ITL Industries Limited

Industrials — Specialty Industrial Machinery · NSE

₹372.90+₹4.75 (+1.29%)

DalalBaazaar Score

54 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

Moderate

Driven by negative free cash flow, micro-cap size, which brings thin liquidity.

In simple words: Reasonable but unspectacular business quality, 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 ITL Industries Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

ITL Industries Limited engages in manufacturing and sale of machines and machine parts in India. It operates through Machine Division and Trading Division segments.

IndustrySpecialty Industrial Machinery

SectorIndustrials

Employees285

Annual revenue₹203 Cr

How does it make money?

Turns over ₹203 Cr a year. Of every ₹100 of sales, about ₹4 reaches shareholders as profit, with ₹8 left at the operating level before interest, tax and depreciation. Each of its 285 employees supports ₹71.2 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹71.2 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?Little sign of one

Returns on capital of 14.7% 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 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 +41% while net margin moved -25% 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+41%

Margin effect-25%

DalalBaazaar Score

54/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ ROE of 9.2% is weak
✗ ROE has fallen by 3.2 points over the period

Quality vs. Valuation

Company Quality

48/ 100

Average

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

Valuation

68/ 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

13.5x

Sector Median

66.2x

median of 4 sector peers

🟢Against its sector it trades 80% 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 · -80%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

8.9x

PEG

7.59

What's Good / What's Bad

🟢 What's Going Well2

Very low debt
Debt/Equity of 0.25x 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 9.6% to 7.8% over 3 years.
Return on equity is falling
ROE has dropped from 12.3% to 9.2% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 17.8% to 14.7% — often a sign of competition or overexpansion.

Red Flags

2 items require attention · 2 watch

🟡Debt is increasingFinancial
Total debt is up 45% over 3 years.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹3 Cr in the latest year.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Cheaper than its peers
It trades 80% 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?

Margins are being competed away
EBITDA margin has fallen from 9.6% to 7.8%. 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 12.3% to 9.2%. 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 9% a year✓ 12.2% CAGR
Latest reported year was 26.0%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 6%✓ 7.8%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹3 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 1.4x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 12%✓ 14.7%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

6 / 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

6 good · 4 neutral · 1 weak

Market Cap

₹119 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

13.5x

Cheap

Cheap against the generic band

P/B Ratio

1.35x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹27.62

Profitable

Profitable on a per-share basis

ROE

9.2%

Moderate

Moderate capital efficiency

ROCE

14.7%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.25x

Low

Conservative leverage

Revenue Growth (YoY)

26.0%

Healthy

Healthy top-line growth

Profit Growth (YoY)

31.3%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.34%

Modest

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

Free Cash Flow

-₹3 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

7.3%

Average

Average margins

Net Margin

4.1%

Average

Average bottom-line conversion

Current Ratio

1.98

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

-0.12

Defensive

Steadier than the market

52W Range Position

78%

Mid-range

Technical Snapshot

RSI (14)

55.8

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹144 Cr	₹158 Cr	₹183 Cr	₹203 Cr	+12.2%
EBITDA	₹14 Cr	₹15 Cr	₹16 Cr	₹16 Cr	+4.7%
EBITDA Margin	9.6%	9.4%	8.9%	7.8%	—
PAT (Net Profit)	₹8 Cr	₹9 Cr	₹9 Cr	₹8 Cr	+1.8%
EPS	₹24.08	₹28.6	₹28.96	₹25.39	+1.8%
ROE	12.3%	12.8%	11.6%	9.2%	—
ROCE	17.8%	17.9%	17.4%	14.7%	—
Total Debt	₹16 Cr	₹16 Cr	₹22 Cr	₹23 Cr	+13.2%
Free Cash Flow	₹4 Cr	₹1 Cr	-₹2 Cr	-₹3 Cr	—

🟢 Revenue has grown at 12.2% a year over 3 years.

🟢 EBITDA has grown at 4.7% a year over 3 years.

🔴 EBITDA Margin has fallen from 9.6% to 7.8% over 3 years (-1.8 pts).

🟡 PAT (Net Profit) has been broadly flat over 3 years (1.8% a year).

🟡 EPS has been broadly flat over 3 years (1.8% a year).

🔴 ROE has fallen from 12.3% to 9.2% over 3 years (-3.2 pts).

🔴 ROCE has fallen from 17.8% to 14.7% over 3 years (-3.1 pts).

🔴 Total Debt has grown at 13.2% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹4 Cr to -₹3 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹153 Cr

Total Liabilities

₹65 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

₹0 Cr

Capex

-₹3 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

60.4%

Corporate Actions

Dividend Rate

₹1.25

Ex-Dividend Date

15 Sept 2026

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

1 positive1 mixed1 negative3 general

ITL Stock Price and Chart — NSE:ITL

TradingView, 17 Aug

ITL Industries Ltd. Peer Comparison – Compare with Others

Value Research, 31 Aug

ITL Industries AGM approves ₹7 lakh monthly pay for director relatives

scanx.trade, 22 Sept

ITL Industries Q1 FY27 Results: Revenue Rs 52 Cr, PAT Up 31%

Univest, 17 AugResults

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

ITL Industries Limited Announces Internal Auditor Resignation Effective March 5, 2026

scanx.trade, 05 MarManagement

🔴Potentially negativeA senior departure, and an auditor's resignation especially, is worth understanding before anything else in this report.

Dividend Stocks This Week: Cochin Shipyard, Hindustan Copper, PG Electroplast & More — Check Full List

NDTV Profit, 13 SeptCapital return

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

Watch Items

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

DalalBaazaar Thesis

StrongFinancial Health · Valuation

MiddlingGrowth · 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.

1 of 5 tripwires tripped — Free cash flow remains positive · see Key things to watch ↑