand still, and a stumble is repriced twice — lower earnings on a lower multiple.
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

1EBITDA margin holds above 10%✓ 11.8%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Free cash flow remains positive✓ ₹2 Cr
Profit that never becomes cash eventually stops being profit.
3ROCE stays above 8%✗ 7.2%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.
4Valuation vs its own median of 1.6x✗ 7.1x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

4 / 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
✓ 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 · 3 neutral · 4 weak

Market Cap

₹100 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

7.1x

Cheap

Cheap against the generic band

P/B Ratio

0.51x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹5.06

Profitable

Profitable on a per-share basis

ROE

7.6%

Weak

Weak capital efficiency

ROCE

7.2%

Weak

Low return on total capital employed

Debt/Equity

Not available

No data

Source didn't return this field

Revenue Growth (YoY)

-1.3%

Shrinking

Sales are contracting

Profit Growth (YoY)

-17.4%

Falling

Profits are shrinking

Dividend Yield

1.67%

Modest

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

Free Cash Flow

₹2 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

CMP

₹35.85

Operating Margin

11.2%

Average

Average margins

Net Margin

9.2%

Average

Average bottom-line conversion

Current Ratio

10.07

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.66

Defensive

Steadier than the market

52W Range Position

30%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

37.9 / 39.5

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

28.5

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹177 Cr	₹117 Cr	₹128 Cr	₹152 Cr	-5.0%
EBITDA	₹15 Cr	₹6 Cr	-₹4 Cr	₹18 Cr	+5.2%
EBITDA Margin	8.7%	5.5%	-3.3%	11.8%	—
PAT (Net Profit)	-₹9 Cr	-₹9 Cr	₹76 Cr	₹15 Cr	—
EPS	₹-3.25	₹-3.22	₹27.38	₹5.4	—
ROE	-7.2%	-7.0%	41.2%	7.6%	—
ROCE	7.0%	1.9%	47.6%	7.2%	—
Total Debt	₹105 Cr	₹95 Cr	—	—	—
Free Cash Flow	₹27 Cr	₹8 Cr	-₹12 Cr	₹2 Cr	-59.2%

🔴 Revenue has shrunk at 5.0% a year over 3 years.

🟢 EBITDA has grown at 5.2% a year over 3 years.

🟢 EBITDA Margin has risen from 8.7% to 11.8% over 3 years (+3.1 pts).

🟢 PAT (Net Profit) has turned positive, from -₹9 Cr to ₹15 Cr.

🟢 EPS has turned positive, from ₹-3.25 to ₹5.4.

🟢 ROE has risen from -7.2% to 7.6% over 3 years (+14.8 pts).

🟡 ROCE has held roughly flat at 7.2% over 3 years.

🔴 Free Cash Flow has shrunk at 59.2% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹227 Cr

Total Liabilities

₹29 Cr

Total Debt

—

Cash & Equivalents

₹3 Cr

Operating Cash Flow

₹5 Cr

Capex

-₹3 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

73.8%

Corporate Actions

Dividend Rate

₹0.6

Ex-Dividend Date

10 Sept 2026

Peer Comparison

Company	P/E	ROE
TATA STEEL LIMITED	19.8x	10.8%
JSW STEEL LIMITED	12.0x	24.7%
JINDAL STEEL LIMITED	39.1x	5.3%
STEEL AUTHORITY OF INDIA	16.5x	7.1%

Recent News

2 positive2 mixed2 general

Indsil Hydro Power returns to profit in FY26, declares dividend

scanx.trade, 04 OctCapital return

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

Indsil Hydro Power & Manganese Ltd Forms Death Cross, Signalling Bearish Trend

MarketsMojo, 13 OctAnalyst view

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

Indsil Hydro Power & Manganese Receives GST Demand Order of ₹12,09,060 with Penalty of ₹14,60,678

scanx.trade, 12 MayOrder win

🟢Potentially positiveAn order or contract win, which adds to future revenue. How much depends on its size against annual sales and on when it is executed.

Indsil Hydro Power and Manganese (BSE:522165) Stock Forecast & Analyst Predictions

Simply Wall Street, 15 NovAnalyst view

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

Ganesh Benzoplast - These 8 stocks in Anil Kumar Goel’s portfolio surged up to 60% in FY26 – Are you holding any?

The Economic Times, 13 Dec

INDSIL HYDRO POWER AND MANGANE Share Price

Upstox, 20 Mar

Watch Items

Revenue growth is negative (-1.3%) 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.
1 metric couldn't be retrieved for this stock — this is more common for smaller or thinly-covered listings.
RSI is in oversold territory — could mean either a bargain or a stock still falling for good reason. Check the 'why' before assuming reversal.

DalalBaazaar Thesis

🟡Business QualityAdequate9/20

🟢Financial HealthStrong17.5/20

🔴GrowthWeak2.4/20

🟡ProfitabilityModerate8.3/15

🟢ValuationAttractive9.8/15

🔴RiskHigh4.4/10

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.

This thesis breaks if

✓EBITDA margin holds above 10%11.8%
✓Free cash flow remains positive₹2 Cr
✗ROCE stays above 8%7.2%
✗Valuation vs its own median of 1.6x7.1x today